Off balance sheet risk: Difference between revisions

From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson
(Create the page. Sources: linked pages.)
 
imported>Doug Williamson
(Generalise second definition.)
Line 10: Line 10:
2.
2.


Any risks arising from events, contingencies or relationships not recorded in an entity's balance sheet.
Any risks to an organisation arising from events, contingencies or relationships not recorded in the organisation's balance sheet.





Revision as of 12:43, 14 August 2016

1. Liquidity and funding risk in banks.

Off balance sheet sources of liquidity risks for banks include items which might cause demands for additional funding in the future. These include:

  • Contingent liabilities such as guarantees.
  • Undrawn lending facilities.
  • Derivative instruments.
  • Securitisation special purpose vehicles.


2.

Any risks to an organisation arising from events, contingencies or relationships not recorded in the organisation's balance sheet.


See also