Counterparty credit risk
Counterparty credit risk means the risk that the counterparty to a transaction could default before the final settlement of the transaction’s cash flows.
The exposure to counterparty credit risk pertains to exposures arising from derivatives, repurchase transactions, securities or commodities lending or borrowing transactions, long settlement transactions and margin lending transactions.
At the end of 2016, the Group had derivatives and repurchase transactions, and there were no transactions regarding securities or commodities lending or borrowing transactions, long settlement transactions or margin lending transactions.
The Group presents its exposure to counterparty credit risk primarily under hedging derivatives and derivatives under contracts concluded with customers and repurchase transactions.
Fair values of respective derivatives contracts, notional amounts of instruments by maturities and valuation of derivative instruments are presented in notes to the Yearly Financial Report (Note 16f).
Data on security margins and netting of receivables and liabilities under master agreements are presented in Additional Information to the Yearly Financial Report.