Banking terminology
This query is : Open
13 December 2013
Can anyone tell me the meaning of credit exposure and credit exposure limit.
Can anyone tell me the meaning of credit exposure and credit exposure limit.
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.
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.
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.
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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