Industry WIKI

The term Advanced IRB or A-IRB is an abbreviation of advanced internal ratings-based approach, and it refers to a set of credit risk measurement techniques proposed under Basel II capital adequacy rules for banking institutions.

The National Social Security Administration (Spanish: Administración Nacional de la Seguridad Social; mostly known by its acronym ANSES) is a decentralized Argentine Government social insurance agency managed by the Secretariat of Labour, Employment and Social Security controlled by the Ministry of Human Capital.

Anti-money laundering (AML) software is software used in the finance and legal industries to help companies comply with the legal requirements for financial institutions and other regulated entities to prevent or report money laundering activities. AML software can facilitate faster and more accurate compliance and investigations.

An asset-backed commercial paper program (ABCP program, ABCP conduit, or simply conduit) is a type of non-bank financial entity that issues short-term debt, known as asset-backed commercial paper (ABCP), to fund medium- to long-term assets. These programs act like banks by providing liquidity and transforming maturities—borrowing short-term to finance longer-term investments—but operate

The Association of African Central Banks is an international organization of central banks that promotes monetary, banking, and financial cooperation among its African member states.

The Association of German Public Banks (German: Bundesverband Öffentlicher Banken Deutschlands, generally referred to as VÖB) is a leading association within the German banking sector, bringing together most of the German public banking sector except the local-level savings banks (German: Sparkassen). Its membership includes 63 banks, including the Landesbanks that are also members of th

Bank rate, also known as discount rate in American English, and (familiarly) the base rate in European English, is the rate of interest which a central bank charges on its loans and advances to a commercial bank. The bank rate is known by a number of different terms depending on the country, and has changed over time in some countries as the mechanisms used to manage the rate have change

Bank regulation and supervision refers to a form of financial regulation which subjects banks to certain requirements, restrictions and guidelines, enforced by a financial supervisory authority or supervisor, with semantic variations across jurisdictions. By and large, bank regulation and supervision aims at ensuring the stability of the banking sector and at fostering transparency betwe

Bank reserves are a commercial bank's cash holdings physically held by the bank, and deposits held in the bank's account with the central bank. In most countries, the central bank may set minimum reserve requirements that mandate commercial banks under their purview to hold cash or deposits at the central bank equivalent to at least a prescribed percentage of their liabilities, such as c

During the 1990s, marked by President Carlos Menem's policies of liberalization, Argentina's financial system saw a significant consolidation and strengthening, in large part through foreign investment. In addition to high reserve and capital-adequacy requirements, the Central Bank of Argentina maintained a repurchase agreement with a consortium of international banks to provide a $6,000

The Basel Committee on Banking Supervision (BCBS, often shortened as Basel Committee) is a body that brings together bank supervisory authorities to set common prudential standards and policy. It relies on a permanent secretariat hosted by the Bank for International Settlements in Basel, Switzerland.

Basel I, or the 1988 Basel Accord, is a framework on banking regulations published by the Basel Committee on Banking Supervision in 1988. It arose from deliberations by central banks from major countries during the late 1970s and 1980s. By 1992, it had been transposed into law by all Group of Ten (G10) countries.

Basel III is a framework published by the Basel Committee on Banking Supervision (BCBS) in response to the deficiencies in financial regulation revealed by the 2008 financial crisis. It sets international standards and recommendations for bank capital requirements, stress tests, liquidity regulations, and leverage, with the goal of mitigating the risk of bank runs and bank failures. Base

British banking law refers to banking law in the United Kingdom, to control the activities of banks.

