Increasing CPRI exposures are facilitating credit transactions across all asset classes, including financing related to SMEs.
Results of IACPM's biennial survey on Principles and Practices in CPM show that the function’s critical role is expanding amid a changing and uncertain economic and geopolitical environment that puts credit risk under heightened scrutiny at all firms.
Financial institutions are launching strategies to capitalize on the opportunities stemming from the low carbon economy transition.
The survey focused on current practices for CPRI policies eligible as Basel-compliant guarantees and used by banks as a CRM tool to release capital and/or increase lending capacity at single loan/single borrower level.
In 2022, risk sharing by participating banks increased to €200Bn with confirmed structural changes continuing into 2023.
While financial institutions are increasingly integrating ESG factors into core processes, there’s still a gap between aspirations and results.
The IACPM has published select findings of the 2023 survey on Linking Climate & ESG to Decision-Making and CPM.
Financial institutions have made significant progress in using new data and techniques for CPM, but challenges remain around technology, talent, and integration of climate/ESG.
Industry players across sectors and regions recognize the significance of ESG & climate risk factors for credit portfolios and are accelerating efforts.
The attractiveness of Private Credit Risk Insurance (PCRI) has grown among participants in a recent IACPM & ITFA study on current practices.