Okuzeka
Finance & Banking vocabulary · Risk Management

Transfer risk

Meaning in finance & banking, with examples

nounAdvanced term

In finance & banking, transfer risk means: The risk that restrictions prevent a borrower from converting or sending funds abroad to meet an obligation.

In Turkish: transfer riski

How it is used

Distinguish restrictions on international payment from the borrower's own financial inability to pay.

Example sentences

  1. The exporter assessed transfer risk despite the buyer's strong cash position.

    A solvent buyer may still face cross-border payment restrictions.

  2. New currency controls increased transfer risk on the foreign-currency loan.

    Currency restrictions can obstruct the funds needed for repayment.

Common collocations

  • country transfer risk
  • transfer risk assessment
  • foreign exchangeThe buying and selling of currencies, or foreign currency itself. It is often shortened to FX or forex.
  • credit riskThe risk that a borrower or another party will not pay back money it owes on time or in full, causing a loss for the lender.

More terms: Risk Management

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