Glossary entry (derived from question below)
French term or phrase:
coût de la ressource
English translation:
cost of funding
Added to glossary by
Charlotte Allen
Sep 29, 2013 08:38
10 yrs ago
1 viewer *
French term
United Kingdom
le coût de la ressource
French to English
Bus/Financial
International Org/Dev/Coop
Discussion of Basel III banking rules
"A titre d’exemple, les Etats-Unis n’ont pas appliqué les règles en matière de liquidity, élément clé qui détermine le coût de la ressource permettant de prêter à long terme plus ou moins cher.''
This is from a highly confidential document so I'm unfortunately unable to give much more context (I could tell you but then I'd have to kill you, etc. Or rather, my client would kill me). However, the context is a discussion of Basel III, and in particular its liquidity requirements in the context of long-term lending. Here, I'm completely stumped by the second part of the sentence. What is the "ressource" referred to? When it says 'élément clé', is it referring to liquidity (i.e. it is the banks' own liquidity position that is key) or to the new liquidity rules/requirements and/or their application (i.e. it is applying the rules on liquidity which is key)?
Economics are not my specialist area, but I've grasped that the Basel III liquidity requirements are likely to have a stifling effect on long-term lending and that the banks will be required to hold a much higher ratio of assets to expected cash outflows. However, on that basis I just can't work out what this is trying to say.
Any economists care to weigh in? Help!
This is from a highly confidential document so I'm unfortunately unable to give much more context (I could tell you but then I'd have to kill you, etc. Or rather, my client would kill me). However, the context is a discussion of Basel III, and in particular its liquidity requirements in the context of long-term lending. Here, I'm completely stumped by the second part of the sentence. What is the "ressource" referred to? When it says 'élément clé', is it referring to liquidity (i.e. it is the banks' own liquidity position that is key) or to the new liquidity rules/requirements and/or their application (i.e. it is applying the rules on liquidity which is key)?
Economics are not my specialist area, but I've grasped that the Basel III liquidity requirements are likely to have a stifling effect on long-term lending and that the banks will be required to hold a much higher ratio of assets to expected cash outflows. However, on that basis I just can't work out what this is trying to say.
Any economists care to weigh in? Help!
Proposed translations
(English)
| 5 +1 | cost of funding |
William A McNab
|
| 3 +1 | the cost of the resource |
Sandra & Kenneth Grossman
|
References
| http://cib.natixis.com/flushdoc.aspx?id=46427 |
Colin Morley (X)
|
| cost of the resource |
Nikki Scott-Despaigne
|
Change log
Sep 29, 2014 09:42: Charlotte Allen Created KOG entry
Proposed translations
+1
7 hrs
William A McNab
New Zealand
New Zealand
Native in English
Specializes in field
New Zealand
Economics and finance
Native in: English
Works in: Spanish to English, French to English
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8
Selected
cost of funding
Hi Charlotte,
The "ressource" is banks' funding, or what it costs them to raise the money that they then lend to households or companies or whoever.
Given the wider context (Basel III), to me it would make sense that the "élément clé" is the implementation of the liquidity rules (Europe vs US). My understanding (I'm no expert) is that the rules (liquid coverage ratio and NSFR) increase banks' cost of funding by requiring them to obtain it from more stable and longer-term sources (i.e. more expensive). This means that the interest rates banks set on their long-term loans to housheolds or companies or whoever will be higher.
I found a useful doc online from Australia's central bank explaining funding costs and lending rates (see reference). Hope that helps.
The "ressource" is banks' funding, or what it costs them to raise the money that they then lend to households or companies or whoever.
Given the wider context (Basel III), to me it would make sense that the "élément clé" is the implementation of the liquidity rules (Europe vs US). My understanding (I'm no expert) is that the rules (liquid coverage ratio and NSFR) increase banks' cost of funding by requiring them to obtain it from more stable and longer-term sources (i.e. more expensive). This means that the interest rates banks set on their long-term loans to housheolds or companies or whoever will be higher.
I found a useful doc online from Australia's central bank explaining funding costs and lending rates (see reference). Hope that helps.
4 KudoZ points awarded for this answer.
Comment: "Thank you - this was very helpful"
+1
2 hrs
Sandra & Kenneth Grossman
Israel
Israel
Native in English
Israel
Quality, Reliability, Experience.
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, Romanian
Works in: French to English, Hebrew to English, Romanian to English, and 3 more.
Related KudoZ points
:
4
the cost of the resource
The text seems pretty clear, but I am not an economist:
The "élément clé " is whether or not they apply the rules.
The resource is the liquidity, and fact that the its cost to the banks determines interest rates.
The "élément clé " is whether or not they apply the rules.
The resource is the liquidity, and fact that the its cost to the banks determines interest rates.
Reference comments
15 mins
Reference:
http://cib.natixis.com/flushdoc.aspx?id=46427
From one non-economist to another I found this, which to my untrained eye seems to suggest that it's the rate at which banks lend to one another... No doubt someone with better knowlege will contribute, but this could be a starting point for you.
2 days 8 hrs
Nikki Scott-Despaigne
Native in English
Psychologist, Court-certified legal
Native in: English 
Works in: French to English
Related KudoZ points
:
11
Reference:
cost of the resource
http://www.banque-france.fr/fileadmin/user_upload/banque_de_...
Banque de France • Financial Stability Review • No. 3 • November 2003
Cf p58: The doc refers to Basel I and II but it would seem to be standard terminology in context, although not and original EN document.
"The largest component of the cost of credit is the
cost of refinancing: i.e., the cost of the resource
that appears on the liability side of the bank’s
balance sheet. The next largest component is the
cost of the human resources and materials needed
to raise the financing and extend the loan. The
third component is the cost of risk covered by
provisions. The fourth, and smallest in size, is the
regulatory cost of capital."
Banque de France • Financial Stability Review • No. 3 • November 2003
Cf p58: The doc refers to Basel I and II but it would seem to be standard terminology in context, although not and original EN document.
"The largest component of the cost of credit is the
cost of refinancing: i.e., the cost of the resource
that appears on the liability side of the bank’s
balance sheet. The next largest component is the
cost of the human resources and materials needed
to raise the financing and extend the loan. The
third component is the cost of risk covered by
provisions. The fourth, and smallest in size, is the
regulatory cost of capital."
Discussion
I wouldn't have expected it to relate to inter-bank loans - but I haven't checked that out!