Fitch and Funding risk: Difference between pages

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''Credit rating''
1.
 
''Bank funding.''
 
In the bank liquidity and funding context, funding risk arises in the context of illiquid asset positions.
 
In this situation, funding risk means the inability to obtain the necessary funding for the illiquid asset positions on the expected terms and when required.
 
 
2.
 
''Pensions funding.''
 
In the pensions context, funding risk arises in the context of defined benefit pensions schemes, especially ones in deficit.
 
In this situation, funding risk means the obligation to make additional contributions to the pension fund, to make up shortfalls.


Fitch Ratings, a leading credit rating agency.




== See also ==
== See also ==
* [[Credit rating]]
* [[CFP]]
*[[Credit rating agency]]
* [[Concentration risk]]
 
* [[Defined benefit pension scheme]]
[[Category:Treasury_operations_infrastructure]]
* [[Deficit]]
* [[Flighty]]
* [[Funding]]
* [[Funding liquidity risk]]
* [[Funding management]]
* [[Funding ratio]]
* [[Illiquid]]
* [[Liquidity risk]]
* [[MCT]]
* [[Net stable funding ratio]]
* [[Own funds]]
* [[Pensions risk]]
* [[Stability]]
* [[Sticky]]

Revision as of 11:40, 18 August 2016

1.

Bank funding.

In the bank liquidity and funding context, funding risk arises in the context of illiquid asset positions.

In this situation, funding risk means the inability to obtain the necessary funding for the illiquid asset positions on the expected terms and when required.


2.

Pensions funding.

In the pensions context, funding risk arises in the context of defined benefit pensions schemes, especially ones in deficit.

In this situation, funding risk means the obligation to make additional contributions to the pension fund, to make up shortfalls.


See also