Front loading and Balance sheet repair: Difference between pages

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Front loading as applied to derivatives is a term that describes the obligation to clear centrally an [[OTC]] [[derivative instrument]] or contract that is applied retrospectively.
''Capital adequacy - recapitalisation.''


It arises because there is a gap between the time that a [[CCP]] is authorised under [[EMIR]] and [[ESMA]]’s decision to mandate [[central clearing]] of certain derivatives.  During the early implementation stages of EMIR and the clearing obligation it may not be known at the time of executing a derivative trade whether it ultimately will be subject to frontloading or not.
Balance sheet repair means increasing the amount of equity capital in a bank or other organisation, especially following losses.


It is not known at the outset whether to price the transaction on the assumption that it will, or will not, be subject to central clearing during the life of the transaction.


:<span style="color:#4B0082">'''''Post-Lehman balance sheet repair'''''</span>


==See also==
:"On the demand side, fiscal expansions in the US and Europe, together with the end of the post-Lehman balance sheet repair phase, point to faster gains in spending growth compared with the post-Lehman decade."
*[[Central clearing]]
*[[Central counterparty]]  (CCP)
*[[Derivative instrument]]
*[[EMIR]]
*[[ESMA]]
* [[Over the counter]]  (OTC)


:''The Treasurer magazine, December 2023, Issue 4, p22 - Kallum Pickering, senior UK economist, Berenburg Bank.''


==External link==
[http://regtechfs.com/clearing-and-present-danger-nasdaq-omxs-emir-ccp-authorisation/ Clear(ing) and present danger] ''www.regtechfs.com''


[[Category:Financial_products_and_markets]]
== See also ==
* [[Bankruptcy]]
* [[Capital adequacy]]
* [[Central bank]]
* [[Credit crunch]]
* [[Equity]]
* [[Financial services]]
* [[Fiscal]]
* [[Global Financial Crisis]]
* [[Lehman]]
* [[Post-Lehman]]
* [[Recapitalise]]
 
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]

Latest revision as of 20:32, 4 December 2023

Capital adequacy - recapitalisation.

Balance sheet repair means increasing the amount of equity capital in a bank or other organisation, especially following losses.


Post-Lehman balance sheet repair
"On the demand side, fiscal expansions in the US and Europe, together with the end of the post-Lehman balance sheet repair phase, point to faster gains in spending growth compared with the post-Lehman decade."
The Treasurer magazine, December 2023, Issue 4, p22 - Kallum Pickering, senior UK economist, Berenburg Bank.


See also

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