A Business Development Company (BDC) is a form of unregistered closed-end investment company in the United States that invests in small and mid-sized businesses. This form of company was created by the US Congress in 1980 in the amendments to the Investment Company Act of 1940. Publicly filing firms may elect regulation as BDCs if they meet certain requirements of the Investment Company

Capital Adequacy Ratio (CAR) also known as Capital to Risk (Weighted) Assets Ratio (CRAR), is the ratio of a bank's capital to its risk-weighted assets (or credit exposure). National regulators track a bank's CAR and ensure it complies with statutory capital requirements to verify it can absorb a reasonable amount of loss (default of loans) without collapsing. The enforcement of regulate

A capital asset is defined as property of any kind held by an assessee. It need not be connected to the assesse's business or profession. The term encompasses all kinds of property, movable or immovable, tangible or intangible, fixed or circulating. Land and building, plant and machinery, motorcar, furniture, jewellery, route permits, goodwill, tenancy rights, patents, trademarks, shares

Capital controls are residency-based measures such as transaction taxes, other limits, or outright prohibitions that a nation's government can use to regulate flows from capital markets into and out of the country's capital account. These measures may be economy-wide, sector-specific (usually the financial sector), or industry specific (e.g. "strategic" industries). They may apply to all

Capital requirements (or capital adequacy requirements) refer to the set of rules and guidance that banks must observe in most current bank prudential frameworks as exist in individual jurisdictions. They form a central component of bank regulation and supervision.

The Capital Requirements Directives (CRD) for the financial services industry have introduced a supervisory framework in the European Union which reflects the Basel II and Basel III rules on capital measurement and capital standards.

Cash out refinancing (in the case of real property) occurs when a loan is taken out on property already owned in an amount above the cost of transaction, payoff of existing liens, and related expenses. Strictly speaking, all refinancing of debt is "cash-out," when funds retrieved are utilized for anything other than repaying an existing loan.

Central bank independence refers to the degree of autonomy and freedom a central bank has in conducting its monetary policy and managing the financial system and inflation targeting. The purpose of central bank independence is to maintain price stability, enhance the effectiveness of monetary policy, and ensure the stability of the financial system. Independent central banks have more cr

The Central Bank of Honduras (Spanish: Banco Central de Honduras) is the central bank of Honduras, established in 1950. The president of the bank is appointed by President of Honduras for a term of four years.

The Central Bank of Paraguay (Spanish: Banco Central del Paraguay) is Paraguay's highest monetary authority, and the country's governing body, in finances and economics. Its headquarters are in Asunción's Carmelitas neighbourhood.

The Central Reserve Bank of Peru (Spanish: Banco Central de Reserva del Perú; BCRP) is the Peruvian central bank. It mints and issues metal and paper money, the sol.

The American Express Centurion Card, colloquially known as the Black Card, is an exclusive invitation-only charge card issued by American Express. It is reserved for the company's wealthiest clients who meet certain net worth, credit quality, and spending requirements on its gateway card, the Platinum Card. The firm does not disclose the exact requirements to receive an invitation to car

A collateralized debt obligation (CDO) is a type of structured asset-backed security (ABS). Originally developed as instruments for the corporate debt markets, after 2002 CDOs became vehicles for refinancing mortgage-backed securities (MBS). Like other private label securities backed by assets, a CDO can be thought of as a promise to pay investors in a prescribed sequence, based on the c

A collective trust fund or collective investment trust (CIT) is a legal trust administered by a bank or trust company that combines assets for multiple investors who meet specific requirements set forth in the fund's declaration of trust. Typically, a collective trust pools assets from corporate and governmental profit sharing, pension and stock bonus plans, and charitable and other tax

A commercial bank is a financial institution that accepts deposits from the public and provides loans to its clients in order to facilitate their commercial affairs, including transactional and trading activities involving monetary and non-monetary exchanges, while generating profit. In common usage, the term bank generally denotes a commercial bank that is authorized to accept deposits

The Committee on Capital Markets Regulation is an independent and nonpartisan 501(c)(3) research organization financed by contributions from individuals, foundations, and corporations.

The cost of living in Namibia is higher than some other regional cities in the southern region of the African continent. Namibia imports about 50% of its cereal requirements. Many other items used in daily life also need to be imported. High transportation costs make prices very high and unaffordable. Monopolies in some business sectors causes higher profit booking, which also results in

Cost–benefit analysis (CBA), sometimes also called benefit–cost analysis, is a systematic approach to estimating the strengths and weaknesses of alternatives. It is used to determine options which provide the best approach to achieving benefits while preserving savings in, for example, transactions, activities, and functional business requirements. A CBA may be used to compare completed

The credit channel mechanism of monetary policy describes the theory that a central bank's policy changes affect the amount of credit that banks issue to firms and consumers for purchases, which in turn affects the real economy.

