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Glite Dictionary
credit exposure

credit exposure

6.4
The total amount of money a bank or lender may lose if loans are not repaid
  • noun
  • Specialized
translation icon : exposición crediticia
  • Investors are concerned about the credit exposure of financial institutions during an economic downturn.

Examples

  • After reviewing the reports, the committee assessed the risks associated with their credit exposure.

  • But look closer, because the BIS figures have something new: a breakdown of credit exposure by type.

    Blog text (1)

  • For that $2.4 trillion in credit exposure, Fannie had equity of around $0.04 trillion.

    Blog text (12)

  • The bank calculated its total credit exposure to ensure it could handle potential losses.

Synonyms

exposure
vscredit exposure
295 3.5

Being in contact with something that can affect you

refers to a bank's total money lent that could be lost if unpaid

Surface Forms

credit exposure singular
credit exposures plural

Morphology

credit + exposure

The constituents 'credit' (money lent) and 'exposure' (being subject to a hazard) do suggest a relation to risk tied to lending, so a learner can get a general gist that it means an amount at risk. However, the precise technical sense—the total sum a lender stands to lose if loans are not repaid—is domain-specific and not fully predictable for a B1 learner without financial knowledge, so it is only partially transparent.

Etymology

Credit exposure comes from a simple image: when a bank gives credit, meaning money to a borrower, it has exposure like someone standing without shelter, open to harm. So credit exposure means the total amount the bank could 'lose' if people do not pay back the loans.