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Banking terminology

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Ankit Kumar

Ankit Kumar (Querist)
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13 December 2013
Can anyone tell me the meaning of credit exposure and credit exposure limit.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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14 December 2013 credit exposure means the loan/advance given by the bank/lending institution. It could mean exposure to a particular client or a particular industry or a particular geography.

credit exposure limit means the limit beyond which the institution won't take further exposure.

Eg: lets say bank has given you loan of Rs 10 lakhs and you have drawn 5 lakhs. So 5 lakh is the exposure and 10 lakh is the limit.

Ankit Kumar

Ankit Kumar (Querist)
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14 December 2013 First of all..thanks for ur valuable replay nd two more question i"d like to raise....

1- What is the meaning of loan equivalent risk?

2- Meaning of foreign exchange forward contract? With example.

eagerly waiting for the reply.

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