Credit risk is the chance that a borrower does not repay a loan or fulfill a loan obligation. For lenders the risk includes late or lost interest and principal payment, leading to disrupted cash flows and increased collection costs. The loss may be complete or partial. In an efficient market, higher levels of credit risk will be associated with higher borrowing costs. Because of this, me

A Credit valuation adjustment (CVA),

Cross-listing (or multi-listing, or interlisting) of shares is when a firm lists its equity shares on one or more foreign stock exchange in addition to its domestic exchange. To be cross-listed, a company must thus comply with the requirements of all the stock exchanges in which it is listed, such as filing.

The Defence, Security and Resilience Bank or DSR Bank is a proposed international financial institution backed by the leaders of Canada, Albania, Belgium, Greece, Latvia, Luxembourg, Romania, Turkey and Ukraine. It aims to help allied countries work jointly to fund defence and security-related investments by providing financial support, such as accessible loans to governments. To be head

Discount policy is a policy tool used by central banks to control the money in circulation by raising or lowering interest rates.

The discount window is an instrument of monetary policy (usually controlled by central banks) that allows eligible institutions to borrow money from the central bank, usually on a short-term basis, to meet temporary shortages of liquidity caused by internal or external disruptions.

Excess reserves are bank reserves held by a bank in excess of a reserve requirement for it set by a central bank.

An exchange rate regime is a way a monetary authority of a country or currency union manages the currency about other currencies and the foreign exchange market. It is closely related to monetary policy and the two are generally dependent on many of the same factors, such as economic scale and openness, inflation rate, the elasticity of the labor market, financial market development, and

Exposure at default (EAD) is a parameter used in the calculation of economic capital or regulatory capital under Basel II for a banking institution. It can be defined as the gross exposure under a facility upon default of an obligor.

In the United States, federal funds are overnight borrowings between banks and other entities to maintain their bank reserves at the Federal Reserve. Banks keep reserves at Federal Reserve Banks to meet their reserve requirements and to clear financial transactions. Transactions in the federal funds market enable depository institutions with reserve balances in excess of reserve requirem

An FHA insured loan is a government-backed loan designed to help a broader range of Americans—particularly first-time homebuyers—achieve homeownership with more flexible credit, income, and down payment requirements than conventional loans. Offered through FHA-approved lenders and insured by the Federal Housing Administration, these loans are widely used today as a practical and accessib

The Financial Crisis Inquiry Commission (FCIC) was established in 2010 in the United States to investigate the causes of the 2008 financial crisis. The commission, led by Phil Angelides, held public hearings, gathered testimony from hundreds, and released its report in January 2011.

Financial fragility is the vulnerability of a financial system to a financial crisis. Franklin Allen and Douglas Gale define financial fragility as the degree to which "...small shocks have disproportionately large effects." Roger Lagunoff and Stacey Schreft write, "In macroeconomics, the term "financial fragility" is used...to refer to a financial system's susceptibility to large-scale

Financial repression refers to government implementation of policies to channel domestic funds to the public sector that in a deregulated market environment would go elsewhere. These policies are used to reduce the government's debt-to-GDP ratio.

Financial risk is any of various types of risk associated with financing, including financial transactions that include company loans in risk of default. Often it is understood to include only downside risk, meaning the potential for financial loss and uncertainty about its extent.

Financial risk modeling is the use of formal mathematical and econometric techniques to measure, monitor and control the market risk, credit risk, and operational risk on a firm's balance sheet, on a bank's accounting ledger of tradeable financial assets, or of a fund manager's portfolio value; see Financial risk management.

