Affluent individuals possess significant discretionary income, allowing them financial comfort and flexibility, though they are not necessarily millionaires.
The Asset Protection Scheme (APS) is a government initiative designed to shield banks from significant losses by providing guarantees for certain risky assets, ensuring stability in the financial sector.
Balances held at the Bank of England by UK commercial banks, utilized for the settlement of interbank transactions through the clearing system.
The Bank for International Settlements (BIS) is an international financial institution that promotes cooperation among central banks and other agencies in pursuit of monetary and financial stability. Established in 1930, the BIS coordinates global financial policy and serves as a hub for central bank cooperation.
An international bank based in Basel, the Bank for International Settlements was founded in 1930 to manage post-World War I reparations. Its evolving role now includes setting capital adequacy ratios and serving as a forum for central banks.
Established in 1694, the Bank of England is the central bank of the UK and has been under public ownership since 1946. It plays a crucial role in the UK's financial and monetary policy.
Founded in 1694 as a private bank, the Bank of England developed into the UK's central bank by the 19th century. It controls the money supply, acts as banker for the government and other banks, and manages national debt and foreign exchange reserves.
The Bank of Jamaica is the central bank responsible for issuing currency and managing monetary policy in Jamaica.
The Bank of Japan (BoJ) is Japan's central bank, responsible for issuing and managing the yen, formulating and implementing monetary policy, and ensuring financial stability.
The Bank Recovery and Resolution Directive (BRRD) establishes a framework for dealing with failing banks within the European Union. This directive sets out measures for and the regulation of bank recovery and resolution to maintain financial stability and minimize taxpayer exposure to potential losses.
Bank regulation involves the application of public controls stricter than those on other businesses, justified by concerns that bank failures may disrupt the economy more severely than other business failures.
A comprehensive analysis of Bank Run, its historical context, causes, effects, and measures to prevent it. Explore the intricacies of financial crises and systemic risks associated with bank runs.
The Basel Accord refers to a set of international banking regulations put forth by the Basel Committee on Banking Supervision to promote stability in the global financial system.
The Basel Agreement established international risk-based capital adequacy standards for banks, ensuring a level playing field in global banking and enhancing financial stability.
Basel I focuses primarily on credit risk management, establishing the first set of international banking regulations to ensure financial stability and minimize risks in the banking sector.
An international standard for banking regulators published in June 2004, aimed at creating guidelines on capital adequacy to ensure that financial institutions hold enough capital to cover risks.
An in-depth look at Boom-Bust Cycles, their historical context, causes, consequences, and prevention strategies. Includes key events, detailed explanations, models, and examples.
Budgeting is a systematic method of creating a plan to allocate monetary resources for expenditures and savings to ensure financial stability.
Comprehensive overview of the Bundesbank, its history, structure, and significance in the European financial system.
Business Life Insurance is a financial product designed to protect business operations and maintain financial health by mitigating the impacts of key personnel loss.
Capital Adequacy is a measure of a bank's or financial institution's capital to ensure it can absorb potential losses and safeguard depositors' funds.
An in-depth exploration of capital adequacy, its significance for businesses, especially in the banking sector, regulatory frameworks like the Basel Accords, and its impact on financial stability.
An in-depth exploration of the Capital Adequacy Ratio (CAR), which measures a bank's capital in relation to its risk-weighted assets to ensure financial stability and statutory compliance.
An investment of capital into a company or institution, often to stabilize or grow operations. Discusses historical context, types, key events, mathematical models, and more.
Capital requirements are financial reserves that institutions must hold according to regulatory standards to safeguard against insolvency, ensuring stability in the financial system.
A comprehensive look at Capital Reserves, funds set aside for long-term projects, debt repayment, and managing unforeseen expenses.
Understanding the Cash Reserve Ratio (CRR), its importance, calculation, and impact on the banking sector and economy.
A Central Bank provides financial services for the government and commercial banks, implements monetary policy, manages reserves, and acts as a lender of last resort.
An in-depth examination of Taiwan's central banking institution, its history, responsibilities, key functions, and impact on the economy.
A comprehensive overview of the Central Bank of the Republic of Guinea (BCRG), its historical context, roles, functions, importance, and impact on Guinea's economy.
A regulatory mechanism that temporarily halts trading in stock markets during significant index declines to prevent extreme volatility and panic sell-offs.
The process by which market disturbances spread from one institution to others, influencing financial stability and market dynamics.
Contingent Convertible Bonds (CoCos) are hybrid financial instruments that function as bonds but can be converted into equity when certain trigger events occur. They serve a critical role in regulatory capital and financial stability.
