Definitions (2)
Popular Terms
1. Reduction in a bank's loan portfolio (its primary asset and major source of income) as loans are paid-off and the new loans either do not fill the gap or are contracted at lower interest rates.
2. Withdrawal of cash from banks by depositors (during periods of low interest rates) to invest in bonds, stocks (shares), and mutual funds (unit trusts) that yield higher returns. See also disintermediation.

Use 'runoff' in a Sentence

When you borrow money from a bank and you pay back the runoff you will owe less money over time.
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When you start to pay the runoff on a bank loan you can eventually get it all paid off and no longer be in debt.
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Investing often involves many changing variables especially relating to the investment being comprised of a portfolio where there is often runoff regarding excess funds.
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