Kreditausfall

loan default

noun kreh-DEET-ows-fal Rare

Also means

credit default

Usage Note

Kreditausfall occurs when a borrower fails to repay a loan as agreed, causing a loss for the lender. Banks provision for Kreditausfälle by setting aside Risikorückstellungen (risk reserves).

Examples

"Die Bank bildete Rückstellungen für mögliche Kreditausfälle."

Natural Translation

The bank set aside provisions for possible loan defaults.

Literal Translation

The bank formed provisions for possible credit-defaults.

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