In a credit relation in general, the risk that a debtor may no longer be able to meet its obligations to the creditor – for example, due to insolvency. – From a bank’s point of view, this risk is generally all the more dangerous the higher the concentration of counterparties is to be assessed, i.e. business relationships – with only a few customers, – with borrowers who are economically linked, or – which depend on a similar risk factor – for example, agricultural businesses or companies from the main construction sector on the weather, or automotive suppliers on vehicle sales. Measurement techniques such as the Gini coefficient attempt to calculate this risk. – See equities, cyclical, asset quality, default risk, defaults, construction industry, deposit insurance, money market segments, Gini coefficient, granularity, group of connected customers, Herfindahl-Hirschman index, Herstatt default, intercreditor agreement, Klumprisiko, counterparty risk, concentration risk, correlation risk, special, credit event, lending principle, credit insurance, accumulation, customer, bad, air securities, million credit, normal distribution doctrine, solvency risk, denomination, overflow system, valueat-risk, value, cyclical, replacement risk. – Cf. Deutsche Bundesbank Monthly Report of June 2006, p. 35 ff. (dangers of concentration risks of all kinds), BaFin Annual Report 2006, p. 114 (two options for determination under the SolvV), BaFin Annual Report 2008, p. 132 (application of the IRBA procedure), BaFin Annual Report 2009, p, 152 (IRBA procedure for counterparty risk prevails), Deutsche Bundesbank Monthly Report of March 2013, p. 37 f. (methods for determining counterparty risk).

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/

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