Average maturity period calculation for external commercial borrowings uses a day-weighted balance-proportionate formula to determine tenor. Computation of the Average Maturity Period for an ECB uses a day-weighted formula: for each interval multiply the outstanding balance by the number of ... Summary
Average maturity period calculation for external commercial borrowings uses a day-weighted balance-proportionate formula to determine tenor.
Computation of the Average Maturity Period for an ECB uses a day-weighted formula: for each interval multiply the outstanding balance by the number of days it remains outstanding, divide by (loan amount x 360), and sum those period products to obtain the average maturity. The example applies the DAYS360 convention and tabulates drawals, repayments, balances, days, and period products to produce the single averaged maturity figure.
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