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
Re-ageing
A process by which banks adjust the delinquency status of loans based on subsequent good performance, even though not all arrears under the original repayment schedule have been paid off.
Re-cast technique
The technique established by inter-institutional agreement to incorporate the new Capital Requirements Directive into EU legislation by amendment of the existing Banking Consolidation Directive (2000/12/EC) and the Capital Adequacy Directive (93/6/EEC).
Recognised rating agency
An agency that produces credit ratings, which meets the criteria laid down in the Directive. Ratings from these agencies may be used to calculate the capital requirements for credit risk under the Standardised Approach.
Regulatory capital requirements
The minimum capital that a financial institution is expected to hold against the risks it faces. This minimum is determined by the financial institutions calculations for credit, market and operational risk, plus any additional capital deemed appropriate under Pillar 2.
Regulatory Impact Assessment (RIA)
A tool that informs policy decisions. It is an assessment of the costs, benefits and risks of a policy option. It is not specific to the UK - many countries use a similar analysis to assess their proposed regulations and large organisations appraise their investment decisions in a similar way.
Relevant and available
A principle of the IRB framework which requires banks to seek out and take into account as much information as possible in order to accurately assess the risk of borrowers and transactions.
Reserves
Those resources that a financial institution holds on its balance sheet above the level necessary to carry on its current operations. These reserves are held against uncertainty and also to take advantage of future opportunities.
Residential property
Property is used for domestic occupation rather than commercial purposes. This would represent housing stock purchased for self occupancy or for residential letting.
Restructured loans
Property is used for domestic occupation rather than commercial purposes. This would represent housing stock purchased for self occupancy or for residential letting.
Retail lending/exposures
Loans and other commercial lending made to individuals or small businesses (typically not private or public limited companies).
Risk Asset Ratio (RAR)
Synonym for Capital Ratio.
Risk assessment process
The process under which an institution identifies the risks to which it is exposed either through its commercial activities, or through its own internal business processes.
Risk exposures
The commercial operations and management of banks which create the possibility of potential financial loss.
Risk management
The processes by which an institution manages its various sources of risk. These include internal controls and procedures, tools to reduce or mitigate risks and the policies a bank adopt to reduce potential risk exposures.
Risk mitigants
Techniques and financial instruments designed to reduce a bank's risk exposures. These may include insurance against operational risk (under AMA) or techniques to reduce credit risk (see Credit Risk Mitigation).
Risk weight
A parameter reflecting the relative risk of a type of lending, counterparty (credit risk) or business activity (operational risk). These weightings are used in the calculation of regulatory capital requirements.
RMG
Risk Management Group - a group set up by the Basel Committee that has been considering the operational risk elements of the revised Accord.
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