Own funds: Difference between revisions

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''Bank prudential management.''
''Bank prudential management''.


Broadly speaking, in bank funding and capital management, 'own funds' means the bank's own capital.
Broadly speaking, in bank funding and capital management, 'own funds' means the bank's own capital.
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In other contexts, the term 'own funds' is used in a narrower sense, limited - for example - to the bank's equity capital (CET1).
In other contexts, the term 'own funds' is also used in a narrower sense, limited - for example - to the bank's equity capital (CET1).






== See also ==
== See also ==
* [[Borrowed funds]]
* [[Capital]]
* [[Capital]]
* [[Capital adequacy]]
* [[Capital Requirements Regulation]]
* [[Capital Requirements Regulation]]
* [[CET1]]
* [[Capital structure]]
* [[Common Equity Tier 1]]  (CET1)
* [[Eligible liabilities]]
* [[Equity]]
* [[Equity]]
* [[Funding]]
* [[Funding]]
* [[Funding liquidity risk]]
* [[Funding liquidity risk]]
* [[Funding risk]]
* [[Funding risk]]
* [[MCT]]
* [[MREL]]
* [[Net stable funding ratio]]
* [[Net Stable Funding Ratio]]
* [[Stability]]
* [[Stability]]
* [[Sticky]]
* [[Sticky]]
* [[Tier 1]]
* [[Tier 1]]
* [[Tier 2]]
* [[Tier 2]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Compliance_and_audit]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Financial_products_and_markets]]

Latest revision as of 04:20, 21 July 2022

Bank prudential management.

Broadly speaking, in bank funding and capital management, 'own funds' means the bank's own capital.

Own funds are a very stable source of funding, because there is either no contractual obligation to repay them, or only a limited obligation.

Other sources of the bank's funding are 'borrowed' funds.


The Capital Requirements Regulation defines a bank's own funds as the sum of its Tier 1 capital and Tier 2 capital.


In other contexts, the term 'own funds' is also used in a narrower sense, limited - for example - to the bank's equity capital (CET1).


See also