Basel Capital Accords and Regulatory Compliance
Expert-defined terms from the Professional Certificate in Credit Risk Management course at HealthCareCourses (An LSIB brand). Free to read, free to share, paired with a professional course.
Accord is a voluntary agreement between countries to establish a common s… #
Related terms include Basel III, regulatory compliance, and risk management.
Accounting standards refer to the rules and guidelines that govern… #
Related terms include GAAP, IFRS, and financial reporting. The Accounting standards are essential in the Professional Certificate in Credit Risk Management as they provide a framework for financial statement analysis.
Asset classification is the process of categorizing assets into different… #
Related terms include asset quality, credit grading, and portfolio management. Asset classification is crucial in credit risk management as it helps to identify and mitigate potential risk.
Asset correlation refers to the relationship between the values of… #
Related terms include correlation coefficient, diversification, and portfolio risk. Asset correlation is essential in credit risk management as it helps to diversify portfolios and reduce risk.
Asset liability management refers to the process of managing the risks… #
Related terms include asset liability management, interest rate risk, and liquidity risk. Asset liability management is critical in credit risk management as it helps to manage risk and maintain stability.
Backtesting is the process of evaluating the performance of a model</i… #
Related terms include model validation, stress testing, and sensitivity analysis. Backtesting is essential in credit risk management as it helps to evaluate the accuracy of models and identify potential risk.
Basel Committee on Banking Supervision is an international organiz… #
Related terms include Basel Accords, regulatory compliance, and banking supervision. The Basel Committee plays a critical role in credit risk management as it sets standards for banking regulation and supervision.
Basel II is a set of international banking regulations that aim to… #
Related terms include Basel III, regulatory compliance, and risk management. Basel II is essential in credit risk management as it provides a framework for risk management and regulatory compliance.
Basel III is a set of international banking regulations that aim t… #
Related terms include Basel II, regulatory compliance, and risk management. Basel III is critical in credit risk management as it provides a framework for risk management and regulatory compliance.
Capital adequacy refers to the requirement for banks to maintain a minimu… #
Related terms include capital requirements, regulatory compliance, and risk management. Capital adequacy is essential in credit risk management as it helps to ensure the stability of the financial system.
Capital management refers to the process of managing a bank's capital<… #
Related terms include capital adequacy, regulatory compliance, and risk management. Capital management is critical in credit risk management as it helps to manage risk and maintain stability.
Cash flow refers to the movement of money into or out of a business or <b… #
Related terms include cash flow statement, liquidity, and funding. Cash flow is essential in credit risk management as it helps to evaluate the creditworthiness of a borrower.
Cedit risk refers to the risk that a borrower will default … #
Related terms include credit scoring, credit worthiness, and default risk. Cedit risk is the primary focus of the Professional Certificate in Credit Risk Management.
Collateral management refers to the process of managing collateral … #
Related terms include collateral valuation, credit enhancement, and risk mitigation. Collateral management is essential in credit risk management as it helps to reduce risk and secure loans.
Compliance risk refers to the risk of non #
compliance with regulatory requirements or internal policies. Related terms include regulatory compliance, risk management, and audit. Compliance risk is critical in credit risk management as it helps to ensure regulatory compliance and reduce risk.
Counterparty risk refers to the risk that a counterparty will d… #
Related terms include counterparty credit risk, credit exposure, and default risk. Counterparty risk is essential in credit risk management as it helps to evaluate the creditworthiness of a counterparty.
Credit analysis refers to the process of evaluating the creditworthine… #
Related terms include credit scoring, credit worthiness, and default risk. Credit analysis is critical in credit risk management as it helps to evaluate the creditworthiness of a borrower.
Credit derivative refers to a financial instrument that is used to… #
Related terms include credit default swap, credit options, and credit insurance. Credit derivative is essential in credit risk management as it helps to manage credit risk and reduce exposure.
Credit enhancement refers to the use of collateral or other forms… #
Related terms include collateral management, credit worthiness, and default risk. Credit enhancement is essential in credit risk management as it helps to reduce risk and secure loans.
Credit limit refers to the maximum amount of credit that a lender… #
Related terms include credit exposure, credit worthiness, and default risk. Credit limit is critical in credit risk management as it helps to manage credit exposure and reduce risk.
Credit migration refers to the risk that a borrower's credit</b… #
Related terms include credit scoring, credit worthiness, and default risk. Credit migration is essential in credit risk management as it helps to evaluate the creditworthiness of a borrower.
Credit model refers to a mathematical model that is used to est… #
Related terms include credit scoring, credit worthiness, and default risk. Credit model is critical in credit risk management as it helps to evaluate the creditworthiness of a borrower.
Credit portfolio refers to a collection of credit exposures … #
Related terms include credit risk, portfolio management, and diversification. Credit portfolio is essential in credit risk management as it helps to manage credit risk and reduce exposure.
