# Credit losses (ailing loans)

- Canonical URL: https://www.gerhardmerk.de/credit-losses-ailing-loans
- Post ID: 591192
- Modified: 2023-07-25T20:59:08+00:00
- Language: en

## Definition

Losses incurred by banks when granting loans due to the fact that some loans are not repaid at all or only partially. - Banks attempt to hedge such risks by securitization or by using credit derivatives. Central banks continuously monitor credit defaults because of possible risks to the financial system as a whole. - See default, credit default swap, loan-versus-paper transaction, default, contingent loss, loan, non-performing, credit default swap, credit event, credit card fiasco, credit quality, credit risk, lending principle, customer, bad, air papers, papers, toxic, PayGreen initiative, reintermediation, risk department. - Cf. ECB Monthly Bulletin, March 2004, pp. 39 ff. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! 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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