Delivery risk and Funding risk: Difference between pages

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1.
''Bank funding''
In the bank liquidity and funding context, funding risk arises in the context of illiquid asset positions.
In this situation, funding risk means the risk of inability to obtain the necessary funding for the illiquid asset positions on the expected terms and when required.
2.
''Pensions funding''
In the pensions context, funding risk arises in the context of defined benefit pensions schemes, especially ones in deficit.
In this context, funding risk means the obligation to make additional contributions to the pension fund, to make up shortfalls.


The risk, on a payment date when each party has an obligation to make a payment, that one party will make its required payment but the other party will fail to do so.


== See also ==
== See also ==
* [[Risk]]
* [[CFP]]
* [[Concentration risk]]
 
* [[Defined benefit pension scheme]]
* [[Deficit]]
* [[Flighty]]
* [[Funding]]
* [[Funding concentration risk]]
* [[Funding liquidity risk]]
* [[Funding management]]
* [[Funding ratio]]
* [[Illiquid]]
* [[Liquidity risk]]
* [[MCT]]
* [[Net Stable Funding Ratio]]
* [[Own funds]]
* [[Pensions risk]]
* [[Stability]]
* [[Sticky]]

Revision as of 19:14, 5 September 2017

1.

Bank funding

In the bank liquidity and funding context, funding risk arises in the context of illiquid asset positions.

In this situation, funding risk means the risk of inability to obtain the necessary funding for the illiquid asset positions on the expected terms and when required.


2.

Pensions funding

In the pensions context, funding risk arises in the context of defined benefit pensions schemes, especially ones in deficit.

In this context, funding risk means the obligation to make additional contributions to the pension fund, to make up shortfalls.


See also