Bilateral exposure measures the potential financial loss arising from a specific counterparty relationship if that counterparty does not fulfill its contractual duties. It can apply to lending, trading, settlement and other obligations involving institutions, companies, investors or public-sector entities. The measurement may reflect gross claims or be adjusted for collateral, legally enforceable netting and other permitted offsets, and is useful for evaluating counterparty dependence and concentration.
Passende Formel
Source: European Central Bank (ECB) (source). This glossary entry is an independently worded adaptation of the cited information.