Attractiveness of PCRI to Mitigate Credit Risk Increases

In 2021, the IACPM partnered for a second time with ITFA (International Trade and Forfaiting Association) to conduct a periodic survey on Private Credit Risk Insurance (PCRI), excluding ECA cover.

The survey focuses on current practices for PCRI policies eligible as Basel-compliant guarantees and used by lenders as a credit risk mitigation tool to release capital or increase lending capacity at single loan/single borrower level.

52 IACPM and ITFA member firms participated, including 48 banks, four development banks, multilateral investment agency or similar institution. 87% of the participating banks are active users of PCRI; more than half have a total balance sheet size above USD 500 Billion, representing a majority of European AIRB banks.

Results enable firms to confidentially benchmark PCRI practices with those of other leading financial firms and inform the discussion with the most relevant prudential policy makers.  Please inquire to find out if your firm participated.

Click here for an Executive Summary of survey findings and a selection of high level results.

Select findings from the 2019 survey on the topic can be accessed here.