Thus, the result

The foreign exchange position is determined by the ratio between total assets and off-balance requirements for certain foreign currency (AB) and the sum of the balance sheet and off-balance sheet liabilities in foreign currency (lie) and is calculated separately for each foreign currency, a member of the multi-portfolio. By a factor of influence on the bank statement balance distinguish, and the total off-balance sheet foreign currency positions. The balance sheet position in foreign currency - is the ratio (difference) between the amount of balance sheet assets and liabilities in one currency. It occurs as a result of the operations that directly affect the bank's balance sheet. The peculiarity of this position is that its reassessment due to changes in foreign exchange spot rate must relate directly to the bank's financial performance as a foreign exchange gain. Off-balance sheet foreign exchange position - the ratio (difference) between the amount of off-balance sheet claims and off-balance sheet liabilities in one currency. It occurs as a result of operations, does not directly affect the bank's balance sheet. The peculiarity of this position is that its reassessment due to changes in currency spot rate is not recognized until the financial performance of the real position on the balance transfer, and re-evaluation associated with a change in the forward-rate financial performance is recognized. The total foreign exchange position - is the sum of the balance sheet and off-balance sheet foreign currency positions. This is precisely the position is calculated to assess and analyze the total foreign exchange transactions of the bank. By a factor of susceptibility to currency risk is isolated closed and open currency positions. Category: Management Operations Commercial Bank | Tags: balance sheet currency