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Banking

Bad Bank

A financial institution that is set up by a government to absorb toxic assets (bad loans and nonperforming loans) owned by state-guaranteed banks...

Volatility Regime

The band or range in which volatility changes upwardly and downwardly, but not exceeding its upper and lower boundaries. In simple terms,...

Fair Value Hedge

A hedge that accounts for the changes in the fair value of a recognized asset or liability or that of...

Hedge Accounting

A special accounting treatment (measurement/ recognition, etc.) that is applied to match the timing of profit or loss recognition (profit...

Accounting Hedge

A type of hedge that is created for an accounting purpose, rather than for pure risk management purposes. It aims...

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sample articles post ...

Difference Between Khiyar and Wa’ad

Khiyar is an option that is given to one or both of the contracting parties or a third party to…

Accessory Contract

A contract (aqd) which is incidental or auxiliary to another contract (usually a principal contract). Accessory contracts are mainly used...

Back-End Set Swap

An interest rate swap in which the floating rate is set in arrears. This means, the floating rate is determined based on the value...