European Union and Reset risk: Difference between pages

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(EU).  
''Floating interest rates - risk management - repricing risk.''


An economic and political union of 28 European member states.
Reset risk is a type of repricing risk.


The current members are: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia,  Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the United Kingdom.
Repricing risk is the risk of adverse effects resulting from changes in floating interest rates.


====Brexit====
Reset risk is the additional risk resulting from a relevant reference rate being observed on a single day - and then incorporated into a longer contractual period.
A referendum in the UK in June 2016 resulted in a vote to leave the EU.  


====Areas of work===
The three areas which form the union are:


*The European Community
"There is [  ] no ‘reset risk’ in Risk Free Rates (RFRs) since the interest rate coupon will be reflective of market observations over the entire interest rate period, not just on the reset date."
*Common Foreign and Security Policy
*Police and Judicial co-operation in Criminal Matters


====EU law====
''Pieter Bierkens, former chair of Australia's LIBOR reform working group - The Treasurer, December 2023 Issue 4, p30.''
The legislature of the EU includes the European Parliament, the Council of the European Union and the European Commission.


The EU's judicial bodies are the European Court of Justice which includes the General Court and the Court of Auditors.


== See also ==
* [[Assets]]
* [[Behavioural gap]]
* [[Contractual gap]]
* [[Coupon]]
* [[Exposure]]
* [[Floating rate]]
* [[Gap report]]
* [[Gap risk]]
* [[Interest]]
* [[Interest gap ]]
* [[Interest rate]]
* [[Interest rate risk]]
* [[Liabilities]]
* [[Liquidity gap]]
* [[Maturity ladder]]
* [[Rate reset]]
* [[Repricing ]]
* [[Repricing risk]]
* [[Risk-free rates]]  (RFRs)
* [[Risk management]]


== See also ==
[[Category:Financial_products_and_markets]]
* [[Brexit]]
[[Category:Identify_and_assess_risks]]
* [[BUL]]
* [[CEBR]]
* [[Direct effect]]
* [[Directive]]
* [[euro zone]]
* [[European Commission]]
* [[European Community ]]
* [[European Economic and Monetary Union]]
* [[European Economic Area]]
* [[European Investment Bank]]
* [[European Parliament]]
* [[Official Journal of the European Union]]
* [[Regulation]]

Latest revision as of 22:03, 4 December 2023

Floating interest rates - risk management - repricing risk.

Reset risk is a type of repricing risk.

Repricing risk is the risk of adverse effects resulting from changes in floating interest rates.

Reset risk is the additional risk resulting from a relevant reference rate being observed on a single day - and then incorporated into a longer contractual period.


"There is [ ] no ‘reset risk’ in Risk Free Rates (RFRs) since the interest rate coupon will be reflective of market observations over the entire interest rate period, not just on the reset date."

Pieter Bierkens, former chair of Australia's LIBOR reform working group - The Treasurer, December 2023 Issue 4, p30.


See also

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