The Financial Services Authority (FSA) was a quasi-judicial body accountable for the regulation of the financial services industry in the United Kingdom between 2001 and 2013. It was founded as the Securities and Investments Board (SIB) in 1985. Its board was appointed by the Treasury, although it operated independently of government. It was structured as a company limited by guarantee a

The Financial Stability Board (FSB) is an international body that monitors and makes recommendations about the global financial system. It was established in the 2009 G20 Pittsburgh Summit as a successor to the Financial Stability Forum (FSF). The Board includes all G20 major economies, FSF members, and the European Commission. Hosted and funded by the Bank for International Settlements,

The Financial Stability Forum (FSF) was a group consisting of major national financial authorities such as finance ministries, central bankers, and international financial bodies. It was first convened in April 1999 in Washington. At the 2009 G20 London summit, the G20 nations established a successor to the FSF, called the Financial Stability Board with an expanded membership and broaden

A financial regulatory authority or financial supervisory authority, alternatively financial regulator or financial supervisor, is a public authority whose role is to ensure the proper implementation of financial regulation within its scope of responsibility. Some, though not all, such authorities also set financial rules of their own.

Fiscal dominance is a macroeconomic condition in which government fiscal pressures (high public debt and deficits) effectively dictate or constrain a country’s monetary policy. In a fiscally dominant regime, the central bank’s usual objective of controlling inflation becomes secondary to the Treasury’s budget financing needs, often leading the central bank to accommodate government borro

Food inflation is a type of inflation that affects food items. It is often the most noticeable form of inflation, and tends to impact lower income individuals the hardest. Common causes include poor harvest, war, increasing energy prices, and food being unharvested. Food inflation almost always leads to currency inflation, as food is a requirement for survival.

Foreign exchange regulation is a form of financial regulation specifically aimed at the over-the-counter Forex market that is decentralized and operates with no central exchange or clearing house. Due to its decentralized and global nature, the foreign exchange market has been more prone to foreign exchange fraud and has been less regulated than other financial markets.

Foreign exchange reserves (also called forex reserves or FX reserves) are cash and other reserve assets such as gold and silver held by a central bank or other monetary authority that are primarily available to balance payments of the country, influence the foreign exchange rate of its currency, and to maintain confidence in financial markets. Reserves are held in one or more reserve cur

Foreign exchange risk (also known as FX risk, exchange rate risk or currency risk) is a financial risk that exists when a financial transaction is denominated in a currency other than the domestic currency of the company. The exchange risk arises when there is a risk of an unfavourable change in exchange rate between the domestic currency and the denominated currency before the date when

Forward guidance is a tool used by a central bank to exercise its power in monetary policy in order to influence, with their own forecasts, market expectations of future levels of interest rates.

The term Foundation IRB or F-IRB is an abbreviation of foundation internal ratings-based approach, and it refers to a set of credit risk measurement techniques proposed under Basel II capital adequacy rules for banking institutions.

Fractional-reserve banking is the system of banking under which banks that take deposits from the public keep only part of their deposit liabilities in liquid assets as a reserve, and lend a percentage to borrowers, thus increasing the money supply by the loaned amount. Bank reserves are held as cash in the bank or as balances in the bank's account at the central bank. Fractional-reserv

The Friedman rule is a monetary policy rule proposed by Milton Friedman. Friedman advocated monetary policy that would result in the nominal interest rate being at or very near zero. His rationale was that the opportunity cost of holding money faced by private agents should equal the social cost of creating additional fiat money. Assuming that the marginal cost of creating additional mon

The Fund Transfer Pricing (FTP) measures the contribution by each source of funding to the overall profitability in a financial institution. Funds that go toward lending products are charged to asset-generating businesses whereas funds generated by deposit and other funding products are credited to liability-generating businesses.

Gamblers Anonymous (GA) is an international fellowship of people who have a compulsive gambling problem. They meet regularly to share their "experiences, strength and hope", so they can help each other solve the problems compulsive gambling has created in their lives, and to help others recover from the addiction of compulsive gambling. The only requirement for membership is a desire to

goAML system is a software solution that has been developed in a manner to incorporate a set of processes and analyze reports about potential suspicious transactions and to classify financial transactions of any type. It is designed as a robust mechanism to capture automated data collection, document management, workflow, and statistical requirements conveniently for the decision-making

Growth Enterprise Market (GEM; Chinese: 創業板) is a board of the Stock Exchange of Hong Kong for growth companies that do not fulfill the requirements of profitability or track record for the main board of the exchange. Opened 1999.

