What does run off mean in banking?

For a bank or lender, portfolio runoff can occur when payments are made on fixed-term loans without further loan volume generation. Banks can experience runoff when individuals and businesses withdraw capital to invest in other higher-paying investments, thereby reducing the bank’s total capital.

What is run off in stock market?

Today, the term “runoff” refers to trades that occur at the end of the trading session and which are not reported until the beginning of the next day.

What is run off cashflow?

Runoff cash flow reflects the assets that are repaid before maturity and the liabilities that are withdrawn unsuspectedly. To the extent that either of these amounts is significantly greater than expected, the estimated interest rate sensitivity of the bank will be in error.

What is a run off account?

An event in which many account holders at a bank withdraw all of their funds at the same time because they do not believe the bank is solvent. In the United States, runs were fairly common before the creation of the FDIC, which insures bank deposits up to a certain amount.

What are facts about runoff?

Runoff, run-off or RUNOFF may refer to: RUNOFF, the first computer text-formatting program Runoff or run-off, another name for bleed, printing that lies beyond the edges to which a printed sheet is trimmed Runoff or run-off, a stock market term Runoff curve number, an empirical parameter used in hydrology

Why is runoff a problem?

Runoff in neighborhoods can be a problem because as the water runs it can collect pollutants such as oil, pesticides, bacteria, etc.

What does runoff consist of?

Runoff is the movement of landwater to the oceans, chiefly in the form of rivers, lakes, and streams. Runoff consists of precipitation that neither evaporates, transpires nor penetrates the surface to become groundwater.

Where does runoff end up?

They usually end up in the ocean. Groundwater is underground water, for example in soil, and runoff is water on the surface of land that is drained away.