LOSS EQUIVALENT CLASS title: loss equivalent class (IS-B-RA-CL) (SAP Library - Glossary)
LOSS EQUIVALENT CLASS category: Default Risk and Limit System (IS-B-RA-CL)
LOSS EQUIVALENT CLASS explained:
LEQ class
In the calculation of the expected exposure, expected loss and country value-at-risk, the loss equivalent class categorizes the part of a free external commitment that is expected to be drawn upon at the time the business partner defaults.
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