Counter-Party Risk

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August 31, 2024 4 min read Definitions

Counter-party: Definition and Importance in Transactions

Finance Banking Economics Transactions Risk Management Market Makers Financial Markets Counter-Party Risk

The term 'counter-party' refers to the other party in any transaction. It encompasses entities such as foreign customers for exporters and borrowers for lenders. Counter-party risk is the potential risk that the other party may not fulfil their contractual obligations. This article delves into its historical context, types, key events, significance, and related terms.