International Economic Terms

English-language economic definitions generated from approved international institutional sources.

  • leverage ratio EN

    The Basel III leverage ratio indicates the extent to which a bank’s activities are financed by Tier 1 capital rather than debt. It is calculated against …

  • liability EN

    Liabilities are amounts or duties that a business owes to other parties and expects to discharge in the future. They may arise from borrowing, purchases made …

  • linked trade EN

    A linked trade is a securities transaction whose settlement depends on securities obtained in a separate transaction. The second transaction cannot be settled until the relevant …

  • liquidity EN

    Liquidity denotes the availability of funds for making payments and the ease with which an asset can be realised as cash. Cash itself has the highest …

  • liquidity coverage ratio (LCR) EN

    The liquidity coverage ratio (LCR) is a prudential measure of a bank’s short-term liquidity resilience. It compares readily monetisable liquid assets with the cash shortfall expected …

  • Lisbon strategy EN

    The Lisbon Strategy was a Union-wide reform programme agreed by EU leaders in 2000. It established a broad framework for modernising economic and social policy, with …

  • loan-to-income (LTI) ratio EN

    The loan-to-income (LTI) ratio expresses a borrower’s debt as a multiple of income earned over one year. It is calculated by comparing the principal of the …

  • loan-to-value (LTV) ratio EN

    The loan-to-value (LTV) ratio shows what proportion of a property's value is represented by the outstanding loan. Expressed as a percentage, it is calculated by comparing …

  • loans for house purchase EN

    Housing loans are borrowing arrangements used by households to finance residential property. They cover the acquisition of an existing dwelling, the construction of a home and …

  • loans to euro area residents EN

    Loans to euro-area residents comprise credit supplied by monetary financial institutions to households, companies outside the financial sector and public authorities domiciled in the euro area. …