myrize
Joined: 25 Nov 2007
Posts: 1
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| Posted: Sun Nov 25, 2007 8:55 pm Post subject: General Mortgage Information |
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The refinancing serves on the banks of raising funds for their own lending as a business purpose.
In addition to the binding KWG prescribed proportionate use of capital can this term money deposits as their own customers from other banks by inter-bank trading, specialized lending institutions, the public sector or institutional investors are used. Apart from deposits are also recorded as a loan funds.
For the procurement of the money market and capital market question. It will be on the money market deposits from other banks or institutional market participants, or collected by the capital market issued bonds, mortgage bonds and bonds purchased. In addition, large investors in the way of factoring funds. A possible expansion of the equity base is also on the capital market.
A very modern form of refinancing, the True Sales dar. Here, a lender loans with identical maturities and the same risk to investors and bundled into verbriefter form. If the lender to a bank, the equity structure to be improved, but reduced the other, of course, the interest income from loans sold. There is a model of pure thought, as the capital adequacy ratios are generally not been exhausted. At the Hamburg Stock Exchange, a market for such assets to be securitized.
Matching conditions
Business task of the bank is to provide timely for refinancing loans awarded funds with maturities congruent to procure, which means that the one loan for the entire term credit available and appropriate other, the interest amount to a condition of the loan limit identical or longer duration.
The refinancing is aggravated by the fact that most loans during your term in the same rates, or by increasing annuities to be repaid, the recorded refinancing resources but often end of the term, and during the agreement period in the same amount available, and with interest to be served. The business betraglichen congruence between loan and refinancing tries, in a holistic view of the entire loan portfolio, for example, in a Fristen- or layers balance into account.
Deviations from these conditions have congruence in the past several German banks in economic difficulties.
Transition Task
Refinancing costs of the lending business are in a considerable degree of uncertainty about future interest rate trends in the money and capital market. This uncertainty is larger, the farther the forecasted prices in the future. Through interest rate derivatives can be tried to anticipate future developments and the risk cover.
* In the short - and medium-range, according to the expectations of the future development through maturity transformation refinancing funds in a rising-interest-expected amount higher than the acute funding requirement, were obtained. Equally, in the expectation of falling interest rates, the refinancing bond funds with shorter periods were obtained.
* From amount transformation will be discussed, first of all if more funding were obtained than the actual credit new business. Until the appropriate lending such sums zinsbringend, mostly with shorter maturities with other banks on the money market.
* The increasing internationalization of the economy can refinance measures in foreign currency required, or if the monetary risks desirable. In that case, a currency transformation caused by foreign exchange derivatives absicherbar. This can be one means of refinancing in other currencies obtain, as they are used as a credit. Other arise credit products on the market, the borrower rights election, in which currency loans back. |
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