Funding and Gross domestic product: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Update links.)
 
imported>Doug Williamson
(adding link to Gross National Income)
 
Line 1: Line 1:
1.
(GDP).  


Medium to longer term borrowing by a non-financial undertaking to meet its operational needs.
A measure of the monetary value of total output of finished goods and services produced using factors of production located in the country whose GDP is being measured in the time period over which it is being measured.  


It is commonly measured in three ways.
#An output measure: the value of goods and services produced by all sectors of the economy, often taken as agriculture, manufacturing, energy, construction, the service sector and government.
#An expenditure measure: the value of the goods and services purchased by households and governments, investment in machinery and buildings and exports minus imports.
#An income measure: the value of income generated mostly in terms of profits and wages.


<span style="color:#4B0082">'''''Fund early'''''</span>


:"... the ease with which treasurers have secured debt funding may start to lessen.
In principle the three methods should produce the same answer, but they are each estimated in ways that are practical but not quite fitting the theory.  


:As panellists pointed out, the situation calls to mind the ACT's mantra: fund early, fund often and fund long."
Indeed how the theory should be applied is often disputable.  


:''The Treasurer magazine, December 2018 / January 2019, p13''
Some of this is discussed in the article on [[inflation]].




 
GDP equivalents can also be estimated for regions, or indeed the entire world.
2.
 
More generally, the provision or the sources of finance necessary for the continuing operation of an undertaking.
 
In this context, sources of finance for non-financial organisations would include, bank lenders, bondholders and shareholders.
 
 
3.
 
More broadly, sources of finance including certain other creditors, as well as bank lenders, bondholders and shareholders.
 
 
4. ''Pensions.''
 
The provision in advance for future liabilities in a defined benefit pension scheme by the accumulation of assets.
 
 
5. ''Banking.''
 
In the banking context, sources of funding include retail customer deposits and equity, as well as wholesale and longer term borrowings.
 
Banks' funding - very broadly - can be categorised as 'own funds' or 'borrowed funds'.




== See also ==
== See also ==
* [[Accrued benefits funding method]]
* [[Double dip]]
* [[Available Stable Funding]]
* [[Gross national product]]
* [[Borrowed funds]]
* [[Recession]]
* [[Capital]]
* [[Inflation]] -  see 'Points to note'
* [[Defined benefit pension scheme]]
* [[Black economy]]
* [[ESG funding]]
* [[Gross National Income]]
* [[FFL]]
* [[Flighty]]
* [[Funding concentration risk]]
* [[Funding level]]
* [[Funding liquidity risk]]
* [[Funding management]]
* [[Funding method]]
* [[Funding ratio]]
* [[Funding risk]]
* [[Funding stack]]
* [[Funds]]
* [[Liquidity]]
* [[Loan to stable funding ratio]]
* [[Net Stable Funding Ratio]]
* [[Prospective benefits funding method]]
* [[Own funds]]
* [[Required Stable Funding]]
* [[Scheme Specific Funding]]
* [[Stability]]
* [[Statement of funding principles]]
* [[Statutory funding objective]]
* [[Sticky]]
* [[Term out]]
 
 
==External link==
[http://www.afponline.org/publications-data-tools/reports/guides/global-liquidity-guides/Detail/short-term-borrowing Association for Finance Professionals (AFP) Guide to Global Short Term Borrowing]
 
[[Category:Corporate_finance]]
[[Category:Long_term_funding]]

Revision as of 21:47, 9 July 2018

(GDP).

A measure of the monetary value of total output of finished goods and services produced using factors of production located in the country whose GDP is being measured in the time period over which it is being measured.

It is commonly measured in three ways.

  1. An output measure: the value of goods and services produced by all sectors of the economy, often taken as agriculture, manufacturing, energy, construction, the service sector and government.
  2. An expenditure measure: the value of the goods and services purchased by households and governments, investment in machinery and buildings and exports minus imports.
  3. An income measure: the value of income generated mostly in terms of profits and wages.


In principle the three methods should produce the same answer, but they are each estimated in ways that are practical but not quite fitting the theory.

Indeed how the theory should be applied is often disputable.

Some of this is discussed in the article on inflation.


GDP equivalents can also be estimated for regions, or indeed the entire world.


See also