Financial system/Related Articles

See also changes related to Financial system, or pages that link to Financial system or to this page or whose text contains "Financial system".

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Index

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

Parent articles

Economics

Subtopics

Banking

Bank failures and rescues

Related topics

Financial economics

Crash of 2008

Discount rate

Glossary

(For definitions not shown below, see the economics glossary [2])

• 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]
• Bill (finance) [r]: {a) A loan with a duration of no more than a year (b)a documentary record of short-term indebtedness. ^[e]
• Bond (finance) [r]: a fixed-interest security issued by governments, companies, banks and others. ^[e]
• Broker [r]: Individual or firm that provides investment advise to clients and executes their buying and selling instructions, usually by acting as a market maker. ^[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]
• CDS spread [r]: the annual percentage charge for a credit default swap ^[e]
• Central Bank [r]: A government agency that is responsible for monetary policy and the support of the banking system (for example the Federal Reserve Board and the Bank of England). Usually responsible for controlling a country's monetary policy and preserving the value of its currency. ^[e]
• Complex interactive system [r]: A system in which an event in one of its components can have significant repercussions in many other components; and which can exist in more states than can be enumerated - including "open systems" whose operation is affected by events that have been generated from outside (such as international trade in the case of an economic system). ^[e]
• Commercial paper [r]: unsecured debt_instruments that are issued by corporations to meet short term financing needs (usually repayable after 3 months). ^[e]
• Credit risk [r]: The risk that the value of a loan-based security will fall as a result of defaults on the part of borrowers (as distinct from interest rate risks and exchange rate risks). ^[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]
• Derivative [r]: An asset whose value depends upon the expected value of another asset. ^[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]
• Financial_Intermediary [r]: A go-between organisation that obtains finance from investors (or savers) and lends it to corporations (or other borrowers). Financial intermediaries include banks, building societies (or savings and loans associations) , life insurance companies and credit unions. ^[e]
• Financial_regulator [r]: The United States Securities and Exchange Commission gives as its mission "to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation". Financial regulators in other countries have similar responsibilities. ^[e]
• Hedging [r]: Protecting against price changes by simultaneously buying(/selling) an asset and making a futures contract to sell(/buy) it. ^[e]
• Hedge fund [r]: Add brief definition or description
• Interbank market [r]: Add brief definition or description
• Interest rate risk [r]: Add brief definition or description
• Internal rate of return [r]: Add brief definition or description
• Lender of last resort [r]: Add brief definition or description
• Leverage [r]: Add brief definition or description
• LIBOR [r]: Add brief definition or description
• Liquidity [r]: Add brief definition or description
• Liquidity risk [r]: Add brief definition or description
• Margin account [r]: Add brief definition or description
• Margin call [r]: Add brief definition or description
• Market risk [r]: Add brief definition or description
• Money market [r]: Add brief definition or description
• Moral hazard [r]: Add brief definition or description
• Net present value [r]: Add brief definition or description
• Option [r]: Add brief definition or description
• Portfolio insurance [r]: Add brief definition or description
• Selling short [r]: Add brief definition or description
• Sovereign spread [r]: Add brief definition or description

Spread   see Yield spread

• Structured investment vehicle [r]: Add brief definition or description
• Subprime lending [r]: Add brief definition or description
• Tail risk [r]: Add brief definition or description
• Value at risk [r]: Add brief definition or description
• Warrant [r]: Add brief definition or description
• Wholesale banking [r]: Add brief definition or description
• Yield spread [r]: Add brief definition or description