Corporate Credit Ratings assess the creditworthiness of corporate entities, providing insights into their ability to repay debt. These ratings are crucial for investors, lenders, and the corporations themselves.
Crawling peg exchange rates represent a semi-fixed exchange rate regime where the exchange rate is adjusted periodically in small increments to achieve a desired rate over time, offering stability while accommodating gradual adjustments.
The fixed capital of a company, which provides assurance to creditors by indicating a stable financial base that cannot be reduced or distributed without special permission.
Currency reform involves the replacement of an existing currency by a new one, often to address issues such as inflation or to facilitate economic policy adjustments.
Understanding the Debt-to-Income Ratio (DTI), a crucial metric that evaluates a borrower's ability to manage monthly payments and repay debts relative to their income.
The Deposit Insurance Fund (DIF) is a fund maintained by the Federal Deposit Insurance Corporation (FDIC) used to insure deposits and cover institution failures, ensuring financial stability and depositor confidence.
Discharge refers to the release of a debtor from most provable debts at the end of bankruptcy proceedings, which may be subject to certain conditions or automatic under specific circumstances.
Companies that have consistently increased their dividend each year for at least 25 years.
A comprehensive set of financial regulations passed in 2010 aimed at preventing the recurrence of events that led to the 2007-2008 financial crisis.
The process where a country adopts the US dollar instead of or alongside its own currency to control inflation and stabilize the economy.
An in-depth exploration of the European Banking Authority (EBA), its role, historical context, and importance in the European financial system.
The European Central Bank (ECB) is a key institution in the European Union, responsible for managing the euro and implementing monetary policy within the Eurozone.
An in-depth look at the phenomenon of economic meltdown, including historical context, causes, effects, and key considerations.
Economic sustainability involves practices aimed at preserving and enhancing the economic health of communities and businesses over the long term. This concept is fundamental to ensuring enduring financial stability and growth.
An in-depth exploration of eligible liabilities, their types, regulatory context, importance in banking, and associated mathematical models.
The European Financial Stability Facility (EFSF) was established in 2010 as a temporary measure to stabilize the eurozone during financial crises by providing loans to member states.
The European Securities and Markets Authority (ESMA) is an independent European Union (EU) authority that contributes to safeguarding the stability of the EU’s financial system by enhancing investor protection and promoting stable and orderly financial markets.
An in-depth look at the European Stability Mechanism (ESM), its origins, operations, and significance in maintaining financial stability within the eurozone.
An overview of the European Stability Mechanism (ESM), an EU institution providing financial assistance to euro area member states experiencing or anticipating financial difficulties.
A comprehensive overview of the European System of Central Banks, its role, structure, and significance in maintaining financial stability across the European Union.
The European System of Financial Supervisors (ESFS) is a regulatory framework established by the European Union in response to the 2008 global financial crisis, comprising the European Supervisory Authorities (ESAs) - the EBA, ESMA, and EIOPA.
A U.S. government agency that insures deposits and oversees financial institutions to ensure stability and public confidence in the financial system.
An in-depth look into the Federal Deposit Insurance Corporation (FDIC), a US regulatory body established to insure deposits and maintain public confidence in the banking system.
An in-depth understanding of the Federal Reserve, the central banking system of the United States responsible for monetary policy, interest rate regulation, and financial stability.
The Federal Reserve Chair oversees the U.S. central banking system, guiding monetary policy, regulating financial institutions, and ensuring stability in the financial system.
Financial covenants are clauses included in loan agreements to ensure the financial stability of the borrower. They help protect lenders by setting specific requirements on financial performance.
An in-depth look at the Financial Policy Committee, its historical context, key roles, responsibilities, and impact on the financial system.
Comprehensive measures to evaluate the structural, institutional, and macroeconomic stability of financial systems.
The Financial Stability Board (FSB) is an international body that monitors and makes recommendations about the global financial system, enhancing global financial stability through coordinated international financial regulation.
Financial Stability Measures are essential quantitative tools that help determine a company's or group's ability to meet its financial obligations. These measures include the gearing ratio and interest cover, among others.
A comprehensive overview of the Financial Stability Oversight Council, its role in mitigating systemic risks in the financial system, its coordination with the Federal Reserve, and its impact on financial stability.
Financial Wellness refers to a state of financial stability where an individual can meet expenses and save for future needs. Explore its historical context, types, key events, and much more in this detailed guide.
A Fiscal Union is an advanced level of economic integration where participating countries coordinate their fiscal policies and share budgets. This concept plays a critical role in macroeconomic stability, risk-sharing, and reducing asymmetric shocks in the integrated region.
