- A technique used mostly by bankers to allow several other banks to share the risks and the returns of a financial transactions, including the funding of the transaction. The principal contract between the originating bank and the borrower remains unaffected, the sub-participation a contract between the participating banks and the originating bank. If the sub-participants also provide funding to the originating bank, it is funded risk participation. If the sub-participant bank undertake the credit risk but do not fund the transaction, it is unfunded risk participation. See also participation.