Own funds: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Amend link.) |
imported>Doug Williamson (Remove surplus link.) |
||
| Line 25: | Line 25: | ||
* [[Funding liquidity risk]] | * [[Funding liquidity risk]] | ||
* [[Funding risk]] | * [[Funding risk]] | ||
* [[MREL]] | * [[MREL]] | ||
* [[Net Stable Funding Ratio]] | * [[Net Stable Funding Ratio]] | ||
Revision as of 20:41, 9 February 2019
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).