Helicopter money is a proposed monetary policy for inflation targeting, sometimes suggested as an alternative to quantitative easing (QE) when the economy is in a liquidity trap (when interest rates near zero and the economy remains in recession). Although the original idea of helicopter money describes central banks making payments directly to individuals, economists have used the term

In economics, hot money is the flow of funds (or capital) from one country to another in order to earn a short-term profit on interest rate differences and/or anticipated exchange rate shifts. These speculative capital flows are called "hot money" because they can move very quickly in and out of markets, potentially leading to market instability.

In finance, interest rate immunization is a portfolio management strategy designed to take advantage of the offsetting effects of interest rate risk and reinvestment risk.

The implied level of government service is the value of government benefits and services provided a person, partnership, corporation, or other legal entity over a given period of time, including the proportional value of general governmental expenses and social welfare costs.

In macroeconomics, inflation targeting is a monetary policy where a central bank follows an explicit target for the inflation rate for the medium-term and announces this inflation target to the public. The assumption is that the best that monetary policy can do to support long-term growth of the economy is to maintain price stability, and price stability is achieved by controlling inflat

Under the Basel II guidelines, banks are allowed to use their own estimated risk parameters for the purpose of calculating regulatory capital. This is known as the internal ratings-based (IRB) approach to capital requirements for credit risk. Only banks meeting certain minimum conditions, disclosure requirements and approval from their national supervisor are allowed to use this approach

The International Accounting Standards Board (IASB) is the independent accounting standard-setting body of the IFRS Foundation.

Jones v. Flowers, 547 U.S. 220 (2006), was a decision by the Supreme Court of the United States involving the due process requirement that a state give notice to an owner before selling his property to satisfy his unpaid taxes. The Court ruled, 5-3, that after a mailed notice was returned unclaimed, a state was required by the Due Process Clause of the Fourteenth Amendment to take additi

Legal risk as a subset of operational risk that comprises the uncertainty associated with a business becoming a subjects of legal liability and obligations as a result of its operation.

In finance, leverage, also known as gearing, is any technique involving borrowing funds to buy an investment.

The Liikanen Report or "Report of the European Commission’s High-level Expert Group on Bank Structural Reform" (known as the "Liikanen Group") is a set of recommendations published in October 2012 by a group of experts led by Erkki Liikanen, governor of the Bank of Finland and ECB council member. On 3 July 2013, by large majority the European Parliament adopted an own initiative report c

This is a list of abbreviations used in a business or financial context.

Certain large banks are tracked and labelled by several authorities as Systemically Important Financial Institutions (SIFIs), depending on the scale and the degree of influence they hold in global and domestic financial markets.

Macroprudential regulation is the approach to financial regulation that aims to mitigate risk to the financial system as a whole (or "systemic risk"). After the 2008 financial crisis, there has been a growing consensus among policymakers and economic researchers about the need to re-orient the regulatory framework towards a macroprudential perspective.

The Margin-at-Risk (MaR) is a quantity used to manage short-term liquidity risks due to variation of margin requirements, i.e. it is a financial risk occurring when trading commodities. It is similar to the Value-at-Risk (VaR), but instead of simulating EBIT it returns a quantile of the (expected) cash flow distribution.

Market risk is the risk of losses in positions arising from movements in market variables like prices and volatility.

Markets in Financial Instruments Directive 2014 (2014/65/EU, commonly known as MiFID 2) is a directive of the European Union (EU). Together with Regulation No 600/2014 it provides a legal framework for securities markets, investment intermediaries, in addition to trading venues. The directive provides harmonised regulation for investment services of the member states of the European Econ

MF Global Holdings Ltd., formerly known as Man Financial, was a major global financial derivatives broker, or commodities brokerage firm that went bankrupt in 2011. MF Global provided exchange-traded derivatives, such as futures and options as well as over-the-counter products such as contracts for difference (CFDs), foreign exchange and spread betting. MF Global Inc., its broker-deal

The Ministry of Finance (Romanian: Ministerul Finanțelor) is one of the fourteen ministries of the Government of Moldova. It is the central specialized body of public administration, which develops and promotes the unique policy of training and managing public finances, applying financial levers in line with the requirements of the market economy. In its activity, the Ministry of Finance

