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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* [[MCT]] | * [[MCT]] | ||
* [[MREL]] | * [[MREL]] | ||
* [[Net | * [[Net Stable Funding Ratio]] | ||
* [[Stability]] | * [[Stability]] | ||
* [[Sticky]] | * [[Sticky]] | ||
* [[Tier 1]] | * [[Tier 1]] | ||
* [[Tier 2]] | * [[Tier 2]] | ||
Revision as of 11:59, 17 November 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 also used in a narrower sense, limited - for example - to the bank's equity capital (CET1).
