Measure of the number and amount of individual loans in relation to the total volume of loans granted by a bank; more specifically, a measure of the spread of loans by amount. High granularity has a CETERIS PARIBUS risk-reducing effect and, under Basel II, therefore a capital-relieving effect. – See clump risk, concentration risk. – Cf. Deutsche Bundesbank Monthly Report of April 2001, p. 26, Deutsche Bundesbank Monthly Report of June 2006, p. 42 (granularity adjustment in the course of Basel II; here also formula for calculation).
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