Own funds: Difference between revisions
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''Bank prudential management'' | ''Bank prudential management''. | ||
Broadly speaking, in bank funding and capital management, 'own funds' means the bank's own capital. | Broadly speaking, in bank funding and capital management, 'own funds' means the bank's own capital. | ||
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* [[Capital adequacy]] | * [[Capital adequacy]] | ||
* [[Capital Requirements Regulation]] | * [[Capital Requirements Regulation]] | ||
* [[Capital structure]] | |||
* [[Common Equity Tier 1]] (CET1) | * [[Common Equity Tier 1]] (CET1) | ||
* [[Eligible liabilities]] | * [[Eligible liabilities]] | ||
Latest revision as of 04:20, 21 July 2022
Bank prudential management.
Broadly speaking, in bank funding and capital management, 'own funds' means the bank's own capital.
Own funds are a very stable source of funding, because there is either no contractual obligation to repay them, or only a limited obligation.
Other sources of the bank's funding are 'borrowed' funds.
The Capital Requirements Regulation defines a bank's own funds as the sum of its Tier 1 capital and Tier 2 capital.
In other contexts, the term 'own funds' is also used in a narrower sense, limited - for example - to the bank's equity capital (CET1).
