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Banking

LIBOR

It stands for the London Interbank Offered Rate, i.e., the interest rate at which banks borrow funds from each other,...

Lock-In Provision

A mechanism whereby a borrower can guarantee an interest rate on a loan would not move beyond a specific level...

Legal Interest

The interest (interest rate) that represents the highest interest rate that a bank or financial institution can legally charge on...

Leverage Ratio

A ratio that relates a bank's total debt to its equity/ capital or assets. Depending on the denominator, this ratio...

Liquidity Run

A situation that a bank or financial institution faces when its liquidity drops down due to an irregular increase in...

Liquid Certificate of Deposit

A certificate of deposit (CD) that allow its holder to withdraw his/ her money before its maturity date (end of its term)...

Liquid CD

A certificate of deposit (CD) that allow its holder to withdraw his/ her money before its maturity date (end of its term)...

LADG

It stands for leverage-adjusted duration gap ; a duration gap measure that takes into account a bank's overall exposure to interest rate...

Leverage-Adjusted Duration Gap

A duration gap measure that takes into account a bank's overall exposure to interest rate risk. It is calculated as the difference between...

Loan Sharking

The practice of lending money to desperate people at unfairly high interest rates. More specifically, loan sharking involves charging interest...