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Concessionality

Financial advantage relative to reference terms

Banking & balance-sheet management

Short definition

The extent to which financing terms are more favourable than a comparable commercial benchmark. Support may take the form of lower pricing, deferred payments, a longer maturity or risk protection. Its valuation requires an explicit reference price and denominator. Public capital share and the size of a first-loss tranche use different calculations.

risk atlas

Knowledge map

Related analyses

Primary sources