Own funds: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Expand. Sources: CRR, Bank of England http://www.bankofengland.co.uk/publications/Documents/quarterlybulletin/2013/qb130302.pdf) |
imported>Doug Williamson (Add link.) |
||
| (8 intermediate revisions by the same user not shown) | |||
| Line 1: | Line 1: | ||
''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. | ||
| Line 11: | Line 11: | ||
In other contexts, the term 'own funds' is used in a narrower sense, limited - for example - to the bank's equity 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 == | == See also == | ||
* [[Borrowed funds]] | |||
* [[Capital]] | * [[Capital]] | ||
* [[Capital adequacy]] | |||
* [[Capital Requirements Regulation]] | * [[Capital Requirements Regulation]] | ||
* [[Capital structure]] | |||
* [[Common Equity Tier 1]] (CET1) | |||
* [[Eligible liabilities]] | |||
* [[Equity]] | * [[Equity]] | ||
* [[Funding]] | * [[Funding]] | ||
* [[Funding liquidity risk]] | * [[Funding liquidity risk]] | ||
* [[Funding risk]] | * [[Funding risk]] | ||
* [[ | * [[MREL]] | ||
* [[Net | * [[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).