An in-depth overview of foreign exchange reserves, their purpose, historical context, key events, importance, applicability, and related terms.
Fractional Reserve Banking is a system where banks hold a minimum reserve of cash or liquid assets equal to a fixed percentage of their deposit liabilities, aimed at safeguarding the ability to meet obligations.
The G-10 is a group of eleven industrialized nations focused on ensuring international monetary and financial stability. This consortium plays a crucial role in global economic discussions and policy implementations.
An in-depth exploration of the Group of Ten, its history, functions, and impact on the global economy.
The Garn-St Germain Depository Institutions Act of 1982 is legislation that further deregulated savings and loan associations and implemented measures to improve the financial stability of the housing sector.
The Gearing Ratio measures the proportion of a company's debt relative to its equity, providing insight into its financial leverage and stability.
A comprehensive overview of Gold Reserves, their significance, historical context, management, and impact on global financial stability.
Hot Money refers to funds that are quickly moved between financial markets to capitalize on short-term gains. It presents both opportunities and risks for economies due to its volatile nature.
Housing Cost Burden refers to the percentage of a household's income that is spent on housing-related expenses, including rent or mortgage payments, utilities, and property taxes. A high housing cost burden can impact a household's financial stability and quality of life.
A comprehensive overview of the International Monetary Fund, its history, functions, and impact on the global economy.
The Insolvency Service is an executive agency of the Department for Business, Innovation and Skills that investigates the affairs of bankrupts and firms that have been liquidated by the court. It acts as a liquidator, supervises individual voluntary arrangements, and performs various other administrative functions.
A comprehensive examination of the Instability Index of Earnings, a crucial metric that measures the deviation between a company's actual profits and its trend profits.
Interbank loans are short-term loans made between banks to manage liquidity and meet regulatory requirements. They play a critical role in the financial system by facilitating smooth operations and stability among financial institutions.
Interest Cover, also known as the fixed-charge-coverage ratio, indicates the number of times a company's earnings before interest and tax (EBIT) can cover its interest expenses. It reflects the financial stability and vulnerability of a company to interest rate changes and profit fluctuations.
The IRSF was a financial mechanism created to stabilize government revenue flows during periods of economic volatility, lacking the long-term savings component found in modern stabilization funds.
A comprehensive article on the role of the central bank as the Lender of Last Resort, including historical context, key events, importance, applicability, examples, and more.
Standards ensuring institutions have enough liquid assets to meet short-term obligations.
A comprehensive comparison of Liquidity and Capital in the context of banking, exploring their roles, importance, and differences.
A comprehensive definition and explanation of Loan Loss Reserves, detailing its importance, calculation, and implications for financial institutions.
Loss Reserve encompasses financial reserves set aside by institutions to cover potential future claims and other forms of losses. This ensures financial stability and compliance with regulatory requirements.
An in-depth exploration of Mandatory Liquid Assets (MLA), their historical context, categories, key events, mathematical models, importance, and real-world applications.
A detailed overview of the total of a country's physical currency and reserves held at the central bank, known as the Monetary Base (M0).
A comprehensive analysis of the monetary policy strategy known as monetary easing, its types, historical context, examples, impacts, and related terms.
An in-depth look into Non-Performing Assets (NPA), understanding their historical context, types, key events, detailed explanations, and their significance in banking and finance.
An offtake agreement is a contract between a producer and a buyer to purchase or sell portions of the producer's future output. This document is essential in industries like mining and energy, helping to secure financial stability for producers and steady supply for buyers.
The Organization for Economic Co-operation and Development (OECD) is an international organization focused on developing economic and social policies to promote sustained economic growth and financial stability among its member states.
Comprehensive definition and analysis of pegged currency, with historical context and examples.
The Prudential Regulation Authority (PRA) is a UK regulatory body focused on the prudential regulation of banks and insurers.
An in-depth look at the Prudential Regulation Authority (PRA), including its history, functions, importance, and more.
An in-depth exploration of pro-cyclical policies, their types, key events, effects, and importance in economic theory and practice.
Prudential regulation refers to the framework of legal standards and guidelines designed to ensure the financial soundness of institutions, including capital adequacy, risk management, and governance requirements.
The Prudential Regulation Authority (PRA) is a part of the Bank of England responsible for prudential regulation of financial firms, maintaining financial stability by regulating and supervising banks, building societies, credit unions, insurers, and major investment firms.
Prudential supervision is the oversight of financial institutions to ensure they are financially sound, maintaining stability in the financial system.
An in-depth exploration of the quantity of money in circulation within an economy, encompassing various definitions and measures such as M0, M1, M2, M3, M4, and M5.
