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Home > QFINANCE Dictionary > Definition of contingency fund

Definition of

contingency fund


money held for unplanned expenditure money set aside from normal expenditure in case it is needed for unplanned expenses

contingency fund - Related Articles
  • Formulating a Contingency Funding Plan to Manage Liquidity Risks

    Best Practice

    A contingency funding plan (CFP) should describe the procedures that a bank or financial institution will implement to fund cash flow shortfalls that could occur in situations of stress or liquidity crises. To develop effective stressed or crisis-based CFP procedures, institutions must create
    By Gary Deutsch

  • Developing a Contingency Funding Plan


    This checklist describes why it is important to set up a contingency fund, how to define its uses, and some traps to avoid.

  • Understanding and Applying Funds Transfer Pricing

    Best Practice

    In its simplest form funds transfer pricing (FTP) is the process whereby the treasury of a bank (its funding center) aggregates funds centrally and then redistributes them throughout the business units, balancing funding resource excesses and shortages and thus creating an internal market for liquidity
    By Hovik Tumasyan

  • Corporate Covenant and Other Embedded Options in Pension Funds

    Best Practice

    The single most objective way of dealing with multi-stakeholder risk situations that arise in pension funds is the embedded options approach. The risks various stakeholders assume in a pension fund are formulated in terms of options—contingent claims—which stakeholders have written to the pension
    By Theo Kocken


Definitions of ’contingency fund’ and meaning of ’contingency fund’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’contingency fund’ and other financial terms with our online QFINANCE Financial Dictionary.

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