Banking

Kreditbewertungsanpassung

A regulatory adjustment to the fair value of derivative instruments to account for counterparty credit risk, as mandated by Basel III. CVA reflects the market value of counterparty default risk on over-the-counter derivatives.

Quick answer: A regulatory adjustment to the fair value of derivative instruments to account for counterparty credit risk, as mandated by Basel III. CVA reflects the market value of counterparty default risk on over-the-counter derivatives.

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Quick answer

A regulatory adjustment to the fair value of derivative instruments to account for counterparty credit risk, as mandated by Basel III. CVA reflects the market value of counterparty default risk on over-the-counter derivatives.

Why it matters

Kreditbewertungsanpassung matters because it supports clear communication in Banking contexts for Financial Analysts, Bankers, and Traders. It also connects to aviation training and exam language such as CFA, ACCA, and FRM.

Editorial context

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Questions and answers

Questions and answers

What is Kreditbewertungsanpassung?

In this glossary, Kreditbewertungsanpassung refers to: A regulatory adjustment to the fair value of derivative instruments to account for counterparty credit risk, as mandated by Basel III. CVA reflects the market value of counterparty default risk on over-the-counter derivatives.

How is Kreditbewertungsanpassung used in finance?

In finance communication, this term appears in contexts such as: "Banken sind verpflichtet, für Derivateportfolios Kreditbewertungsanpassungen gemäß Basel III zu berechnen, um das Kontrahentenrisiko widerzuspiegeln."

Why does Kreditbewertungsanpassung matter in finance?

Kreditbewertungsanpassung matters because it supports clear communication in Banking contexts for Financial Analysts, Bankers, and Traders. It also connects to aviation training and exam language such as CFA, ACCA, and FRM.

Who uses Kreditbewertungsanpassung?

Kreditbewertungsanpassung is mainly used by Financial Analysts, Bankers, and Traders.

What category does Kreditbewertungsanpassung belong to?

In this glossary, Kreditbewertungsanpassung is grouped under Banking. Related pages in this category explain adjacent procedures, commands and operational concepts.

Where does this definition come from?

This definition is sourced from CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework and published by Protermify Finance as a static finance reference page.

Definition

A regulatory adjustment to the fair value of derivative instruments to account for counterparty credit risk, as mandated by Basel III. CVA reflects the market value of counterparty default risk on over-the-counter derivatives.

Operational example

Banks are required to calculate credit valuation adjustment charges for derivative portfolios to reflect counterparty risk as per Basel III.

Localized term

Kreditbewertungsanpassung

Localized example

Banken sind verpflichtet, für Derivateportfolios Kreditbewertungsanpassungen gemäß Basel III zu berechnen, um das Kontrahentenrisiko widerzuspiegeln.

Definition language

English reference definition

Source

CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework

Category

Banking

Exam relevance

  • CFA
  • ACCA
  • FRM

Target audience

  • Financial Analysts
  • Bankers
  • Traders

Related terms

Use the related links below to continue through connected finance terminology.

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