Banking book and Working capital: Difference between pages

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''Bank supervision - capital adequacy.''
Working capital is normally defined as the excess of current assets over current liabilities.


For capital adequacy calculation purposes, a bank's banking book includes any instruments which are not in its trading book.
It represents the day to day capital requirement to continue the operations of the organisation.
 
This working capital requirement has to be financed by borrowings, shareholders' funds, or a combination of both of them.




== See also ==
== See also ==
* [[Basel III]]
* [[Capital]]
* [[Capital adequacy]]
* [[Cash flow statement]]
* [[Interest rate risk]]
* [[Efficiency ratio]]
* [[IRRBB]]
* [[Liquidity management]]
* [[Market risk]]
* [[Over trading]]
* [[MCRMR]]
* [[Working capital management]]
* [[Trading book]]

Revision as of 16:47, 20 June 2015

Working capital is normally defined as the excess of current assets over current liabilities.

It represents the day to day capital requirement to continue the operations of the organisation.

This working capital requirement has to be financed by borrowings, shareholders' funds, or a combination of both of them.


See also