​KembaraXtra- Financial Terms- Aggregation refers to the process of netting or combining assets and liabilities relating to a specific counterparty.


Aggregation is commonly used in banking, finance, and risk management to simplify exposure calculations between parties.


By offsetting assets against liabilities, financial institutions can better evaluate their actual net risk position.


This process helps improve financial reporting, risk analysis, and management of counterparty exposure.


Aggregation plays an important role in derivative markets, lending arrangements, and financial regulation.