Credit risk

Credit risk is the risk that a counterparty will not be able to meet its obligations in full when due. The Group is primarily exposed to credit risk through its loan portfolio, securities portfolio, guarantees, commitments and other financial derivative portfolio.

Credit risk management at VTB includes establishing limits in relation to single borrower, groups of borrowers, industries, regions and foreign countries, which are regularly reviewed by VTB Risk Department and approved by the Credit Committee.