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Garcimartín, Francisco; Saez, Maria Isabel --- "Set-off, netting and close-out netting" [2015] ELECD 1251; in Haentjens, Matthias; Wessels, Bob (eds), "Research Handbook on Crisis Management in the Banking Sector" (Edward Elgar Publishing, 2015) 331

Book Title: Research Handbook on Crisis Management in the Banking Sector

Editor(s): Haentjens, Matthias; Wessels, Bob

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781783474226

Section: Chapter 14

Section Title: Set-off, netting and close-out netting

Author(s): Garcimartín, Francisco; Saez, Maria Isabel

Number of pages: 14

Abstract/Description:

Set-off, netting and close-out netting are transactional tools designed to reduce certain financial risk, in particular counterparty risk and market risk. They are, therefore, commonly used by banks and other financial (and even non-financial) institutions. The purpose of this chapter is to offer the reader an introduction to the concepts of set-off, netting and close-out netting (infra 14.2.1), point out their economic function (infra 14.2.2) and describe some of the key issues raised by the legal framework applicable to those risk management tools (infra 14.3).