Financial regulation/Related Articles

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A list of Citizendium articles, and planned articles, about Financial regulation.
See also changes related to Financial regulation, or pages that link to Financial regulation or to this page or whose text contains "Financial regulation".

Index

See the related articles subpage to the article on economics [1] for an index to topics referred to in the economics articles.

Parent topics

  • Economics [r]: The analysis of the production, distribution, and consumption of goods and services. [e]
  • Macroeconomics [r]: The study of the behaviour of the principal economic aggregates, treating the national economy as an open system. [e]
  • Financial system [r]: The interactive system of organisations that serve as intermediaries between lenders and borrowers. [e]
  • Financial economics [r]: the economics of investment choices made by individuals and corporations, and their consequences for the economy, . [e]

Related topics

  • Asset price bubbles [r]: The condition of an asset market in which price is governed by speculators' expectations that it will increase. [e]
  • Bank failures and rescues [r]: an account of the occurrence , causes and consequences of bank failures, and of methods of dealing with them [e]
  • Banking [r]: the system of financial intermediation that provides the principle source of credit to individuals and companies. [e]
  • Monetary policy [r]: The economic policy instrument that is regularly used to stabilise the economy, and that has sometimes been used as a temporary expedient to relieve severe credit shortages. [e]

Glossary

For financial terms not listed below, see the financial system glossary[2]
  • Asset price bubbles [r]: The condition of an asset market in which price is governed by speculators' expectations that it will increase. [e]
  • Bank for International Settlements [r]: A forum of central bank governors and senior executives for the discussion and policy analysis whose standing committees include the Basel Committee on Banking Supervision. [e]
  • Banking [r]: the system of financial intermediation that provides the principle source of credit to individuals and companies. [e]
  • Bank failures and rescues [r]: an account of the occurrence , causes and consequences of bank failures, and of methods of dealing with them [e]
  • Basel I & Basel II [r]: international banking regulations put forth by the Basel Committee on Bank Supervision of the Bank for International Settlements requiring banks' minimum capital adequacy ratios to be related to the riskiness of their loans. [e]
  • Capital adequacy ratio [r]: The ratio of a bank's capital to its risk weighted credit exposures. May be defined in terms of tier 1 (core) or tier 2 capital. [e]
  • CDO [r]: Collateralised Debt Obligation. A portfolio of corporate bonds, grouped into tranches that are ranked by estimated risk. [e]
  • CDS [r]: Credit-Default Swap. An insurance agreement that guarantees protection against a bond default in return for a fee. [e]
  • Central counterparty [r]: An organisation that facilitates the settlement of contracts by acting as the buyer to every seller and as the seller to every buyer. [e]
  • Commercial bank [r]: a bank that accepts deposits and makes loans to individuals and businesses (also known as a "retail bank"). [e]
  • Contingent liability [r]: An obligation undertaken by a company that is dependent upon uncertain developments that are outside that company's control. [e]
  • Debt_instrument [r]: A formal obligation assumed by a borrower to replay the lender in accordance with the terms of an agreement, including bonds, debentures, promissory notes, leases and mortgages. [e]
  • Discounting [r]: (i) The action of selling a bill of exchange before its due payment (or "maturity") date "at a discount": that is to say after paying the purchaser a fee for accepting it. (ii) The practice of calculating the current equivalent of a future cost or benefit by the application of a chosen discount rate. [e]
  • Discount_rate [r]: (i) The percentage by which current value exceeds value in a year's time. (ii) The rate at which banks may borrow at their central bank's discount window. [e]
  • Discount window [r]: A facility provided by central banks that enables a bank to make secured short-term loans at its central bank's discount rate. [e]
  • Dynamic provisioning [r]: The banking practice of creating a balance sheet provision out of performing loans during an economic upturn and drawing upon it during a recession. [e]
  • Fair value [r]: An accounting convention under which the balance sheet valuation of an asset is an estimate of a price that would be fair to both a seller and a buyer of that asset, taking account of the advantages of the transaction to each (replacing the "historical" convention under which assets were valued at the price at which they had been acquired). [e]
  • Financial Stability Board [r]: An international economic group consisting of representatives of national financial authorities including finance ministers, central bankers, and senior members of other financial organisations. [e]
  • Financial Stability Forum see Financial Stability Board
  • Herding (finance) [r]: A tendency to base decisions upon the actions of others - on the part of bankers, depositors or investors. [e]
  • Information cascade [r]: A succession of incremental information distortions occurring as a result of herding behaviour. [e]
  • Investment bank [r]: a bank that raises finance for businesses by marketing new issues of equity and bonds. [e]
  • Leverage [r]: (i) The use of borrowing to increase the amount of money that is available for investment or consumption. (ii) A proportional measure of indebtedness, such as the ratio of a company's debt to its shareholders' equity (the same as British "gearing"), or the ratio of the indebtedness of a household to the net value of its assets (ie net of its debts). [e]
  • Mark to market [r]: A version of the fair value accounting convention that values a security at its current market price. [e]
  • Monetary policy [r]: The economic policy instrument that is regularly used to stabilise the economy, and that has sometimes been used as a temporary expedient to relieve severe credit shortages. [e]
  • Money market [r]: A market for short-term debt instruments (generally of maturity after less than one year) such as certificates of deposit, commercial paper, and Treasury bills. [e]
  • Moral hazard [r]: Motivation to take an otherwise unwarranted risk because the cost of an unfavourable outcome would be borne by someone other than the risk-taker. [e]
  • Noise_traders [r]: Traders who buy or sell shares for reasons unconnected with information about the issuing companies or the markets in which they operate. [e]
  • Off balance sheet items [r]: Contingent liabilities (such as guarantees, letters of credit, and interest rate swaps) that under current accounting conventions are not shown on a company's balance sheet . [e]
  • Positive feedback [r]: A systemic reaction to an occurrence that has the effect of increasing the magnitude of that occurrence. [e]
  • Securitisation [r]: The conversion of a cash flow into a marketable security (usually a claim upon debt repayments) and often categorised according to the expected risk of default (examples include collateralised debt obligations and structured investment vehicles.) [e]
  • Selling short [r]: Selling borrowed stock in the expectation that its price will fall, and with the intention of subsequently buying it back and returning it. [e]
  • Stress test [r]: Graded test to measure an individual's heart rate and oxygen intake while undergoing strenuous physical exercise. [e]
  • Structured investment vehicle [r]: (SIV) a fund that borrows money - usually at LIBOR rates - by the issue of asset backed commercial paper and uses it to finance longer term loans at higher interest rates. [e]
  • Tail risk [r]: the risk that arises in a situation in which the probability of an occurrence that is three standard deviations away from the mean is greater than it is in a normal distribution. [e]
  • Tier 1 capital [r]: A measure of a bank's financial strength used by the Bank for International Settlements (BIS): shareholders' funds plus irredeemable and non-cumulative preference shares and excluding hybrid forms of capital like goodwill [e]
  • Tier 2 capital [r]: A definition of banking capital that includes subordinated debt, convertible securities, and a portion of the loan loss reserves for possible bad loans. [e]