// definition
EVE
Economic value of equity
freshreviewed 0 days ago
Short definition
The net present value of cash flows from assets, liabilities and off-balance-sheet positions in an interest-rate risk measure. Its scenario change covers the positions’ remaining life and differs from accounting earnings or the share price.
risk atlas
Knowledge map
Intuition
Discounted value follows cash flows until the positions run off, beyond the next financial year.
Related analyses
- Government debt is catching up with Europe’s banksReading the EVE change in the EU IRRBB1 table.
Primary sources
- BIS, IRRBB standardised frameworkPresent value of on- and off-balance-sheet cash flows under rate scenarios.