Business and Personal Finance Dictionary

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• NET ECONOMIC VALUE
  
  Term favored by the Federal Banking regulators in lieu of market value of portfolio equity. The difference between the sum of the present values of all cash flows from assets and the sum of the present values of all cash flows from liabilities. This is a proxy or estimated value used for capital when the sensitivity of capital to changes in prevailing interest rates is calculated. See market value of portfolio equity and value at risk.
  
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