. The credit generates risks. The inadequate financial state of the companies plus the economic conjuncture and the absence … carefully surveillance of the clients activity during all the time of the credit. …

Purpose – The purpose of this paper is to investigate the relationship between liquidity and credit risk, and employ … the findings to estimate the Incremental Risk Charge (IRC), the new credit risk capital add-on introduced by the Basel … findings show that, although the (incremental) credit risk in the trading book may be considerable, the capital needed to …

. Findings – It is found that companies are more likely to minimize losses and maximize profits if they can obtain credit at a … positive profits. The corollary lesson is that credit is valuable, and having substantial credit obtainable at low rates is so …