A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
Accord Implementation Group
Established by the Basel Committee with the mandate to exchange views on implementation issues and thereby promote consistency across countries.
Adequate Capital
The amount of capital a bank needs to cover all the risks it faces. This would be a combination of the requirements for credit, market and operational risk and any additional capital required for risks captured under Pillar 2.
Advanced Internal Ratings Based Approach
The most sophisticated of the three approaches available for the measurement of credit risk where banks can provide their own estimates of PD, LGD, EAD and Maturity. It involves the use of internal models based on internally generated parameters for the calculation of regulatory capital requirements.
Advanced Measurement Approach
The most sophisticated of the three approaches available for operational risk. Under AMA, the institutions internal operational risk models will generate the regulatory capital requirements. These models will need to meet set quantitative and qualitative criteria.
Aggregate holding company
The company with ultimate control over the subsidiaries and sub groups within a financial group.
AIG
AIRB
AMA
ARROW
Advanced Risk-Response Operating frameWork. ARROW is the FSA's risk assessment system. Firms are assessed on the basis of the risk they pose to the FSA's objectives, which are concerned with market confidence, public awareness, consumer protection and the reduction of financial crime.
ASF
Available Stable Funding
The total amount of a bank’s (1) capital, (2) preferred stock with maturity of equal to or greater than one year, (3) liabilities with effective maturities of one year or greater and (4) that portion of “stable” non-maturity deposits and/or term deposits with maturities of less than one year that would be expected to stay with the bank for an extended period in a firm-specific (idiosyncratic) stress event.
Banking book
Exposures arising through the issuing of credit to individuals, corporate entities, other non-corporate bodies, governments and countries.
Banking Consolidation Directive
European Directive (2000/12/EC) that consolidated previous EC directives on banking including the Solvency Ratios Directive. The directive also contains the current provisions for the large exposure regime.
Bank of International Settlements
The usual meeting place of the Basel Committee where its secretariat is located.
Basel 1
The 1988 Basel Accord setting out the initial framework for the assessment of regulatory capital requirements for credit risk. Subsequently amended in 1996 to add capital requirements for market risk.
Basel 2
The name used to describe the 2004 Basel Accord.
Basel Committee on Banking Supervision
The Committee established by the G-10 in 1974, with representation from individual countries' central banks and supervisory authorities, which formulates broad supervisory standards and guidelines and recommends statements of best practice.
Basic Indicator Approach (BIA)
The most simplistic of the three approaches to the measurement of operational risk. Under this method a bank calculates its operational risk regulatory capital requirements by taking a single risk-weighted (15 percent for the majority of banks and 12 per cent for banks operating on a limited license) multiple of a three-year average of gross income to produce their regulatory capital requirements.
BCBS
BCD
BIPRU
The Prudential Sourcebook for banks, building societies and investment firms.
BIPRU Firm
A bank, building society or investment firm that is subject to the Capital Requirements Directive.
BIPRU 125K Firm
A Limited Licence Firm that can hold client money or securities (and is not a UCITS investment firm). Base (minimum) capital requirements of €125,000 apply.
BIPRU 50K Firm
A Limited Licence Firm that does not hold client money or securities (and is not a UCITS investment firm). Base (minimum) capital requirements of €50,000 apply.
BIPRU 730K Firm
A BIPRU investment firm that is not a BIPRU 50K firm, nor a BIPRU 125K firm, nor a UCITS investment firm). Base (minimum) capital requirements of €730,000 apply.
BOFI
A bank or other financial industry entity.
Borrower Rating
Indicators or forecasts of the potential for credit loss because of an obligor's failure to pay, a delay in payment, or partial repayment.
Business cycle
A cycle of economic activity around a trend growth rate typically characterised by a trough, upswing, peak and downswing.
A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z