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Resources for bankers

Counterparty Risk

Counterparty risk is the probability that the other party in an investment, credit, or trading transaction may not fulfill its part of the deal and may default on the contractual obligations.

See also Counterparty Risk Management Policy Group (CRMPG) and Bank for International Settlement

BC=Banking Circular

Risk Management of Financial Derivatives and Bank Trading Activities (OCC 1999-2, Supplemental Guidance)
Summarizes key lessons learned and fundamental control issues reaffirmed by financial institutions' experience since mid-1997

Credit Derivatives – Guidelines for National Banks (OCC 1996-43, August 1996); Risk Management of Financial Derivatives (BC 277, November 1993)
Covers supervisory guidance on issues related to bank participation in the developing market for credit derivatives

External References

Toward Greater Financial Stability: A Private Sector Perspective (Counterparty Risk Management Group II, July 2005)
Examines private sector activities that promote the efficiency, effectiveness, and stability of the global financial system

Related News and Issuances
Publish DateIdentifierTitle
12/21/2018  NR 2018-144, Agencies Invite Comment on a Proposal to Exclude Community Banks from the Volcker Rule
12/17/2018  OCC 2018-45, Capital: Notice of Proposed Rulemaking
09/21/2018  NR 2018-102, Agencies Approve Amendments to Swap Margin Rule