Funding risk and Netting centre: Difference between pages

Revision as of 08:16, 24 May 2015

An essential part of a multilateral netting system.

The netting centre acts as a counterparty to all of the participants in the multilateral netting system.

In a group of companies, the netting centre is usually operated by the central or regional treasury centre.

The netting centre typically handles all foreign exchange exposures as well as foreign exchange trading.

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+An essential part of a multilateral netting system.
-''Bank funding.''
+The netting centre acts as a counterparty to all of the participants in the multilateral netting system.
-In the bank liquidity and funding context, funding risk arises in the context of illiquid asset positions.
+In a group of companies, the netting centre is usually operated by the central or regional treasury centre.
-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.
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-''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.
+The netting centre typically handles all foreign exchange exposures as well as foreign exchange trading.
 == See also ==
-* [[CFP]]
+* [[Counterparty]]
-* [[Concentration risk]]
+* [[Multilateral netting]]
-* [[Defined benefit pension scheme]]
+* [[Multilateral net settlement system]]
-* [[Deficit]]
+* [[Netting]]
-* [[Flighty]]
+* [[Payments and payment systems]]
-* [[Funding]]
-* [[Funding liquidity risk]]
-* [[Funding management]]
-* [[Funding ratio]]
-* [[Illiquid]]
-* [[Liquidity risk]]
-* [[MCT]]
-* [[Net stable funding ratio]]
-* [[Own funds]]
-* [[Pensions risk]]
-* [[Stability]]
-* [[Sticky]]