BANK 5.2.1 Concentration risk

Concentration risk to a banking business firm arises if the firm is exposed to 1 counterparty, or to 2 or more counterparties that are not truly independent of each other, and the total of the exposures to the counterparty or counterparties is large enough to endanger the firm’s liquidity or solvency.

Derived from QFCRA RM/2014-2 (as from 1st January 2015).