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Banking

Loan Loss Reserve

A type of credit enhancement whereby a reserve (specifically, a cash reserve) is created by a bank for the purpose...

Contingent Non-Viability Event

A contingent event that, once occurred, will prompt a regulated entity to issue financial instruments that convert into a variable...

CET1

The capital of a bank or financial institution that consists of paid-in capital, capital reserve, surplus reverse, general reserve, undistributed...

Common Equity Tier-1 Capital

The capital of a bank or financial institution that consists of paid-in capital, capital reserve, surplus reverse, general reserve, undistributed...

Non-Viability Event

The occurrence of either of two situations, whichever earlier:  1) a regulator decides that it is necessary to write down...

Regulatory Capital Haircut

The amount of capital provision (haircut) that a bank or financial institution makes when booking a specific transaction so that...

WC Promissory Note

A short form of wedding cake promissory note; a type of structured promissory note that has multiple double no touch barriers.…

RA Promissory Note

A short form of range accrual promissory note; a type of structured promissory note that has the potential to increase the…

Wraparound Mortgage

A type of subordinate mortgage (junior mortgage) in which the principal obligation is secured by one or more superior mortgage…

Wrap

A jargon term for wraparound mortgage; a type of subordinate mortgage (junior mortgage) in which the principal obligation is secured…