Search results
Results from the WOW.Com Content Network
Liquidity risk is a financial risk that for a ... funding cost rises by a small amount as the liquidity risk elasticity. For banks this would be measured as a spread ...
In response to liquidity risks, bank regulators agreed global standards to reduce banks' ability to engage in liquidity and maturity transformation, thereby reducing banks' exposure to runs. Traditionally, the response to this risk was a combination of deposit insurance and discount window access. The former assures depositors not to worry ...
Basel III requires banks to have a minimum CET1 ratio (Common Tier 1 capital divided by risk-weighted assets (RWAs)) at all times of: . 4.5%; Plus: A mandatory "capital conservation buffer" or "stress capital buffer requirement", equivalent to at least 2.5% of risk-weighted assets, but could be higher based on results from stress tests, as determined by national regulators.
Liquidity risk is the risk of not being able to efficiently meet present and future cash flow needs without adversely affecting daily operations. Liquidity is evaluated on the basis of the credit union's ability to meet its present and anticipated cash flow needs, such as, funding loan demand, share withdrawals, and the payment of liabilities ...
The Liquidity-at-Risk (short: LaR) is a measure of the liquidity risk exposure of a financial portfolio. It may be defined as the net liquidity drain which can occur in the portfolio in a given risk scenario. If the Liquidity-at-Risk is greater than the portfolio's current liquidity position then the portfolio may face a liquidity shortfall.
Asset and liability management (often abbreviated ALM) is the term covering tools and techniques used by a bank or other corporate to minimise exposure to market risk and liquidity risk through holding the optimum combination of assets and liabilities. [1]
A high-yield savings account offers risk-free returns, but those returns aren't as good as you think. That's because the APYs are subject to taxation, and rate cuts can make these accounts even ...
Basel II attempted to accomplish this by establishing risk and capital management requirements to ensure that a bank has adequate capital for the risk the bank exposes itself to through its lending, investment and trading activities. One focus was to maintain sufficient consistency of regulations so to limit competitive inequality amongst ...