legal risk

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Legal risk
Legal and regulatory risk: Sometimes governments change the law in a way that adversely affects a bank's position.
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This article uses material from Wikipedia® and is licensed under the GNU Free Documentation License

European Central Bank DictionaryDownload this dictionary
legal risk
The risk of loss because of the unexpected application of a law or regulation or because a contract cannot be enforced.

Copyright © 2006, European Central Bank, Frankfurt am Main, Germany. This information may be obtained free of charge through the ECB's website.

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