Prepayment risk and Shared Service Centre: Difference between pages

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Prepayment risk is a form of interest rate risk for a financial institution.
(SSC). Shared Services provide a service by one part of an organisation or group where previously the service had been found in more than one part of the organisation or group. The funding and resourcing of the service is shared so the providing department becomes an internal service provider.  
 
It arises from the non-contractual early repayment by customers of, for example, fixed rate mortgages.
 
 
The financial institution therefore has an interest rate exposure for the - as yet unknown - prepayments by customers of its fixed interest rate product.
 
 


== See also ==
== See also ==
* [[Interest rate risk]]
* [[Outsourcing]]
* [[Pipeline risk]]
* [[RMBS]]


[[Category:Manage_risks]]

Revision as of 14:20, 23 October 2012

(SSC). Shared Services provide a service by one part of an organisation or group where previously the service had been found in more than one part of the organisation or group. The funding and resourcing of the service is shared so the providing department becomes an internal service provider.

See also