What Is The Full Form Of FVR In Banking?
FVR full form in banking is Funding Volatility Ratio. Basically, it’s looking at whether a bank is living paycheck to paycheck with short-term funds or if it’s got a solid stash of long-term cash. They figure this out by comparing the short-term debts to the total debts they have. In simpler terms, FVR is like a bank’s stress test to see how it would handle if money suddenly got tight or expensive. A high FVR? That’s a red flag saying the bank is riding the waves with short-term cash, which could spell trouble when the financial weather gets stormy. On the flip side, a low FVR means the bank’s sitting pretty with more long-term funds, making it steadier and ready to face whatever comes its way.
What Else Should You Know About FVR?
Banks aren’t just throwing darts in the dark hoping for the best FVR. They’re pretty keen on keeping this ratio smart to dodge funding hiccups and make sure they can keep the lights on, even when the going gets tough. Keeping an eye on their FVR lets banks get savvy with how they handle their cash, like tweaking how long they’ve got to pay back what they owe or mixing up where they’re getting their money from. This FVR game plan is a win-win.
Other FVR Full Forms In Banking
- Fair Value Reserve
- Field Visit Report
- Folkestone Vehicle Rentals