COREALCREDIT BANK AG
COREALCREDIT BANK AG
COREALCREDIT BANK AG
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SUMMARY<br />
The following constitutes the summary (the "Summary") of the essential characteristics and risks<br />
associated with the Issuer and the Notes to be issued under the Programme. This Summary<br />
should be read as an introduction to this Prospectus. Any decision by an investor to invest in the<br />
Notes should be based on consideration of this Prospectus as a whole, including the documents<br />
incorporated by reference, any supplements thereto and the relevant Final Terms. Where a claim<br />
relating to the information contained in this Prospectus, including the documents incorporated by<br />
reference, any supplements thereto and the relevant Final Terms is brought before a court, the<br />
plaintiff investor might, under the national legislation of such court, have to bear the costs of<br />
translating the Prospectus, any documents incorporated by reference, any supplements thereto<br />
and the relevant Final Terms before the legal proceedings are initiated. Civil liability will be<br />
attached to the Issuer on the basis of this summary only if this Summary is misleading, inaccurate<br />
or inconsistent when read together with the other parts of this Prospectus.<br />
The following Summary does not purport to be complete and is taken from and qualified in its<br />
entirety by the remainder of this Prospectus and, in relation to the terms and conditions of any<br />
particular Tranche of Notes, the applicable Final Terms.<br />
SUMMARY REGARDING RISK FACTORS<br />
Like other market participants, <strong>COREALCREDIT</strong> is exposed to certain risks in connection with its<br />
business activities, the realisation of which might ultimately lead to <strong>COREALCREDIT</strong>'s inability to<br />
fulfil its obligations, at all or in due time, under any issue of securities.<br />
Risk Factors Regarding the Issuer<br />
Credit Risk<br />
<strong>COREALCREDIT</strong> is exposed to credit risk, i.e. the loss in value, or alternatively partial or complete<br />
write-down, of a receivable as a result of default or deterioration in the creditworthiness of a<br />
counterparty. Credit risk also comprises counterparty risk, country risk, collateral risk, settlement<br />
risk, and issuer risk.<br />
Market Risk<br />
Market risk is related to the risk of a loss due to the volatility of market prices of financial<br />
instruments. It includes among others the risk of potential loss arising by changes in market<br />
conditions, i.e. interest rate risk, credit spread risk and exchange-rate risk, or parameters which<br />
influence prices (volatilities, correlations).<br />
Liquidity Risk and Market Liquidity Risk<br />
The Issuer is exposed to liquidity risk, i.e. the risk that the Issuer is unable to meet its current and<br />
future payment commitments, or is unable to meet them on time (solvency or funding risk). In<br />
addition, the risk exists for the Issuer that inadequate market liquidity will prevent the Issuer from<br />
selling trading positions at short notice or hedging them, or that it can only dispose of them at a<br />
lower price (market-liquidity risk).<br />
Liquidity risk can arise in various forms. It may happen that on a given day the Issuer is unable to<br />
meet its payment commitments and then has to procure liquidity at short notice in the market on<br />
expensive conditions.<br />
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