Quick Answer: What Does Runoff Mean In Finance?

What is the meaning of runoff water?

Surface runoff (also known as overland flow) is the flow of water occurring on the ground surface when excess rainwater, stormwater, meltwater, or other sources, can no longer sufficiently rapidly infiltrate in the soil.

The land area producing runoff that drains to a common point is called a drainage basin..

How do humans affect runoff?

Human activities can affect runoff In addition to increasing imperviousness, removal of vegetation and soil, grading the land surface, and constructing drainage networks increase runoff volumes and shorten runoff time into streams from rainfall and snowmelt.

What is Runoff cash flow?

Runoff cash flow reflects the assets that are repaid before maturity and the liabilities that are withdrawn unsuspected. To the extent that either of these amounts is significantly greater than expected, the estimated interest rate sensitivity of the bank will be in error.

What is runoff in business?

Runoff insurance protects an acquiring company from legal claims made against a company being acquired or a company that has merged or ceased operations. A runoff policy applies for a certain period after the policy is active acting as a claims-made policy rather than an occurrence policy.

What is an example of runoff?

Runoff is defined as excess water draining away from land or buildings. The overflow of water that drains off of your driveway is an example of runoff. Rainfall not absorbed by soil. … The runoff of nitrates is poisoning the lake.

Is runoff good or bad?

Runoff is extremely important in that not only does it keep rivers and lakes full of water, but it also changes the landscape by the action of erosion. … Runoff of course occurs during storms, and much more water flows in rivers (and as runoff) during storms.

What is the process of runoff?

Surface runoff is water, from rain, snowmelt, or other sources, that flows over the land surface, and is a major component of the water cycle. … When runoff flows along the ground, it can pick up soil contaminants such as petroleum, pesticides, or fertilizers that become discharge or overland flow.

What is another word for runoff?

In this page you can discover 18 synonyms, antonyms, idiomatic expressions, and related words for runoff, like: flow, groundwater, rainfall, surplus water, spring runoff, snowmelt, siltation, aquifer, ground-water, surface-water and streamflow.

What are the different types of runoff?

Types of Runoff There are three major types of runoff depending on the source: surface flow, interflow, and base flow. These were discussed in Module 101 and are ex- panded upon here. Surface Flow Surface flow is water that has remained on the surface and moves as overland or channel flow.

What is direct runoff?

Water that flows over the ground surface directly into streams, rivers, or lakes. Also called storm runoff.

What is a maturity bucket?

The maturity bucket is the time window over which the dollar amounts of assets and liabilities are measured. The length of the repricing period determines which of the securities in a portfolio are rate-sensitive.

What does the word runoff mean?

(Entry 1 of 2) 1 : a final race, contest, or election to decide an earlier one that has not resulted in a decision in favor of any one competitor. 2 : the portion of precipitation on land that ultimately reaches streams often with dissolved or suspended material.

What is a repricing gap?

The repricing gap is a measure of the difference between the dollar value of assets that will reprice and the dollar value of liabilities that will reprice within a specific time period, where reprice means the potential to receive a new interest rate.

What is deposit runoff?

early withdrawal of savings account or time deposit balances. When depositors take their funds out of depository institutions to put their money in direct investments, such as stocks, bonds, or mutual funds, the outflow of funds from banking institutions is known as disintermediation.