Jul 11, 2003 07:56
21 yrs ago
English term

Exposure

English Bus/Financial
Within the banks

Responses

+1
7 mins
Selected

Hi

"exposure limit"= the maximum amount of loans that can be grantefd to ONE SINGLE BORROWER.

"country exposure" the amount of loans granted to borrowers from a certain region/country. Usually, there are also limits on this.

HTH

Steffen

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Note added at 2003-07-11 08:12:30 (GMT)
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My colleagues above are right, of course, since any loan is a risk. If you replace \"risk\" in Ralph\'s answer by \"amount of loans\" it may become clearer in your context.
Peer comment(s):

agree Ralf Lemster : Just two things to add - see my added note
8 hrs
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4 KudoZ points awarded for this answer. Comment: "Thanks to ALL. All the answers were helpful!! THanks Steffen, your answer was the most simple ans easy to understand!"
+1
5 mins

risk

exposure means "risk" in this context
Peer comment(s):

agree Marcela García Henríquez
2 hrs
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+1
54 mins

Hi, some more info

exposure limit:
general term implying the level of exposure that should not be exceeded


country exposure:
the extent to which a financial institution has lent money to one country


source: eurodicautom

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Note added at 2003-07-11 09:00:53 (GMT)
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exposure: danger, hazard, risk
Peer comment(s):

agree Marie Scarano
1 hr
thank you :-)
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+1
6 mins

risk exposure

"Large exposure limits" are limits restricting the maximum risk permissible for individual lending relationships. Industry and country exposure denotes the aggregate risk to particular industry sectors or individual countries.

Note: please refrain from grading the question immediately - others may have better alternatives.

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Note added at 8 hrs 52 mins (2003-07-11 16:49:38 GMT) Post-grading
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I agree with Steffen\'s answer, but would like to point out two things:
(1) \"Large exposure\" is a technical term that should not be separated.
(2) Increasingly, the risk exposure resulting from loans is measured using other concepts than nominal amounts.
Peer comment(s):

agree Marcela García Henríquez
2 hrs
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