Glossary of Terms & Acronyms – Bank Strategy

A
ACPR Autorite de Controle Prudential et de Resolution (France)
ADI      Authorised Deposit-taking Institution
A-IFRS Australian equivalents to International Financial Reporting Standards
AMA    Advanced Measurement Approach (Operational Risk)
AML-CTF Anti-Money Laundering and Counter-Terrorism Financing
APRA Australian Prudential Regulation Authority
APS APRA Prudential Standard for Authorised Deposit-Taking Institutions
ARROW Advanced, Risk-Responsive Operating FrameWork

(UK FSA supervisory tool. De-commissioned in 2010.)

ASIC Australian Securities and Investments Commission
AT1 Additional Tier 1 (capital)
Authorised Deposit-taking Institution

(APRA definition)

A body corporate authorised under section 9 of the Australian Banking Act 1959 to carry on banking business in Australia (e.g. a bank, building society or credit union).
B
Bank

(BIS definition)

An entity whose business is to receive deposits, or close substitutes for deposits, from the public and to grant credits for its own account. Banks include the following entities: commercial banks, universal banks, savings banks, post banks, giro institutions, agricultural credit banks, cooperative credit banks and credit unions.
BCBS Basel Committee on Banking Supervision
BCPs                 Basel Core Principles
BCPs (2006)      Basel Core Principles (2006 version)
BCPs (2012) Basel Core Principles (2012 version)
BEAR The Banking Executive Accountability Regime set out in Part IIAA of the Australian Banking Act 1959. Introduced by the Australian Parliament in February 2018, Australia to establish clear and heightened expectations of accountability for authorised deposit-taking institutions (ADIs), their directors and senior executives, and to ensure there are clear consequences in the event of a material failure to meet those expectations. T
BIS Bank for International Settlements
C
CAR Capital Adequacy Ratio
CAMELS Capital Adequacy, Assets, Management Capability, Earnings, Liquidity,

Sensitivity to Market Risk (Ratings tool used by several US regulatory authorities)

CEBS Committee of European Banking Supervisors
CET1 Common Equity Tier 1 (Capital)
COBA Customer-Owned Banking Association (Australia)
Corporate Governance

(BCBS definition)

A set of relationships between a company’s management, board, shareholders and other stakeholders which provides the structure through which the objectives of the company are set, and the means of attaining those objectives and monitoring performance.
CPS APRA Cross-Industry Prudential Standard
CRAFT Comprehensive Risk Assessment Framework and Techniques (MAS)
D
D-SIB                Domestic Systemically Important Bank
E
EBA European Banking Authority
EC European Commission
ECAI External Credit Assessment Institution
ESAs European Supervisory Authorities
ESRB European Systemic Risk Board
F
FATF                 Financial Action Task Force on Money Laundering and Terrorism Financing
FCA Financial Conduct Authority (United Kingdom)
Financial Institution
(BIS definition)
An entity that is principally engaged in providing financial services, such as financial intermediation, financial risk management or liquidity transformation.
FSAP Financial Sector Assessment Program
FSB Financial Stability Board
G
GAAP Generally Accepted Accounting Principles
G-SIB Global Systemically Important Bank
H
Home regulator

 

The supervisory or equivalent authority in which the controlling parent of a regulated financial institution is located.
Host regulator

 

The supervisory or equivalent authority in which a branch, subsidiary or joint venture of the regulated financial institution is incorporated.
I
IFRS International Financial Reporting Standards
IMF      International Monetary Fund
ICBS     International Conference of Banking Supervisors
IRB Internal Ratings-Based Approach (Credit Risk)
ITE Intra-Group Transactions and Exposures
K
KYC      Know Your Customer
L
LCR Liquidity Coverage Ratio
LGD Loss Given Default
M
MAS Monetary Authority of Singapore
Misconduct Risk

(General definition)

The potential for behaviours or business practices that are illegal, unethical, or contrary to a firm’s stated beliefs, values, policies and procedures.
N
NSFR Net Stable Funding Ratio
O
OJK Otoritas Jasa Keuangan, or Indonesia Financial Services Authority
OSFI Office of the Superintendent of Financial Institutions (Canada)
P
PAIRS Probability and Impact Rating System (APRA supervisory tool)
PoNV Point of Non-Viability
PD Probability of Default
PPG APRA Prudential Practice Guide
PRA Prudential Regulation Authority (United Kingdom)
PSMOR Principles for the Sound Management of Operational Risk (BCBS)
R
RCAP    Regulatory Consistency Assessment Programme
 Risk Culture

(General definition)

A system of shared values and norms that define appropriate attitudes and behaviours for organisational members.
RWA Risk-Weighted Asset(s)
S
SEC Securities Exchange Commission (United States)
SSBs Standard Setting Bodies
SWIFT Society of Worldwide Interbank Financial Telecommunications
T
TBTF Too Big to Fail
TBTI Too Big to Ignore
TSTC Too Small to Care
T
VaR Value-at-Risk

Note: For a glossary of terms and abbreviations specific to “banking cyber-security and cyber-resilience”, please click here.

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