Own funds: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Add link.) |
imported>Doug Williamson (Add links.) |
||
Line 20: | Line 20: | ||
* [[Capital Requirements Regulation]] | * [[Capital Requirements Regulation]] | ||
* [[CET1]] | * [[CET1]] | ||
* [[Eligible liabilities]] | |||
* [[Equity]] | * [[Equity]] | ||
* [[Funding]] | * [[Funding]] | ||
Line 25: | Line 26: | ||
* [[Funding risk]] | * [[Funding risk]] | ||
* [[MCT]] | * [[MCT]] | ||
* [[MREL]] | |||
* [[Net stable funding ratio]] | * [[Net stable funding ratio]] | ||
* [[Stability]] | * [[Stability]] |
Revision as of 13:40, 10 November 2016
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).