# Credit loss (credit default)

- Canonical URL: https://www.gerhardmerk.de/credit-loss-credit-default
- Post ID: 591584
- Modified: 2023-07-25T20:59:07+00:00
- Language: en

## Definition

The loss incurred by a bank due to the insolvency of a borrower. The exact amount is only known to the bank after the settlement period. This period can vary depending on the loan agreement and the collateralization. It is generally between eighteen months and three years, but can exceed ten years in exceptional cases. - See probability of default, contingent loss, credit event, credit risk, rating, loss given default. 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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