Allow utilization of the full value inherent in assets to support credit in a broad array of credit transactions

The key to the effectiveness of secured credit is that it allows businesses to use the value inherent in their assets as a means of reducing risk for the creditor.

These cases underline an inherent risk in the fund allocation process.

The point at which credit risk becomes exchange rate redenomination risk is ambiguous.

In any case, there was an inherent risk in the kind of operations in question.

Greece simply cannot afford to repay its debt at interest rates that reflect the inherent risk.

Credit risk is best hedged through diversification across uncorrelated credits.

Credit risk in the mortgage market is being assumed by the government, and market risk by the Fed.

But, if more risk builds up through continued expansion of shadow credit, this risk buffer may become inadequate.

While credit expansion can offset this to some degree, increased production based on credit expansion inevitably leads to large scale financial risk.

A key to a successful legal regime governing secured transactions is to enable a broad array of businesses to utilize the full value inherent in their assets to obtain credit in a broad array of credit transactions.

Indeed, a chain of financial intermediaries now earn fees without bearing the credit risk.

This risk was highlighted by the recent downgrade of Italy s credit rating by Standard Poor s.

In the past, banks kept loans and mortgages on their books, retaining the credit risk.

To best promote the availability of low cost secured credit, the Guide suggests that secured transactions laws should be structured to enable businesses to utilize the value inherent in their property to the maximum extent possible to obtain credit.

They range from subdued bank lending to unusually high risk aversion, and from discredited credit vehicles to the withdrawal of some institutions from credit intermediation altogether.

With the government assuming credit risk, mortgages become as safe as government bonds of comparable maturity.

This would, in its turn, allow banks and other lenders to better assess enterprise risks using modern ICT based techniques for credit risk assessment and credit scoring.

Similarly, positioning the IMF as a general risk insurer by introducing precautionary credit lines above normal access limits would be compatible neither with its mission to provide financial assistance on deliberately non risk adjusted terms nor with the current system of refinancing short term Fund credit through risk free official reserves.

Owing to their operational complexity, geographical dispersion and large financial expenditure, peacekeeping missions had more inherent control risk than other parts of the United Nations.

Even if this sounds unfair, it is logical to expect rating agencies, which had been lax in evaluating credit risk, now to be rigorous in assessing all forms of risk, including sovereign risk.

In other words, the Fed will use regulatory instruments to control credit growth, risk taking, and leverage.

Clarifying ultimate responsibility for credit quality and risk would also reduce intermediation costs by eliminating the need to resort to informal channels, such as credit guarantee and trust companies.

Innovative financial instruments such as derivatives and credit default swaps enabled the distribution of risk throughout the economy.

Convinced also that the retention of nuclear weapons carries the inherent risk of proliferation of those weapons and their falling into the hands of non State actors,

In regard to such risk factors as the number of sites operating in extreme circumstances, the nature of UNHCR activities, staff rotation and the number of temporary staff in over 100 countries, there was an inherent risk of fraud.

Investors thus assumed that they did not need to assess the credit risk of eurozone countries (national) public debt.

The immediate causes are well known. They range from subdued bank lending to unusually high risk aversion, and from discredited credit vehicles to the withdrawal of some institutions from credit intermediation altogether.

Like banks, all these financial institutions are subject to liquidity or rollover risk the risk of going belly up if their creditors do not rollover their short term credit lines.

Furthermore, the inherent danger and risk from the presence of unmarked mines in many roads make ground transportation a less viable option for the movement of personnel and cargo.

There is now a serious risk of a systemic meltdown in US financial markets as huge credit and asset bubbles collapse.

Germany will look like a better credit risk, thereby allowing it to fund its current budget deficits more easily and cheaply.

Moreover, designing new risk management products is not easy. Insurance companies face inherent difficulties in measuring risks, and they must tailor their policies creatively around the human foibles that limit uptake.

The ACVZ notes that the three year dependent residence permit' for partners originating from outside the EU carries an inherent risk that women in particular may become dependent on their partner.

Meanwhile, prolonged low interest rates contributed to a chase for yield in the financial sector that resulted in disregard of credit risk.

Insurance companies and pension funds, on the other hand, have limited capacity for credit risk, but more for market and liquidity risks.

In most developing countries, financial service providers are not yet in a position to use modern credit risk management techniques to assess borrowers' risk and thus competitively provide capital, particularly trade finance, to enterprises.

Unchecked, large financial firms will be able to tap bond markets for decades to come at rates just above what the government pays, regardless of the inherent risk of their asset positions.

But, as local government debt grows, Chinese banks have begun to regard real estate and local financing platforms as a major credit risk.

Credit rating agencies, institutional investors, and asset managers are encouraged to see how such factors can be incorporated into their own risk models.

There is no inherent meaning in information.

The Panel also notes that this type of false positive match is a risk inherent in conducting computer matching programmes used to identify potentially overlapping claims (see paragraph 6 of the Special Overlap Report), a risk that is compounded by the transliteration of Arabic names into English.

The weakness inherent in the practice of diplomatic assurances lies in the fact that where there is a need for such assurances, there is clearly an acknowledged risk of torture and ill treatment.

Banks and other financial firms borrow short increasingly in recent years from the commercial securities market, not deposits and lend long at higher interest rates, taking on both credit risk (of default) and interest rate risk.

The problem may be that there are not many investors who want to take a long position on oil and Nigerian credit risk simultaneously.