UseThe term netting describes a com

Use
The term netting describes a complex legal concept. The individual contracts between the parties involved are linked using a master contract in such a way that only the balance from the individual contracts is owed if the contractual relationship is terminated due to a cash flow disturbance or bankruptcy. Netting is a means of reducing credit risk, as is the provision of collateral. The result of netting is that the delivery of securities and payment obligations from trading activities are netted to reduce the number of settlement processes.
In on-balance-sheet netting, balance sheet transactions are netted.
Netting reduces the economic default risk and the capital requirement in the context of supervisory requirements (such as Principle I in Germany). Another advantage of netting is that it reduces the drawing on the internal limits set for counterparties. As banks price individual transactions according to their level of risk, they gain a competitive advantage from netting because this leads to a reduced risk margin.
Integration
Bank Analyzer maps three types of netting:
· Netting of on-balance sheet transactions
· Netting of repo-style transactions
· Netting of OTC derivative transactions
Prerequisites
To be able to net transactions, in the Financial Database (FDB) a netting agreement (corresponds to the netting agreement of the counterparty) is created for the on-balance-sheet netting category. You use relationships that have this netting category to link the transactions that are to be netted. After the transactions have been netted, the netting agreement contains the result of the netting process. It is this result that is used in the calculation of the capital requirement.
To net transactions for a particular Credit Exposure run, in Customizing you need to have set the Perform Netting indicator under Bank Analyzer ® Credit Risk Analyzer ® Credit Exposure ® Calculation ® Define Calculation Method.
You can also define for individual transactions whether these are to be netted. Contracts that belong to a netting agreement but are not relevant for netting in a run are calculated as though there were no netting agreement for them.
Features
If a partially disbursed loan is linked to a contract relationship by means of the netting agreement, only the disbursed part is taken into account in on-balance-sheet netting. The part that has not been disbursed is treated as a separate traditional off-balance-sheet transaction, and included in other calculation processes.
Results of Netting
· In on-balance-sheet netting, the balance sheet assets and liabilities that belong to the same netting bundle are netted. The netting result, which is the EAD for netting excluding the calculation components, is determined at the level of the netting agreement.
· The longest residual maturity of all transactions that are to be netted.
· In the advanced IRB approach, maturity M is calculated for the netting agreement.
In on-balance-sheet netting, the assets and liabilities that are to be netted are linked to the netting bundle by means of relationships to the netting agreement. A netting bundle consists of a netting main contract and two or more asset and liability transactions. Within the netting bundle, an ID (which has to be provided) for the assets and liability transactions is used to split the asset transactions into n asset transactions and the liability transactions into m liability transactions. Then the relationships between all n+m transactions that to be netted and the ijth relationships are created. All ijth relationships between the ith asset transaction (with i=1,...,n) and the jth liability transaction (with j=1,...,m) are mapped.

Kết quả (Anh) 1:

UseThe term netting describes a complex legal concept. The individual contracts between the parties involved are linked using a master contract in such a way that only the balance from the individual contracts is owed if the contractual relationship is terminated due to a cash flow disturbance or bankruptcy. Netting is a means of reducing credit risk, as is the provision of collateral. The result of netting is that the delivery of securities and payment obligations from trading activities are netted to reduce the number of settlement processes.In on-balance-sheet netting, balance sheet transactions are netted.Netting reduces the default risk and the economic capital requirement in the context of supervisory requirements (such as Principle I in Germany). Another advantage of netting is that it reduces the drawing on the internal limits set for counterparties. As banks to price individual transactions according to their level of risk, they gain a competitive advantage from netting because this leads to a reduced risk of margin.IntegrationBank Analyzer maps three types of netting:· Netting of on-balance sheet transactions· Netting of repo-style transactions· Netting of OTC derivative transactionsPrerequisitesTo be able to net transactions, in the Financial Database (FDB) a netting agreement (corresponds to the netting agreement of the counterparty) is created for the on-balance sheet netting category. You use relationships that have this netting category to link the transactions that are to be netted. After the transactions have been netted, the netting agreement contains the result of the netting process. It is this result that is used in the calculation of the capital requirement.To net transactions for a particular Credit Exposure run, in Customizing you need to have set the Perform Netting indicator under Bank Analyzer ® Credit Risk Analyzer ® Credit Exposure ® Calculation ® Define Calculation Method.You can also define for individual transactions whether these are to be netted. Contracts that belong to a netting agreement but are not relevant for netting in a run are calculated as though there were no netting agreement for them.FeaturesIf a partially disbursed loan is linked to a contract relationship by means of the netting agreement, only the disbursed part is taken into account in on-balance-sheet netting. The part that has not been disbursed is treated as a separate traditional off-balance-sheet transaction, and included in other calculation processes.Results of Netting· In on-balance-sheet netting, the balance sheet assets and liabilities that belong to the same netting bundle are netted. The result, which is netting the EAD for netting excluding the calculation components, is determined at the level of the netting agreement.· The longest residual maturity of all transactions that are to be netted.· In the advanced IRB approach, maturity is calculated for the netting agreement, M.In on-balance-sheet netting, the assets and liabilities that are to be netted are linked to the netting bundle by means of relationships to the netting agreement. A bundle consists of a netting netting main contract and two or more asset and liability transactions. Within the netting bundle, an ID (which has to be provided) for the assets and liability transactions is used to split the asset transactions into n asset transactions and the liability transactions into m liability transactions. Then the relationships between all the n + m transactions that to be netted and the ijth relationships are created. All relationships between the ijth ith asset transaction (with i = 1, ..., n) and the jth liability transaction (with j = 1, ..., m) are mapped.