The Ministry of Finance & National Economy (MOFNE) is responsible for formulating and implementing the financial policies of the Kingdom of Bahrain within the overall vision of the Bahrain Government. The Ministry prepares the state general budget in coordination with other ministries and public entities in a way that reflects the financial and economic objectives of the Kingdom, particu

In economics, the monetary base (also base money, money base, high-powered money, reserve money, outside money, central bank money or, in the UK, narrow money) in a country is the total amount of money created by the central bank. This includes:

A monetary hawk, or hawk for short, is someone who advocates keeping inflation low as the top priority in monetary policy. In contrast, a monetary dove is someone who emphasizes other issues, especially low unemployment, over low inflation. The term monetary pigeon has been used to describe moderate or centrist viewpoints.

Monetary reform refers to proposals to change a country's monetary system, including how money is created, regulated, and distributed. Such reforms seek to address perceived problems with current monetary schemes, like financial instability, wealth inequality, or inflation. Monetary reform movements grow during economic crises, proposing alternatives to prevailing systems.

Monetary sovereignty is the power of the state to exercise exclusive legal control over its currency and monetary policy. This includes the authority to designate a country's legal tender, control the money supply, set interest rates, and regulate financial institutions. Monetary sovereignty is crucial for national sovereignty, economic independence, and policy autonomy.

A monetary system is a system where a government manages money in a country's economy. Modern monetary systems usually consist of a national treasury, a mint, central banks and commercial banks.

Narrow banking is a banking system that restricts commercial banks to hold only safe and liquid assets, like government bonds, against customer deposits, while prohibiting traditional lending activities. Under this model, banks function as custodians and payment processors, separate from the lending function performed by other financial intermediaries. The concept emerged as a response t

The National Bank of Panama (Spanish: Banco Nacional de Panamá, BNP) is one of two Panamanian government-owned banks. As of January 2009, it held deposits of about US$5 billion. The other government-owned bank is Caja de Ahorros de Panamá (Savings Bank of Panama), with about US$1 billion in total deposits.

The uniform net capital rule is a rule created by the U.S. Securities and Exchange Commission ("SEC") in 1975 to regulate directly the ability of broker-dealers to meet their financial obligations to customers and other creditors. Broker-dealers are companies that trade securities for customers (i.e., brokers) and for their own accounts (i.e., dealers).

A non-banking financial institution (NBFI) or non-bank financial company (NBFC) is a financial institution that is not legally a bank; it does not have a full banking license or is not supervised by a national or international banking regulatory agency. NBFC facilitate bank-related financial services, such as investment, risk pooling, contractual savings, and market brokering. Examples

A non-performing loan (NPL) or non-performing asset (NPA) is a bank loan that is subject to late repayment or is unlikely to be repaid by the borrower in full. Non-performing loans represent a major challenge for the banking sector, as they reduce profitability. They are often claimed to prevent banks from lending more to businesses and consumers, which in turn slows economic growth, alt

In macroeconomics, an open market operation (OMO) is an activity by a central bank to exchange liquidity in its currency with a bank or a group of banks. The central bank can either transact government bonds and other financial assets in the open market or enter into a repurchase agreement or secured lending transaction with a commercial bank. The latter option, often preferred by centra

Pay at the pump is a system used at many filling stations, where customers can pay for their fuel by inserting a credit card, debit card, or fuel card into a slot on the pump, bypassing the requirement to make the transaction with the station attendant or to walk away from one's vehicle. A few areas have gas stations that use electronic tolling transponders as a method of payment, such a

A perpetual bond, also known colloquially as a perpetual or perp, is a bond with no maturity date, therefore allowing it to be treated as equity, not as debt. Issuers pay coupons on perpetual bonds forever, and they do not have to redeem the principal. Perpetual bond cash flows are, therefore, those of a perpetuity.

Price stability occurs when average consumer prices for goods and services are constant over time, or when they are rising at a low and predictable rate. It is a goal of monetary and fiscal policy aiming to support sustainable rates of economic activity. Policy is set to maintain a very low rate of inflation or deflation. For example, the European Central Bank (ECB) describes price s