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21:19 May 1, 2008
German to English translations [PRO] Bus/Financial - Finance (general)
German term or phrase:Einstandsrisiko
Bank A has issued a letter of comfort for Bank B (its subsidiary). This says that Bank A will assume the liabilities of Bank B under certain circumstances. In its annual report, Bank A states that it is only required by law to report the existence of the letter of comfort, but instead it is providing additional information about transactions that could cause Bank B to be subject to an "Einstandsrisiko."
I understand this to be the risk that Bank B will get into a situation that will result in Bank A having to stand good for Bank B's liabilities - is that right? What is a concise term for this type of risk?
I thought the same thing. Here is what the sentence says:
"Wir erläutern ergänzend die Strukturen, aus denen sich Einstandsrisiken für die Bank B ergeben können."
I may have to flag this particular question when I hand the translation in, but maybe I can at least get a better idea of a translation for Einstandsrisiken.
Are you sure you read the last part correctly and that it is B that could be exposed to the Einstandsrisiko? That doesn't make much sense since it was A that issued the comfort letter (einstehend für B) and is guaranteeing A's liability.
Automatic update in 00:
1 hr confidence:
Explanation: if, as it seems, this is an Austrian text.
swisstell Italy Local time: 22:54 Meets criteria Specializes in field Native speaker of: German PRO pts in category: 175
Notes to answerer
Asker: That seems reasonable, although it's not an Austrian text.