Run and Security: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Add link.)
 
imported>Doug Williamson
(Add Definition 2 relating to forms of credit risk security other than the pledging of assets, and consequential changes to numbering other definitions.)
 
Line 1: Line 1:
''Banking''.
1.  


A run on a bank or other financial institution is a situation where a large number of depositors withdraw their funds at the same time.  
Assets pledged by a borrower, as additional protection for the lender's interest.


A run will very quickly threaten the liquidity of the bank, and ultimately its survival.  
For example a residential mortgage loan, for which the security is the residential property mortgaged to the lender.


Runs can be self-perpetuating once they have begun, as the run itself causes further loss of confidence in the institution.


2.


Sometimes known as a ''liquidity run''.
Other improvements to the legal or commercial position of a lender or another party, particularly in relation to credit risk.




==See also==
3.
*[[Bank]]
 
*[[Liquidity]]
A tradable legal claim upon the assets of the issuer of the security. 
*[[Liquidity fee]]
 
*[[Liquidity risk]]
Examples of traded securities include shares and bonds.
*[[Maturity transformation]]
 
*[[Redemption gate]]
 
*[[Stability]]
4.
 
Safety, including both physical safety and - for example - the confidentiality of information.
 
 
5.
 
Systems and procedures to improve safety. 
 
Including for example both physical access controls and electronic controls such as encryption and passwords.
 
 
== See also ==
* [[Alienation of assets]]
* [[Bells and whistles]]
* [[Bond]]
* [[Bought deal]]
* [[Charge]]
* [[Collateral]]
* [[Collateral agreement]]
* [[Deep discount issue]]
* [[Deep market]]
* [[Deregulation]]
* [[Dual currency bond]]
* [[Filter rule]]
* [[Financial instrument]]
* [[Firm bid/Firm offer]]
* [[Fixed charge]]
* [[Floating charge]]
* [[Insider dealing]]
* [[Investment bank]]
* [[Issue price]]
* [[Issuer]]
* [[Issuing house]]
* [[Listed security]]
* [[Listing]]
* [[Medium term notes]]
* [[Mortgage ]]
* [[Negative pledge]]
* [[Non-callable]]
* [[Offer for sale]]
* [[Open-ended investment company ]]
* [[Over the counter]]
* [[Principal value]]
* [[Private placement]]
* [[Promissory note]]
* [[Prospectus]]
* [[Quotation/Quote]]
* [[Registered security]]
* [[Safekeeping]]
* [[Secured creditor]]
* [[Secured debt]]
* [[Securitisation]]
* [[Share]]
* [[Stock]]
* [[Traded option]]
* [[Tranche]]
* [[Undated]]
* [[Undervalued]]
* [[Underwriting]]
* [[Unsecured debt]]

Revision as of 12:24, 21 March 2015

1.

Assets pledged by a borrower, as additional protection for the lender's interest.

For example a residential mortgage loan, for which the security is the residential property mortgaged to the lender.


2.

Other improvements to the legal or commercial position of a lender or another party, particularly in relation to credit risk.


3.

A tradable legal claim upon the assets of the issuer of the security.

Examples of traded securities include shares and bonds.


4.

Safety, including both physical safety and - for example - the confidentiality of information.


5.

Systems and procedures to improve safety.

Including for example both physical access controls and electronic controls such as encryption and passwords.


See also