Banking
The share of an asset that is lost by a lender when a borrower defaults, expressed as a percentage of exposure at default, used in credit risk calculations.
Quick answer: The share of an asset that is lost by a lender when a borrower defaults, expressed as a percentage of exposure at default, used in credit risk calculations.
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The share of an asset that is lost by a lender when a borrower defaults, expressed as a percentage of exposure at default, used in credit risk calculations.
Loss Given Default 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.
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Questions and answers
In this glossary, Loss Given Default refers to: The share of an asset that is lost by a lender when a borrower defaults, expressed as a percentage of exposure at default, used in credit risk calculations.
In finance communication, this term appears in contexts such as: "Loss given default is estimated using historical recovery rates on defaulted loans."
Loss Given Default 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.
Loss Given Default is mainly used by Financial Analysts, Bankers, and Traders.
In this glossary, Loss Given Default is grouped under Banking. Related pages in this category explain adjacent procedures, commands and operational concepts.
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.
The share of an asset that is lost by a lender when a borrower defaults, expressed as a percentage of exposure at default, used in credit risk calculations.
Loss given default is estimated using historical recovery rates on defaulted loans.
English reference definition
CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework
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