Types of Credit Risks

Credit risk

The credit risk is the risk of losing the deposits accepted as collateral for a loan  during the repayment period some or all of its value and therefore if  it is not sufficient to cover the loans,

To mitigate this credit risk is the value of the deposits accepted which the credit guarantees made by the use of collateral values and loan to value limits the percentage of discounts, is limited by the amount of potential credit. Legal risks are not part of the credit risk, Because legal risks are limited but only for the operational risks of the general banking operations.

Issuer risk:

Issuer risk is the risk of credit deterioration of an issuer or reference entity. It is caused by the purchase of securities for its own portfolio of credit institutions, securities issuance and placement transactions (in the phase of syndication and underwriting), and credit derivatives with an underlying issuer (the credit default swap for the so-called protection sellers).  All these elements are affected  by these entities bonds, promissory notes and certificates, reverse convertibles and convertibles,
Investment risk

Investment risk is similar to credit risk, because it consists of the risk that the bank commitments made by a bank holding  to potential losses (due to dividend failure, partial value depreciation, capital losses or reduction of hidden reserves) from equity provided from profit transfer agreements or loss acquisitions or can result from liability (eg, letters of comfort). Investment risk cover), both on strategic investments (in the bank-related field as well as operational holdings  in non-banking sectors.