Glossary entry (derived from question below)
French term or phrase:
participation en risques
English translation:
Risk participation
Added to glossary by
Duncan Moncrieff
Sep 20, 2014 11:27
9 yrs ago
4 viewers *
French term
participation en risques
French to English
Bus/Financial
Finance (general)
Bank guarantees
This is taken from a 'Convention de participation' which is transferring part of the risk of a bank guarantee onto a third party bank. The third party bank (the 'société participante') is taking on the 'participation en risques'. I have researched this and found 'risk participation' and 'risk sharing' but am not 100% sure of either term.
Proposed translations
(English)
| 3 | Risk participation |
Duncan Moncrieff
|
| 4 | risk sharing |
telefpro
|
Change log
Sep 22, 2014 10:52: Duncan Moncrieff Created KOG entry
Proposed translations
1 day 4 hrs
Selected
Risk participation
"... In the context of finance transactions, it refers to when a lender under a loan agreement sub-contracts all or part of its risk to another financial institution. The parties execute a sub-contract, called a sub-participation or participation agreement, the lender in its capacity as principal lender or grantor, the financial institution in its capacity as sub-participant or participant. There are two types:
Funded participation. The parties agree the participant will fund the grantor so it can fulfil its obligations under a drawdown request. In return, the grantor pays a fee to the participant and passes it capital and interest when these are received by it from the borrower. The risk associated with the loan is removed from the grantor's balance sheet.
...
Risk participation. The parties agree the participant will reimburse the grantor amounts unpaid by the borrower following a payment default under the loan agreement. Unlike a funded participation, the participant does not provide funds to the grantor so it can fulfil its obligations under a drawdown request.
..." (from: http://uk.practicallaw.com/1-107-7333).
Funded participation. The parties agree the participant will fund the grantor so it can fulfil its obligations under a drawdown request. In return, the grantor pays a fee to the participant and passes it capital and interest when these are received by it from the borrower. The risk associated with the loan is removed from the grantor's balance sheet.
...
Risk participation. The parties agree the participant will reimburse the grantor amounts unpaid by the borrower following a payment default under the loan agreement. Unlike a funded participation, the participant does not provide funds to the grantor so it can fulfil its obligations under a drawdown request.
..." (from: http://uk.practicallaw.com/1-107-7333).
3 KudoZ points awarded for this answer.
Comment: "Thanks"
9 mins
risk sharing
hope it helps
Peer comment(s):
| neutral |
nweatherdon
: that's the idea, but here I think it reflects something of a more formal arrangement than the principle itself.
3 mins
|
Discussion
"... In the context of finance transactions, it refers to when a lender under a loan agreement sub-contracts all or part of its risk to another financial institution. The parties execute a sub-contract, called a sub-participation or participation agreement, the lender in its capacity as principal lender or grantor, the financial institution in its capacity as sub-participant or participant. There are two types:
Funded participation. The parties agree the participant will fund the grantor so it can fulfil its obligations under a drawdown request. In return, the grantor pays a fee to the participant and passes it capital and interest when these are received by it from the borrower. The risk associated with the loan is removed from the grantor's balance sheet.
...
Risk participation. The parties agree the participant will reimburse the grantor amounts unpaid by the borrower following a payment default under the loan agreement. Unlike a funded participation, the participant does not provide funds to the grantor so it can fulfil its obligations under a drawdown request.
..." (from: http://uk.practicallaw.com/1-107-7333).
Many refs to participation (risk or funded), so why no..?