Pension funds
Funds administered by a federal, state, or local government
What is public pension funds?
Mortgages borrowers defaulted on their mortgages
What is 2008-2009 financial crisis?
The risk that the promised cash flows from loans and securities held by Financial institutions may not be paid in full
What is credit risk?
The old age and survivors insurance funds
What is social security ?
An employee who is eligible to receive pension benefits because he or she worked for a stated period of time
What is Vested employee?
Does not appear on an FI current balance sheet since it does not hold primary assets (Financial Institution)
What is off balance sheet activity?
The risk incurred by financial institutions when the maturities of its assets and liabilities are mismatched and interest rates are volatile
What is interest rate risk?
In 2010 public pension funds managed assets of more than this dollar amount
what is 4.15 trillion?
Funds administered by a private corporation
What is Private pension funds?
Buying or issuing foreign currency are a source of
What is funds?
The risk that repayments from foreign borrowers may be interrupted because of interference from foreign governments.
What is country or sovereign risk?
Some purpose raising these to help with under funding in state and local pension systems
What is taxes?
Employer-sponsored plans that supplement a firm's basic retirement plan
What is 401(k) and 403(b) plans?
Has major concerns in Financial Institutions in recent years
What is technology innovation?
The risk that Financial institution may not have enough capital to offset a sudden decline in the value of its assets relative to its liabilities
What is insolvency risk?
In 2010 the contribution cap for profit sharing keogh plans was linked to cost of living and set as this
What is 49,000?
Self-directed retirement accounts set up by employees who may also be covered by employer-sponsored pension plans
What is individual retirement accounts (ira)?
Losses due to credit risk increases while financial institutions continue to give out loans because the FI charges a rate of interest of loans that compensate for the risk of the loan
What is an element in the credit risk management process
The risk that existing technology or support systems may malfunction or break down
What is operational risk?
The contributions are made by railroad employers, employees, and the federal government
What are contributions to the federal railroad pension system?