Legal Risk- Legal risk includes, but is not limited to, the risk associated with the uncertainty of legal actions or the application or interpretation of contracts, laws, or regulations and can include potential exposure to fines, penalties, or punitive damages resulting from supervisory actions, as well as private settlements.

 

Lender of Last Resort- The lender of last resort, typically a central bank, assists banks facing unusually large and unexpected funding and other liquidity problems, or a systemic crisis by providing financing to the banks.

 

Lending Guideline- A lending guideline typically includes financial performance standards, collateral requirement standards, and possibly loan pricing standards to better link exposures to risks and pricing.

 

Lessee, Lessor- A lessee contracts with a lessor to use an asset that lessor owns, and in exchange for the lessee's right to use the asset, it will make regular contractual payment(s) to the lessor.

 

Letter of Credit- A letter of credit guarantees payment by a bank on behalf of its customer who pays a fee to the bank for providing the guarantee.LeverageLeverage, reflects the amount or proportion of debt used in the financing structure of an organization; the higher the leverage the more debt the company uses.

 

Liabilities- Liabilities consist of a bank's deposits and its borrowings.

 

LIBOR (London Interbank Offered Rate)- LIBOR, London Interbank Offered Rate, is a daily reference rate based on the average interest rate banks in London charge other banks, on the offer side of the transaction, when borrowing and lending.

 

Line of Credit- Line of credit is an uncommitted credit facility.LiquidityLiquidity refers to either market (transactional) or funding (payment) liquidity.Liquidity RiskLiquidity risk can be market (transactional) liquidity risk and funding (payment) liquidity risk.

 

Loan Loss Reserve- A loan loss reserve, or "allowance for loan losses" or a "credit loss reserve", is the portion of loans set aside to absorb anticipated loan losses.Loan PolicyThe loan policy outlines credit strategy, principles of lending practices, responsibility of relationship managers, the trade and business area, compliance requirements, loan and other credit products offered, and prohibited loans.

 

Loan Portfolio- A loan portfolio contains all the loans, leases, and other credits a bank has underwritten directly or participates in.

 

Loan Review- A loan review, an independent evaluation of compliance with loan, credit and undewriting policies, assurs compliance with credit standards and banking regulations and is typically carried out on behalf of the senior loan committee, senior management or the board of directors, by the bank's auditors.

 

Long Position- A long position, the opposite of short position, represents the ownership position of an asset; when the asset's value increases, the position increases in value and when the asset's value declines, the position decreases in value.

 

Long-Term Lending- Long-term lending has a maturity exceeding 15 years and finances major capital projects or expenditures.

 

Lookback Option- Lookback options, also known as Hindsight options are a type of path-dependent option where the payoff is dependent on the maximum or minimum asset price over the life of the option; and this is where the name comes from - the holder of the lookback can 'look back' over time to determine the payoff.

 

Loss Data Approach (LDA)- Loss Data Approach gathers internal loss data as the basis for an operational risk capital model.

 

Loss Data Program- Loss data program relates to the collection of loss event data, subject to specifications conditions that are outlined in the loss data or operational risk event policy.

 

Loss Given Default (LGD)- Loss Given Default is the actual loss suffered in the wake of a default, is a function of the recovery rate and the exposure at default.Control Indicator quantifies how effectively a specific control tool, approach, or methodology is working.

ר רועי פולניצר, MBA ,CRM , FRM הינו הבעלים של שווי פנימי - ייעוץ והדרכהשווי פנימי, רועי פולניצר, ניהול סיכונים, הערכות שווי, Intrinsic Value, Roi Polanitzer, Risk Management, Valuation, VaR, FRM. PRM, CRM. GARP, PRMIA, IARM