banking book meaning

[Economics]
A record of the banking activities of a bank as distinct from its trading activities. This division is often used for the purposes of organizational and risk management. For example, the banking book will register the impacts of the competitive advantage that may be obtained from raising and lending retail funds on particular terms and of the credit risk and operational risk associated with those activities. However, rates of interest and exchange are likely to be swapped out of the banking book, because they are regarded as being managed by the trading activity of the bank.

Compare:

trading book.

  • banking:    Noun: banking  ...
  • book:    Noun: book &n ...
  • book in:    1. book in • book ...

Examples

  1. in particular, it provides guidance to ais on effective systems for measuring, monitoring and controlling interest rate risk in the banking book
  2. Both trading and banking book assets will be subject to stress, including off-balance sheet exposures.
  3. He said the Philippines is not ready to open its banking books since this would be a deterrent to both foreign and local investors.
  4. The 6-foot-4-inch Bacot, who was once described as having a manner like Jack Webb of " Dragnet, " seems to have broken just about every rule in the banking book of etiquette.

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PC Version