(Difference between pages)
imported>Doug Williamson |
imported>Administrator |
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| ''Bank regulation''.
| | Owner earnings are defined briefly as: |
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| (LCR).
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| The LCR is a requirement under Basel III for a bank to hold high-quality liquid assets (HQLAs) sufficient to cover 100% of its net cash requirements over 30 days.
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| This requirement has been implemented in stages from January 2015, to reach the 100% requirement by January 2019.
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| It reduces the value to a bank of cash deposit of less than 30 days tenor because they are only worth the income on the HQLAs if a bank forecasts no short term cash receipts to cover repayment.
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| The purpose of this requirement is to ensure that banks can manage stressed market conditions, under which the bank is assumed to suffer substantial outflows of the cash previously deposited with it.
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| | Earnings after tax; |
| | ADD |
| | Depreciation and certain other non-cash charges; |
| | LESS |
| | Capital expenditure requirements; |
| | LESS |
| | Working capital requirements. |
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| == See also == | | == See also == |
| * [[Basel III]] | | * [[Earnings]] |
| * [[Net stable funding ratio]]
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| * [[Cash investing in a new world]]
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| * [[Leverage ratio]]
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| * [[Liquidity buffer]]
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| * [[Liquidity risk]]
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| * [[LR]]
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| * [[Survival period]]
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| [[Category:Compliance_and_audit]]
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| [[Category:Liquidity_management]]
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Revision as of 14:20, 23 October 2012
Owner earnings are defined briefly as:
Earnings after tax;
ADD
Depreciation and certain other non-cash charges;
LESS
Capital expenditure requirements;
LESS
Working capital requirements.
See also
