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.
Related Words
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