Streamline risk distribution processes for financial and corporate assets using risk-free MRPA contracts, while enabling real-time collaboration across internal bank teams and participant banks.
Banks or Financial Institutions (FI) use risk participation when working with importers and exporters to ensure that the international transaction cycle continues uninterrupted. Risk participation allows an FI to transfer its interest in a loan/exposure/risk associated with that loan to another financial institution. A Master Risk Participation Agreement (MRPA) is the legal agreement executed between a lender and a participant which defines the rights, duties and obligations of the originating lender and the participant. The agreement will also define the participant’s rights between the participant and the originating lender, including the participant’s rights to make decisions or give the lender instructions or directions regarding the loan between the lender and the borrower.
Some of the challenges in the risk distribution process include: