Interbank Markets
CAMEL
Acronym for banks credit ratings
Interbank markets
Wholesale markets with no centralized market exchanges. Few restrictions.q
End of month
Value dates are adjusted to be the last day of the month
capital, assets,management, earnings, liquidity, sensitivity to market
Camel stands for
modified business day
Dates are adjusted for weekends/holidays to the next good business date, or previous if that day is in next month
fed wire
Federal reserve Banks RTGS system in which all payments are made in full immediately and no trades or other transactions are netted.
EURo1
Multilateral DNS system for credit transfers of higher priority and typically large denomination at both domestic and cross-border level.
CrestCREST
Operated by Euroclear. Provides real-time DVP for transaction in UK securities. Settles in a series of very high frequency cycles throughout the day.
Net stable funding ratio
Promotes resilience over a longer time horizon (one year) by incentivizing banks to fund their actives with more stable sources of funding.
Liquidity coverage ratio
Promotes short-term resilience of a bank's liquidity risk profile by ensuring that it has sufficient high-quality liquid assets to survive a significant stress scenario lasting for one month
CHAPS
Routed via the RTGS system and settled individually across the paying and receiving banks' settlement accounts held at bank of england
Real time gross settlement
Used to mitigate Counter party credit risk. system where transfers between banks are made by debiting and crediting their accounts at the central bank.
Following business day
Value dates adjusted for weekends/holidays to the next good business day
previous business day
Value dates are adjusted for weekends to the previous good business day
FEDWIRE, CHIPS
Two interbank settlements for USD
CHIPS
delayed net payment or deferred net settlement system. Combines the liquidity efficiency of a netting system with the intraday finality of an RTGS system.
Day count conventions
determines how interest accrues over a period of time
earnings mix
diversity of earnings
No date adjustment
value dates are not adjusted for weekends or holidays and are forced to mature within a cycle of days