I work as a corporate credit analyst at M&G and my job is to assess the credit risk of a borrower, as measured by its expected loss. OK, that is the theory; but in practice, what makes credit possible to begin with? The answer is in the word itself: credit. And although I know the answer, I decided to test my new Copilot assistant.

“The English word ‘credit’ comes from the Latin word creditum, which means ‘a loan, or something entrusted to another’. It is the past participle of the Latin verb credere, meaning ‘to believe and to trust’. Therefore, the root concept of credit is based on trust and belief in someone’s ability to fulfil an obligation, often in a financial context.”

Well done, Copilot! Not only is it an accurate answer, but it is better worded than mine. So credit is possible when there is trust; without trust, there is no credit.

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