Credit Conversion Factor and Demand: Difference between pages

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imported>Doug Williamson
(Create the page. Sources: linked pages.)
 
imported>Doug Williamson
(Updated entry. Source ACT Glossary of terms)
 
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''Bank supervision - capital adequacy''.
1. ''Economics''.


(CCF).
The quantity of a particular good or service that buyers want - and are able to purchase - at any given market price.


The CCF converts an off balance sheet exposure to its credit exposure (Risk Weighted Assets) equivalent.


Off balance sheet exposures - like a guarantee - have a probability of becoming a credit exposure and shifting onto the balance sheet, for example if the guarantee is called.  
2. ''Banking''. 


Refers to deposits or loans which can be withdrawn 'on demand' without giving notice.


The CCF is an estimate of this probability.


By multiplying the CCF with the value of the guarantee or other off balance sheet exposure, you get the expected value of the credit exposure.
== See also ==
 
* [[Ceteris paribus]]
 
* [[Demand curve]]
==See also==
* [[Market mechanism]]
*[[Capital adequacy]]
* [[Price elasticity of demand]]
*[[Guarantee]]
* [[Regulation Q]]
*[[Off balance sheet risk]]
* [[Supply]]
*[[Risk Weighted Assets]]
* [[Wants]]

Revision as of 15:40, 19 November 2014

1. Economics.

The quantity of a particular good or service that buyers want - and are able to purchase - at any given market price.


2. Banking.

Refers to deposits or loans which can be withdrawn 'on demand' without giving notice.


See also