# Loss given default

- Canonical URL: https://www.gerhardmerk.de/loss-given-default
- Post ID: 591317
- Modified: 2023-07-25T21:02:58+00:00
- Language: en

## Definition

Measure of a bank's expected average loss per exposure in the event of default by a specific counterparty. This arises when the proceeds from - the payments made by a borrower to date and - the liquidation of collateral and - any guarantees or sureties are insufficient to cover the liabilities. - In 2007, 6.35 percent of loans were not serviced in the United States and 1.33 percent in Spain. - See default rate, expected, default, confidence level, liquidity management, risk, delinquency rate, debt, nonperforming, value at risk, loss rate, delinquency. 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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