Monetary financial institution and Prepayment: Difference between pages

Revision as of 20:26, 3 July 2017

1. Banking.

The non-contractual early repayment by bank customers of, for example, fixed rate mortgages.

2. Accounting.

An amount paid in advance for a financial benefit, represented by an asset in the organisation's balance sheet.

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-Monetary Financial Institutions (MFIs) are central banks and other institutions whose business is to take deposits and/or close substitutes for deposits from entities other than MFIs and, for their own account (at least in economic terms), to grant credits and/or make investments in securities.
+. ''Banking''.
+The non-contractual early repayment by bank customers of, for example, fixed rate mortgages.
-In many contexts, MFIs ''exclude'' central banks.
-For example, the Bank of England publishes statistics under the heading "Monetary financial institutions (excluding central bank) balance sheet".
+. ''Accounting''.
-But conversationally and informally central banks are taken as being "MFIs".
+An amount paid in advance for a financial benefit, represented by an asset in the organisation's balance sheet.
-Here as elsewhere, consistency and transparency of definitions are essential for the avoidance of doubt.
+== See also ==
-==See also==
+* [[Bookkeeping]]
-*[[Bank of England]]
+* [[Early Repayment Charge]]
-*[[Central bank]]
+* [[Extension risk]]
-*[[Credit institution]]
+* [[Prepayment risk]]
-* [[Financial]]
+* [[Prepayments]]
-*[[Institution ]]
-*[[Institutional ]]
-[[Category:Long_term_funding]]