{"id":5707,"date":"2016-12-22T11:40:52","date_gmt":"2016-12-22T06:10:52","guid":{"rendered":"http:\/\/race4job.com\/blog\/?p=5707"},"modified":"2016-12-22T11:44:46","modified_gmt":"2016-12-22T06:14:46","slug":"banking-terminology-8","status":"publish","type":"post","link":"https:\/\/www.race4job.com\/blog\/banking-terminology-8\/","title":{"rendered":"Banking Terminology"},"content":{"rendered":"<p><span style=\"color: #ff0000;\">Hybrid debt capital instruments :<\/span><span style=\"color: #000000;\"> In this category, fall a number of capital instruments, which combine certain characteristics of equity and certain characteristics of debt. Each has a particular feature, which can be considered to affect its quality as capital. Where these instruments have close similarities to equity, in particular when they are able to support losses on an ongoing basis without triggering liquidation, they may be included in Tier II capital.<\/span><br \/>\n<span style=\"color: #ff0000;\">BASEL Committee on Banking Supervision:\u00a0<\/span><span style=\"color: #000000;\">The BASEL Committee is a committee of bank\u00a0<\/span><span style=\"color: #000000;\">supervisors consisting of members from each of the\u00a0<\/span><span style=\"color: #000000;\">G10 countries. The Committee is a forum for\u00a0<\/span><span style=\"color: #000000;\">discussion on the handling of specific supervisory\u00a0<\/span><span style=\"color: #000000;\">problems. It coordinates the sharing of supervisory\u00a0<\/span><span style=\"color: #000000;\">responsibilities among national authorities in respect\u00a0<\/span><span style=\"color: #000000;\">of banks\u2019 foreign establishments with the aim of\u00a0<\/span><span style=\"color: #000000;\">ensuring effective supervision of banks\u2019 activities\u00a0<\/span><span style=\"color: #000000;\">worldwide.<\/span><\/p>\n<p><span style=\"color: #ff0000;\">BASEL Capital accord:<\/span><span style=\"color: #000000;\">The BASEL Capital Accord\u00a0<\/span><span style=\"color: #000000;\">is an Agreement concluded among country\u00a0<\/span><span style=\"color: #000000;\">representatives in 1988 to develop standardised riskbased\u00a0<\/span><span style=\"color: #000000;\">capital requirements for banks across countries.\u00a0<\/span><span style=\"color: #000000;\">The Accord was replaced with a new capital adequacy\u00a0<\/span><span style=\"color: #000000;\">framework (BASEL II), published in June 2004.\u00a0<\/span><span style=\"color: #000000;\">BASEL II is based on three mutually reinforcing\u00a0<\/span><span style=\"color: #000000;\">pillars hat allow banks and supervisors to evaluate\u00a0<\/span><span style=\"color: #000000;\">properly the various risks that banks face. These<\/span><br \/>\n<span style=\"color: #000000;\">three pillars are:<\/span><\/p>\n<ul>\n<li>\u00a0<span style=\"color: #000000;\">Minimum capital requirements, which seek to\u00a0refine the present measurement framework.<\/span><\/li>\n<\/ul>\n<ul>\n<li><span style=\"color: #000000;\">\u00a0supervisory review of an institution\u2019s capital\u00a0adequacy and internal assessment process;<\/span><\/li>\n<\/ul>\n<ul>\n<li><span style=\"color: #000000;\">market discipline through effective disclosure to\u00a0encourage safe and sound banking practices.<\/span><\/li>\n<\/ul>\n<p><span style=\"color: #ff0000;\">Risk Weighted Asset:<\/span><span style=\"color: #000000;\"> The notional amount of the\u00a0<\/span><span style=\"color: #000000;\">asset is multiplied by the risk weight assigned to the\u00a0<\/span><span style=\"color: #000000;\">asset to arrive at the risk weighted asset number.\u00a0<\/span><span style=\"color: #000000;\">Risk weight for different assets vary e.g. 0% on a\u00a0<\/span><span style=\"color: #000000;\">Government Dated Security and 20% on a AAA rated\u00a0<\/span><span style=\"color: #000000;\">foreign bank etc.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Hybrid debt capital instruments : In this category, fall a number of capital instruments, which combine certain characteristics of equity and certain characteristics of debt. Each has a particular feature, which can be considered to affect its quality as capital. Where these instruments have close similarities to equity, in particular when they are able to [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-5707","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.race4job.com\/blog\/wp-json\/wp\/v2\/posts\/5707","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.race4job.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.race4job.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.race4job.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.race4job.com\/blog\/wp-json\/wp\/v2\/comments?post=5707"}],"version-history":[{"count":1,"href":"https:\/\/www.race4job.com\/blog\/wp-json\/wp\/v2\/posts\/5707\/revisions"}],"predecessor-version":[{"id":5709,"href":"https:\/\/www.race4job.com\/blog\/wp-json\/wp\/v2\/posts\/5707\/revisions\/5709"}],"wp:attachment":[{"href":"https:\/\/www.race4job.com\/blog\/wp-json\/wp\/v2\/media?parent=5707"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.race4job.com\/blog\/wp-json\/wp\/v2\/categories?post=5707"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.race4job.com\/blog\/wp-json\/wp\/v2\/tags?post=5707"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}