Credit risk does not take the form of

Credit risk may take the following forms: In the case of direct lending, principal/and or interest amount may not be repaid. In the case of guarantees or letters of credit, funds may not be forthcoming from the constituents upon crystallisation of the liability. In the case of treasury operations, the payment or series of payments due from the counter parties under the respective contracts may not be forthcoming or ceases. In the case of securities trading businesses, funds/securities settlement may not be effected. In the case of cross-border exposure, the availability and free transfer of foreign currency funds may either cease or restrictions may be imposed by the sovereign.