International Economic Terms

The labour force measures the economically active population: people who have a job and those without one who are seeking and available for work. Its size …

The labour force participation rate measures the percentage of people of working age who are either employed or actively seeking and available for work. Its denominator …

Labour productivity indicates how much economic production is associated with one worker or one hour of work. A standard macroeconomic measure uses GDP at constant prices …

Under prudential regulation, an institution has a large exposure when claims on one counterparty, or on several economically linked counterparties, reach at least one-tenth of its …

Large-value funds transfer systems process payments that are substantial in amount or given priority within the system. Participants may use them to settle their own obligations …

A large-value payment is a high-denomination transaction used to discharge obligations between financial institutions or other market participants. Given the amounts involved and the time sensitivity …

Leading indicators are data series that typically change before the wider economic conditions they are used to monitor. Their movements may signal the direction of subsequent …

Legal convergence denotes the changes required in a Member State’s domestic law before its central bank can participate fully in the EU monetary framework. The relevant …

A less significant institution (LSI) is a bank whose routine prudential supervision is carried out by a national competent authority within the Single Supervisory Mechanism. The …

A letter of credit is a bank’s commitment to pay an exporter or other named beneficiary once the documents presented meet the conditions set out in …