exposure at default Definition

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exposure at default

Definition

EAD. The expected amount of loss that a bank would be exposed to when a debtor defaults on a loan from that bank. To get an idea of their risk, banks will often calculate an EAD value for each loan, and use those resulting figures to get an idea of their overall risk.

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exposure at default is in the Banking and Lending & Credit subjects.

Related terms

loss given default

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