Glossary of the CCR

Het ABC van het RKO

Borrower

A synonym for debtor. This is the counterparty unconditionally obliged to make repayments arising from an instrument (a credit agreement/a leasing agreement).

Counterparty

A counterparty is a person who has a direct role in the credit or leasing contract: creditor, debtor, ...

Credit beneficiary

The recipient of credit is considered the credit beneficiary. A synonym for borrower or debtor.

Credit institution

Banks and savings banks are credit institutions. These are undertakings whose activities consist of accepting deposits or other repayable funds from the public, on the one hand, and extending credit, on the other hand. Together with leasing companies, credit institutions are referred to as “lenders”.

Credit risk

The risk of a counterparty being unable to make contractually required payments.

Creditor (see also lender)

The counterparty bearing the credit risk of an instrument (a credit agreement/a leasing agreement).

Debtor (see also borrower)

The counterparty unconditionally obliged to make repayments arising from an instrument (a credit agreement/a leasing agreement).

Default

Default is failure to meet, or meet in full, payment obligations.

Default occurs when:

  • the credit institution or leasing company considers it unlikely that the borrower will fully discharge its credit obligations without any action being taken, such as the realisation of collateral (e.g. a mortgage, pledge or personal guarantee);
  • the borrower is more than 90 days past due in meeting a significant payment obligation to the credit institution, its parent company or any of its subsidiaries.

Financial leasing company

A company specialising in finance leasing. Leasing companies are authorised in accordance with Article 2 §1 of Royal Decree No 55 of 10 November 1967 regulating the legal status of companies specialising in finance leasing. Together with credit institutions, leasing companies are referred to as “lenders”.  Only “financial” leasing companies are reporting agents for purposes of the CCR.

Instrument (or credit agreement)

A provision allowing a debtor (borrower) to receive funds from a creditor (lender/leasing company). A synonym for credit agreement/leasing agreement.

Lender

A synonym for creditor. This is the counterparty bearing the credit risk of an instrument (a credit agreement/a leasing agreement), with the exception of a credit protection provider.

Protection provider (guarantor)

The counterparty that provides protection against a contractually agreed adverse credit event and bears the credit risk of the adverse credit event.

Reporting agent (CCR)

Lenders (creditors) required to submit (or report) information to the CCR, namely:

  • credit institutions established in Belgium that have been authorised by the National Bank of Belgium in its capacity as the supervisory authority for the banking sector; this category includes both Belgian branches of foreign institutions and institutions incorporated under Belgian law;
  • leasing (also called lease financing) companies established in Belgium and authorised by the Federal Public Service (FPS) for the Economy.

Reporting agents are defined in the Act of 28 November 2021 on the organisation of a Corporate Credit Register.