Kết quả (Anh) 2:

Use
The term netting diễn tả a complex legal concept. The Individual Contracts INVOLVED giữa parties are linked using a master contract such 'a way mà print only the balance is from the Individual Contracts if the contractual relationship is Owed terminated cash flow Due to a disturbance or bankruptcy. Netting is a means clustering of Reducing credit risk, as is the PROVISION of Collateral. The result of netting is rằng delivery of securities and payment obligations are netted from trading Activities to Reduce the number of settlement processes.
In on-balance-sheet netting, balance sheet transactions are netted.
Netting reduces the default risk and the Economic Capital requirement in the context of Supervisory requirements (như Principle I in Germany). Another Advantage of netting đã it reduces the drawing on the internal limits set for counterparties. As banks ask for their price the individual transactions level of risk theo, gain a competitive Advantage chúng from netting leads to a reduced vì this margin risk.
Integration
Bank Analyzer three types of netting maps:
· Netting of on-balance sheet transactions
· Netting of repo- style transactions
of OTC derivative transactions Netting ·
Prerequisites
To thể net transactions, in the Financial Database (FDB) a netting agreement (corresponds to the agreement of the counterparty netting) is created for the on-balance-sheet netting category. You use relationships mà this have to link the transactions netting category được to be netted. After the transactions được netted, the netting agreement contains the result of the netting process. It is this result in the calculation used nằm of the capital requirement.
To net transactions for một Credit Exposure run, you need to have printed Customizing set the indicators under Bank Analyzer Perform Netting ® Credit Risk Analyzer ® Credit Exposure ® Calculation ® Define Calculation Method.
You can define for the individual transactions cũng These are to be netted nếu. Contracts belong to a netting agreement mà but are not getting relevant for netting in a trembling are calculated as though There were no netting agreement for added.
Features
If a partially disbursed loan is linked to a contract relationship by means clustering of the netting agreement, only the disbursed part is taken Into account on-balance-sheet print netting. The part mà hasnt Been Treated as a chia is disbursed off-balance-sheet traditional transaction, and included other printing processes calculation.
Results of Netting
· Print on-balance-sheet netting, the balance sheet assets and Liabilities belong to the same mà netting bundle are netted. The netting result, the EAD for netting mà excluding the calculation components, is định at the level of the netting agreement.
· The longest residual maturity of all transactions to be netted được.
· In the advanced IRB approach, maturity M is calculated for the netting agreement.
In on-balance-sheet netting, the assets and Liabilities to be netted được are linked to the bundle by means clustering of relationships netting to the netting agreement. A bundle netting netting Consists of a main contract and two or more asset and liability transactions. Within the netting bundle, an ID (mà has to be given below) for the assets and liability transactions is used to split the asset transactions Into asset transactions and the liability n Into m liability transactions transactions. Then all the relationships giữa n + m transactions to be netted and the mà ijth relationships are created. All ijth relationships giữa ith asset transaction (with i = 1, ..., n) and the JTH liability transaction (with j = 1, ..., m) are mapped.