Own funds: Difference between revisions
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imported>Doug Williamson (Remove surplus link.) |
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* [[Borrowed funds]] | * [[Borrowed funds]] | ||
* [[Capital]] | * [[Capital]] | ||
* [[Capital adequacy]] | |||
* [[Capital Requirements Regulation]] | * [[Capital Requirements Regulation]] | ||
* [[CET1]] | * [[CET1]] | ||
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* [[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]] | |||
Revision as of 20:19, 15 October 2021
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).
