Funding risk definition

Funding risk means the risk that the institution will not have stable sources of funding in the medium and long term, resulting in the current or prospective risk that it cannot meet its financial obligations, such as payments and collateral needs, as they fall due in the medium to long term, either at all or without increasing funding costs unacceptably.

Funding risk means the risk the bank lacks stable funding sources in both medium and long-term period, that would result into the current or future risk the bank fails to meet the financial obligation that mature in either medium or long-term period, or without increasing the funding costs;

Examples of Funding risk in a sentence

• Funding risk is the risk that the Company may not be able to raise equity financing in a timely manner and on terms acceptable to management.

• Funding risk is the risk that market conditions will impact the Company’s ability to raise capital through equity markets under acceptable terms and conditions.

• Funding risk arises when the necessary liquidity to fund illiquid asset positions cannot be obtained at the expected terms and when required.

• Funding risk strategies shall take into account the liquidity status in the market and how unexpected changes would affect the company’s risks.

• Funding risk relates to the potential inability to raise additional capital or liquidity when required in order to maintain the resilience of the balance sheet.

• Funding risk is the risk that funding considered to be sustainable, and therefore used to fund assets, is not sustainable over time.

• Funding risk management centres on the ability to re-finance or raise new debt at a future time at acceptable pricing (fees and borrowing margins) and maturity terms of existing loans and facilities.

• Funding risk Unitaid’s funding is dependent on a relatively small number of donors.

• Funding risk is the risk that the Company may not be able to raise financing in a timely manner and on terms acceptable to management.

• Funding risk is the risk of not being able to meet both expected and unexpected current and future cash outflows and collateral needs without affecting either daily operations or the financial position of Rabobank.