Month: July 2023
- Loss given default (LGD) EN
In rating, the - previously planned, i.e. expected or - the actual default rates of the loans; if not expressed otherwise, calculated as the amount of …
- Loss event (event loss) EN
Operational risk event that results in a loss to the bank. According to the list in Basel II, which is more exemplary and therefore not comprehensive …
- Loss risk EN
In the financial market, the contingency (eventuality: the actual possibility) of losing all or part of the capital invested in a commitment. - See hedging, call …
- Debt hiding EN
The practice of even large companies, not only in the USA, to hide losses and debts at subsidiaries. The Sarbanes-Oxley Act of 2002 made this practice …
- Loss potential (loss chance) EN
The risk of incurring a loss in a transaction, and especially in an exposure to the financial market. - See investment courage, defaveur, profit potential, risk …
- Industrial assets EN
Amount of money of value in nonfinancial corporations determined according to certain rules of financial accounting. - See capital ratio. - Cf. Deutsche Bundesbank Monthly Report …
- Shared pain approach EN
Generally, a prior contractual agreement on the proportions in which losses arising from the default are to be shared among the various parties. - In particular, …
- Commingling risk EN
A portfolio or pool contains securities to which third parties have rights (the risk that clear titles become comingled [= mixed] with assets owned legally by …
- Loss trap EN
The hardly rationally explainable but empirically well-documented fact that both private investors and companies are inclined to let losses run their course instead of drawing a …
- Loss notification EN
In the event of a loss of twenty-five percent or more of liable capital, a bank in Germany must notify the supervisory authority without delay; see …