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Accounting
Banking

Default Risk

The probability that a borrower (an individual or institution) fails to make full and timely payments of a loan's principal...

Systemic Risk

A type of risk that represents the probability of a failure of the entire banking system rather than a breakdown...

Policy Instrument

An instrument or tool that is deployed and applied by a central bank (regulatory authority) with the aim to increase...

MPI

It stands for macroprudential and microprudential instruments; macroprudential instruments are those deployed and applied by a central bank with the...

MPT

It stands for monetary policy transmission; the mechanism by which changes to monetary policy made by a central bank (i.e.,...

Liquidity-Linked MPI

It stands for liquidity-based microprudential and macroprudential instruments; a type of microprudential and macroprudential instruments (MPIs) that impacts a bank's...

Interest Rate Channel

A type of credit channel that reflects the direct effect of a policy induced change in a central bank's policy...

Monetary Policy Transmission

The mechanism by which changes to monetary policy made by a central bank (i.e., policy- induced changes) are transmitted (i.e.,...

Monetary Transmission

The mechanism by which changes to monetary policy made by a central bank (i.e., policy- induced changes) are transmitted (i.e.,...

CE

It stands for credit easing; a set of "unconventional" monetary policy tools whereby a central bank or monetary agency can...