The article insights a valuable contribution to the resilience of the entire financial system. Much of the concentration is on the small number of market players, regulators and participants who need to have better risk management systems. It also discusses the role and functioning of the risk management systems.

The Credit Risk Transfer (CRT) market brings out the reallocation of credit risks exposure across many financial and non-financial sectors of the economy. In fact, the emergence of a CRT market can be predictable as the basis for active supervision of acceptable risks, mitigation, offloading and distribution of unwanted risks, yield improvement, and diversification of assets which further led to the development of CRT market.

Memories of the bankruptcies of Enron, WorldCom and United Airlines have already faded. The banking world gnarled these potentially disrupting bankruptcies thanks to the key role of credit risk transfer. Credit risk occurs whenever the borrower fails to meet his contractual obligation, having an overall impact on bank's profitability, regulatory capital adequacy and solvency. In such a case banks face a variety of risks such as credit, market, interest rate, liquidity and operational. However, financing of assets being its core business, a bank is primarily exposed to credit risks and managing credit risk becomes critical for a bank.

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