Risk weighting

At the bank, a process whereby each on-balance sheet and off-balance sheet transaction is assigned a percentage weighting that reflects the estimated credit risk. Transactions with a certain risk weight are then grouped into risk groups. – See chief risk officer, due diligence, function, spread of terms, credit scoring procedure, accumulation, liquidity risk, minimum risk management requirements, risk assessment system, proportionality, dual, risk-return principle, risk department, risk control, risk management, risk buffer, setback effect, loss event, scenarios, exceptional. – Cf. ECB Monthly Bulletin of May 2001, pp. 65 ff, ECB Monthly Report of January 2005, p. 57, BaFin Annual Report 2005, p. 121 (obligation to conduct a comprehensive risk assessment updated on an annual basis as of January 1, 2007), p. 123 (results of the November 2005 risk classification of banks), BaFin Annual Report 2010, p. 165 (higher requirements for internal risk models; risk models and factor margins since 2000)) as well as the respective BaFin Annual Report, Deutsche Bundesbank Monthly Report of June 2006, p. 35 et seq. (with particular emphasis on concentration risks).

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/