Credit rating refers to an evaluation of a borrower's creditwor… #
Related terms include credit scoring, credit worthiness, and default risk. Credit rating is critical in credit risk management as it helps to evaluate the creditworthiness of a borrower.
Credit risk refers to the risk that a borrower will default … #
Related terms include credit scoring, credit worthiness, and default risk. Credit risk is the primary focus of the Professional Certificate in Credit Risk Management.
Credit scoring refers to the use of statistical models to evalu… #
Related terms include credit rating, credit worthiness, and default risk. Credit scoring is essential in credit risk management as it helps to evaluate the creditworthiness of a borrower.
Default risk refers to the risk that a borrower will default</i… #
Related terms include credit risk, credit worthiness, and loss given default. Default risk is critical in credit risk management as it helps to evaluate the creditworthiness of a borrower.
Diversification refers to the process of managing risk by spreadin… #
Related terms include portfolio management, risk management, and asset allocation. Diversification is essential in credit risk management as it helps to reduce risk and increase returns.
Expected loss refers to the expected amount of loss that wi… #
Related terms include loss given default, probability of default, and exposure at default. Expected loss is critical in credit risk management as it helps to evaluate the creditworthiness of a borrower.
Exposure at default refers to the amount of exposure that a… #
Related terms include expected loss, loss given default, and probability of default. Exposure at default is essential in credit risk management as it helps to evaluate the creditworthiness of a borrower.
Financial regulation refers to the rules and guidelines tha… #
Related terms include regulatory compliance, banking regulation, and securities regulation. Financial regulation is critical in credit risk management as it helps to ensure stability and soundness of the financial system.
Financial statement refers to a document that provides information… #
Related terms include balance sheet, income statement, and cash flow statement. Financial statement is essential in credit risk management as it helps to evaluate the creditworthiness of a borrower.
Internal rating refers to a rating that is assigned to a borrower… #
Related terms include credit scoring, credit worthiness, and default risk. Internal rating is critical in credit risk management as it helps to evaluate the creditworthiness of a borrower.
Liquidity risk refers to the risk that a lender will not be able t… #
Related terms include liquidity management, cash flow, and funding liquidity. Liquidity risk is essential in credit risk management as it helps to manage risk and maintain stability.
Loss given default refers to the expected amount of loss… #
Related terms include expected loss, probability of default, and exposure at default. Loss given default is critical in credit risk management as it helps to evaluate the creditworthiness of a borrower.
Market risk refers to the risk that the value of a security … #
Related terms include market volatility, price risk, and liquidity risk. Market risk is essential in credit risk management as it helps to manage risk and maintain stability.
Operational risk refers to the risk of loss due to inadequa… #
Related terms include operational risk management, compliance risk, and reputational risk. Operational risk is critical in credit risk management as it helps to manage risk and maintain stability.
Probability of default refers to the probability that a bor… #
Related terms include expected loss, loss given default, and exposure at default. Probability of default is essential in credit risk management as it helps to evaluate the creditworthiness of a borrower.
Regulatory capital refers to the minimum amount of capital that a… #
Related terms include capital adequacy, regulatory compliance, and banking regulation. Regulatory capital is critical in credit risk management as it helps to ensure stability and soundness of the financial system.
Regulatory compliance refers to the requirement for banks to comply with… #
Related terms include regulatory capital, banking regulation, and securities regulation. Regulatory compliance is essential in credit risk management as it helps to ensure stability and soundness of the financial system.
Risk management refers to the process of identifying , assessing… #
Related terms include risk assessment, risk mitigation, and risk monitoring. Risk management is critical in credit risk management as it helps to manage risk and maintain stability.
Risk weighted assets refer to the assets of a bank that are wei… #
Related terms include risk management, capital adequacy, and regulatory compliance. Risk weighted assets are essential in credit risk management as they help to manage risk and maintain stability.
Securitization refers to the process of packaging and selling s… #
Related terms include asset backed securities, mortgage backed securities, and credit derivatives. Securitization is critical in credit risk management as it helps to manage risk and maintain stability.
Sensitivity analysis refers to the process of analyzing how change… #
Related terms include stress testing, scenario analysis, and sensitivity testing. Sensitivity analysis is essential in credit risk management as it helps to evaluate the robustness of models and systems.
Stress testing refers to the process of testing a system or… #
Related terms include sensitivity analysis, scenario analysis, and stress testing. Stress testing is critical in credit risk management as it helps to evaluate the robustness of models and systems.
Value at risk refers to the expected loss of a po… #
Related terms include expected shortfall, conditional value at risk, and value at risk metrics. Value at risk is essential in credit risk management as it helps to evaluate the risk of a portfolio.