The potential default of a bank's customer to meet his or her obligations on agreed terms constitute a credit risk for a bank.

Name: The potential default of a bank's customer to meet his or her obligations on agreed terms constitute a credit risk for a bank.
Brand: Quizplus
Rating: 4.8 (55 reviews)

Question

Quizplus · Accepted Answer

Credit risk refers to the risk that a borrower will default on any type of debt by failing to make required payments, which directly impacts a bank when its customers cannot meet their financial obligations on agreed terms.

The Potential Default of a Bank's Customer to Meet His