Search: credit risk/exposure
RBA Glossary definition for credit risk/exposure
credit risk/exposure – The risk that a counterparty will not settle an obligation for full value, either when due or thereafter. In 'exchange-for-value' systems, the risk is generally defined to include replacement risk (the risk of having to replace a contract at a potentially unfavourable price) and principal risk.
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December: 1997-Glossary
9 Mar 2023
Media Release
the currency purchased is received with finality (see credit risk/exposure and foreign exchange settlement risk). ... The resulting exposure is the cost of replacing, at current market prices, the original transaction (see credit risk/exposure and market
https://www.rba.gov.au/media-releases/1997/mr-97-22-fxsp/annex-e.html
RESERVE BANK OF AUSTRALIA FOREIGN EXCHANGE SETTLEMENTPRACTICES IN AUSTRALIA ...
18 Dec 1997
Media Release
PDF
268KB
It is important to note that this definition is designed to address the size andduration of the credit exposure that can arise during the foreign exchange settlementprocess. ... This is a significant on-going credit risk, representing a sumequivalent to
https://www.rba.gov.au/media-releases/1997/pdf/fxsp.pdf
Expectations for Tokenisation of Payment Cards and Storage of PANs
21 Dec 2023
Media Releases
The Bank has released a final set of expectations for the Tokenisation of Payment Cards and Storage of PANs, aimed at improving security, efficiency and competition for online card payments.
https://www.rba.gov.au/media-releases/2023/mr-23-37.html
Assessment of ASX Clearing and Settlement Facilities – October 2023
9 Oct 2023
Media Releases
The Reserve Bank of Australia today released the 2023 Assessment of the ASX Clearing and Settlement Facilities. This assesses the performance of the ASX CS Facilities against the Bank’s Financial Stability Standards (FSS).
https://www.rba.gov.au/media-releases/2023/mr-23-27.html
Promoting Competition in the Debit Card Market
21 Jun 2023
Media Releases
Mastercard and Visa have each given undertakings to the Reserve Bank that they will not engage in ‘tying conduct’ involving their debit and credit card products.
https://www.rba.gov.au/media-releases/2023/mr-23-15.html
Statement by Philip Lowe, Governor: Monetary Policy Decision
4 Apr 2023
Media Releases
At its meeting today, the Board decided to leave the cash rate target unchanged at 3.60 per cent and the interest rate on Exchange Settlement balances unchanged at 3.50 per cent.
https://www.rba.gov.au/media-releases/2023/mr-23-08.html
December: 1997-Sample Questionnaire
9 Mar 2023
Media Release
do they involve the substitution/novation of credit exposure to a central counterparty? ... 10. Outline any measures that your institution is taking to reduce settlement risk in foreign exchange transactions.
https://www.rba.gov.au/media-releases/1997/mr-97-22-fxsp/annex-b.html
December: 1997-Risk Management Practices
9 Mar 2023
Media Release
The CPSS proposed a methodology by which foreign exchange dealers could measure and track their exposure to settlement risk, both against individual counterparties and in aggregate. ... In addition to the specific information requested, some respondents
https://www.rba.gov.au/media-releases/1997/mr-97-22-fxsp/risk-management-practices.html
December: 1997-Executive Summary
9 Mar 2023
Media Release
This is a credit risk, whereby a party to a foreign exchange deal may deliver funds in the currency that was sold, but not receive the corresponding funds in the currency ... While several of the institutions surveyed in Australia are acutely aware of
https://www.rba.gov.au/media-releases/1997/mr-97-22-fxsp/executive-summary.html
December: 1997-Methodology
9 Mar 2023
Media Release
It is important to note that this definition is designed to address the size and duration of the credit exposure that can arise during the foreign exchange settlement process. ... In compiling this report, the RBA has assessed the industry's risk profile
https://www.rba.gov.au/media-releases/1997/mr-97-22-fxsp/methodology.html