Banking

Close-out netting is a process for calculating a single amount payable between parties after an agreed termination event, typically a default or insolvency. It replaces the …

Collateral is support furnished to help ensure that a financial or contractual duty will be performed. It may take the form of property that can be …

Debt service refers to the cash required to keep a borrowing arrangement current, including interest charges and any principal due. It may describe amounts actually paid …

The debt service-to-income (DSTI) ratio shows the portion of a household's disposable earnings needed to cover scheduled payments on its loans. It is used by lenders …

A deposit with an agreed maturity is an account or instrument that remains outstanding until a predetermined date. Access before that date may be unavailable or …

Distributed ledger technology (DLT) comprises systems that let multiple independent parties update and verify a common record without depending on one central database. Through agreed validation …

Earmarking means designating specific assets to secure specified obligations, so that those assets are tracked separately instead of forming part of a common collateral pool. This …

Within the Internal Capital Adequacy Assessment Process (ICAAP), the economic perspective evaluates whether an institution has enough internally available capital to absorb the risks identified through …

Enforcement and sanctioning powers are legal instruments through which a prudential supervisor responds to non-compliance. An enforcement measure directs an institution or, where the legal framework …

A failing or likely-to-fail (FOLTF) determination is made when a bank is no longer, or is expected shortly to cease being, viable under its supervisory authorisation …