Counterparty Risk
Counterparty risk is the probability that the other party in an investment, credit, or trading transaction may not fulfill its part of the deal and may default on the contractual obligations.
References
Risk Management of Financial Derivatives and Bank Trading Activities (OCC 1999-2, Supplemental Guidance)
Summarizes key lessons learned and fundamental control issues reaffirmed by financial institutions' experience since mid-1997
Credit Derivatives – Guidelines for National Banks (OCC 1996-43, August 1996); Risk Management of Financial Derivatives (BC 277, November 1993)
Covers supervisory guidance on issues related to bank participation in the developing market for credit derivatives
Popular Links
Quarterly Report on Bank Trading and Derivatives Activities
Bank for International Settlement (BIS)
Requests Under 716(f) of the Dodd-Frank Act
Related News and Issuances
| Date | ID | Title |
|---|---|---|
| 11/30/2020 | OCC 2020-105 | Volcker Rule: Quantitative Measurements |
| 02/18/2020 | OCC 2020-7 | Standardized Approach for Counterparty Credit Risk: Final Rule |
| 11/19/2019 | NR 2019-136 | Federal Bank Regulatory Agencies Finalize Rule to Update Calculation of Counterparty Credit Risk for Derivative Contracts |