Active credit risk
Active credit risk - Constitutes a threat of default by the borrower's loan payments (principal and interest installments) as stated in the contract amount and loan term. This risk is largely shaped by the bank, although a large proportion of that risk is exogenous (external) and can not be fully controlled. This type of risk also applies to off-balance sheet transactions such sureties guarantees and letters of credit, which - although not included in the assets - are part of banking operations, in which the bank is an active page.
See also: Passive credit risk Strategic analysis Makrootoczenie Mikrootoczenie Mission statement
Thanks for Sorry for all grammatical and spelling mistakes. All definitions was translated from polish language. Oryginal definition: here
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