Lender relationship risk
Treasury - funding - liquidity - liquidity risk - relationship banking.
Considered by many to be a part of liquidity risk, the fostering of lender relationships is key to being able to raise borrowing at any time.
Banks are often the first port of call but lending by institutions forms an essential part of the lending for many firms in both public and private markets...
Lenders retain an impression of a firm from previous dealings and so issues of routine communication, keeping promises, avoiding surprises, ancillary business, loan amendments and fair pricing are all factors which can be managed in order to keep the goodwill of lenders.
Relationship banking is a technique used by many treasurers to approach this issue.
(Source - Guide to risk management - the Treasurer's Wiki.)
See also
- Ancillary business
- Bank
- Credit rating risk
- Funding
- Funding liquidity risk
- Funding risk
- Funds
- Guide to risk management
- Headroom target
- High Quality Liquid Assets (HQLAs)
- Insolvency
- Lender
- Liquidity
- Liquidity management
- Liquidity risk
- Market liquidity risk
- Market risk
- Relationship banking
- Security
- Solvency
- Stress
- Survival period
- Treasury
