Credit Risk Management

Definition of Credit risk is potential from banking loan or counter side that will fail to full the obligation appropriate agree requirement. The aim of credit risk management is maximize the level change to bank by saving awarding credit in parameter which is received. Bank need to manage credit risk of all the portfolios and individual risk or credit or transaction.

For the majorities’ bank, loan is the greatest and the source of credit risk. Nevertheless, there are the other sources of credit risk in the all bank activity includes banking bookkeeping and commercial bookkeeping which is inside or outside balance. Banking credit risk more increase (or the risk of other side) in every finance instrument except loan includes input, transaction between bank, commercial fee, finance future, swap, obligation, ekuitation, option and broad comitment and loan, finishing transaction.

By : Firda Afwa Arifiana (11220011)