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Banking

Dynamic Loan Loss Provisioning

A cycle responsive provisioning that is designed to help a bank deal with the effect of procyclicality. Dynamic provisioning allows...

Dynamic Provisioning

A cycle responsive provisioning that is designed to help a bank deal with the effect of procyclicality. Dynamic provisioning allows...

PIC

An acronym for paid-in capital; the total amount of cash or other assets that shareholders have paid a bank in...

Paid-In Capital

The total amount of cash or other assets that shareholders have paid a bank in exchange for shares of its...

Discretionary Surplus Reserve

A type of surplus reserve (in turn, a component of tier-1 capital (core capital, or tranche-1)) that a bank, by...

Statutory Surplus Reserve

A component of surplus reserve, which is, in turn, a component of tier-1 capital (core capital, or tranche-1). Statutory surplus...

Surplus Reserve

A type of reserve that a bank sets aside and holds out of its net earnings in each and every...

Tranche 1

A layer/ tranche of capital (for a bank or financial institution) that consists of common equity, minority interests, eligible noncumulative...

Liquid Assets

An asset that constitutes the most readily available form of monetary assets (i.e., cash or cash equivalents) or any types...

Credit Cycle

Cyclical fluctuations in credit availability in an economy, affecting as a result interest rates. A credit cycle represents the different...