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Finance & Banking vocabulary · Regulation & Compliance

De-risking

Meaning in finance & banking, with examples

nounAdvanced term

In finance & banking, de-risking means: Restricting or ending customer relationships to avoid risk rather than managing individual risks.

In Turkish: riskten kaçınmak için müşteri ilişkisini sonlandırma

How it is used

In AML discussions it often concerns whole customer categories; it is not simply any risk reduction.

Example sentences

  1. The report linked wholesale de-risking to reduced access to correspondent banking.

    Ending a whole category of relationships can remove access to services.

  2. The committee preferred individual reviews to de-risking an entire customer segment.

    Case-by-case assessment differs from categorical withdrawal.

Common collocations

  • wholesale de-risking
  • de-risking policy
  • AMLShort for anti-money laundering: the laws, controls and procedures that banks use to prevent, detect and report money laundering.
  • correspondent bankA bank that provides services, such as making payments or handling trade documents, for another bank in a country or currency where that bank has no presence.

More terms: Regulation & Compliance

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This page explains English vocabulary for learners. It is not financial advice.