Evaluation and risk analysis.

The point at which credit risk becomes exchange rate redenomination risk is ambiguous.

The evaluation is based on the following criteria political risk, economic risk, economic structure and liquidation risk.

In others, banks need to re examine their procedures for credit risk assessment and credit allocation.

Credit risk is best hedged through diversification across uncorrelated credits.

Difference between risk evaluation requirements conducted under different international bodies

Credit risk in the mortgage market is being assumed by the government, and market risk by the Fed.

But, if more risk builds up through continued expansion of shadow credit, this risk buffer may become inadequate.

Uncertainty analysis and risk assessment are included in the evaluation process.

While credit expansion can offset this to some degree, increased production based on credit expansion inevitably leads to large scale financial risk.

Indeed, a chain of financial intermediaries now earn fees without bearing the credit risk.

This risk was highlighted by the recent downgrade of Italy s credit rating by Standard Poor s.

In the past, banks kept loans and mortgages on their books, retaining the credit risk.

With the government assuming credit risk, mortgages become as safe as government bonds of comparable maturity.

From a financier's perspective, the cost and availability of credit are guided by perceptions of risk.

They range from subdued bank lending to unusually high risk aversion, and from discredited credit vehicles to the withdrawal of some institutions from credit intermediation altogether.

This would, in its turn, allow banks and other lenders to better assess enterprise risks using modern ICT based techniques for credit risk assessment and credit scoring.

In other words, the Fed will use regulatory instruments to control credit growth, risk taking, and leverage.

5.2. Recognize the informal studies of education and health promoters and grant them, following an appropriate evaluation, equivalent credit.

Even if this sounds unfair, it is logical to expect rating agencies, which had been lax in evaluating credit risk, now to be rigorous in assessing all forms of risk, including sovereign risk.

Similarly, positioning the IMF as a general risk insurer by introducing precautionary credit lines above normal access limits would be compatible neither with its mission to provide financial assistance on deliberately non risk adjusted terms nor with the current system of refinancing short term Fund credit through risk free official reserves.

Innovative financial instruments such as derivatives and credit default swaps enabled the distribution of risk throughout the economy.

Clarifying ultimate responsibility for credit quality and risk would also reduce intermediation costs by eliminating the need to resort to informal channels, such as credit guarantee and trust companies.

UNIFEM will study the results of an evaluation of the Fund apos s technology and credit projects for future related activities.

Investors thus assumed that they did not need to assess the credit risk of eurozone countries (national) public debt.

Loans are based on the performance of the borrower in the chain, rather than on the borrower's credit risk.

It was suggested that, if a chemical was of global concern, no national risk evaluation should be necessary.

To its credit, the World Bank recognized this mistake in a scathing internal evaluation of its long standing agricultural policies last year.

Like banks, all these financial institutions are subject to liquidity or rollover risk the risk of going belly up if their creditors do not rollover their short term credit lines.

The immediate causes are well known. They range from subdued bank lending to unusually high risk aversion, and from discredited credit vehicles to the withdrawal of some institutions from credit intermediation altogether.

There is now a serious risk of a systemic meltdown in US financial markets as huge credit and asset bubbles collapse.

Germany will look like a better credit risk, thereby allowing it to fund its current budget deficits more easily and cheaply.

Any United Nations bond issue would be evaluated by market participants and potential investors by its credit rating, which is a formal evaluation of the creditworthiness of the bond issue by an independent credit rating agency.

A preliminary risk analysis was undertaken in OII, using a common assessment instrument for audit, monitoring, evaluation and inspection activities.

Credit Where Credit is Due

Meanwhile, prolonged low interest rates contributed to a chase for yield in the financial sector that resulted in disregard of credit risk.

Insurance companies and pension funds, on the other hand, have limited capacity for credit risk, but more for market and liquidity risks.

Some ECAs have adopted new arrangements to reduce the risk to lenders that seem to compromise the nature of export credit finance.

Credit Line for sector by facilitating Micro enterprises access to micro and small enterprises through the creation of a credit guarantee fund intended to cover risk sharing with selected national banks and venture capital funds.

INSTRAW will continue a programme of evaluation of development strategies and programmes, mainly of those related to the impact of credit over a period of time, a by product of which will be a typology for credit projects.

In most developing countries, financial service providers are not yet in a position to use modern credit risk management techniques to assess borrowers' risk and thus competitively provide capital, particularly trade finance, to enterprises.

But, as local government debt grows, Chinese banks have begun to regard real estate and local financing platforms as a major credit risk.

Credit rating agencies, institutional investors, and asset managers are encouraged to see how such factors can be incorporated into their own risk models.

Both young people and older workers often have difficulty gaining access to credit because they are considered a very high risk by lenders.

In the area of internal oversight, UNDP welcomes the recommendation for the evaluation and implementation of an enterprise risk management strategy (para.