Credit conversion factor

How it is used

Abbreviated CCF; applicable factors depend on the product and regulatory or modelling approach.

Example sentences

1. The model applied a credit conversion factor to the undrawn facility.

   An unused commitment can still contribute to measured exposure.

2. The analyst checked which credit conversion factor applied to the guarantee.

   Different contingent obligations may receive different factors.

Common collocations

• apply a credit conversion factor
• CCF assumption

Related terms

• credit facilityAn arrangement in which a bank agrees to lend a company up to a set amount, which the company can draw on as needed under agreed terms.
• exposureThe amount of money a bank could lose to a particular borrower, sector, country or market if things go wrong.

More terms: Risk Management

• credit risk
• default
• liquidity
• non-performing loan
• hedge
• market risk
• operational risk
• provision
• stress test
• credit rating
• risk assessment
• mitigate