Off balance sheet risk
From ACT Wiki
1. Liquidity and funding risk in banks.
Off balance sheet sources of liquidity risks for banks include items which might cause demands for additional funding in the future. These include:
- Contingent liabilities such as guarantees.
- Undrawn lending facilities.
- Derivative instruments.
- Securitisation special purpose vehicles.
2.
Any risks to an organisation arising from events, contingencies or relationships not recorded in the organisation's balance sheet.
