Own funds: Difference between revisions
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imported>Doug Williamson (Expand. Sources: CRR, Bank of England http://www.bankofengland.co.uk/publications/Documents/quarterlybulletin/2013/qb130302.pdf) |
imported>Doug Williamson (Expand and add link.) |
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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. | In other contexts, the term 'own funds' is used in a narrower sense, limited - for example - to the bank's equity capital (CET1). | ||
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* [[Capital]] | * [[Capital]] | ||
* [[Capital Requirements Regulation]] | * [[Capital Requirements Regulation]] | ||
* [[CET1]] | |||
* [[Equity]] | * [[Equity]] | ||
* [[Funding]] | * [[Funding]] | ||
Revision as of 12:54, 3 September 2016
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 used in a narrower sense, limited - for example - to the bank's equity capital (CET1).
