179. Institutions should take into account that foreign exchange lending risk: a) may arise from …

Institutions should take into account that foreign exchange lending risk:

a) may arise from the unhedged borrower’s (i.e. retail and as small and medium-sized enterprise-SME borrowers without a natural or financial hedge that are exposed to a currency mismatch between the loan currency and the hedge currency, as defined in EBA/GL/2014/13) inability to service debt denominated in currencies other than the currency of the Member State in which the institution has been authorised;
b) is related to pure credit and foreign exchange market risk;
c) is characterised by a non-linear relationship of credit and foreign exchange market risk components;
d) is influenced by the general exchange rate risk; and
e) may arise from conduct-related risk.

1. Forbhreathnú

Teideal	Rialáil

Ceanglais
Foinse	Ceanglas

Caighdeáin
Foinse	Ceanglas

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