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Banking

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...

Restricted Asset

An asset that a bank or financial institution is prevented from disposing of in any form including liquidation, sale, transfer...

Encumbered Asset

An asset that a bank or financial institution is prevented from disposing of in any form including liquidation, sale, transfer...

Balloon Loan

A loan that is paid back in level installments on a long-term payment schedule (10-20 years, or even more), and...

Capital Ratio

A ratio relating a bank's capital to its risk-weighted assets (RWAs). The main forms of this ratio include tier-1 capital...

Offset Account

A type of bank account (a transactional account) that's linked to a mortgage account (home loan) so that the interest...

Automatic Stay

A freeze (legal moratorium) that is imposed by a bankruptcy court on a lender's debt collection activities as soon as...