Instalment and Regulatory capital: Difference between pages

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An agreed payment made by a borrower to a lender, as one amount in a schedule of payments over a period of time.
''Bank supervision - capital adequacy''


If the instalments are of equal value they are said to be equated.
1.  


Items of capital and types of capital instrument which are eligible for inclusion in the calculation of a bank's capital resources for regulatory purposes.


Repayment of a loan by equated instalments ensures that the total cash payable by the borrower, comprised of interest plus principal, remains the same for each instalment.  Most repayment mortgages are set up in this way.


Equated instalments pay off varying proportions of interest and principal within each instalment, so that by the end of the schedule of instalments, the loan is paid off in full.
2.
The proportion of interest is greatest at the start, and least at the end.


The minimum level of capital required by the regulator, as defined by the inclusion of eligible capital items only.


An alternative spelling is ''installment''.


 
== See also ==
==See also==
* [[Bank supervision]]
*[[Annuity factor]]
* [[Capital]]
*[[Interest]]
* [[Capital adequacy]]
*[[Loan]]
* [[Economic capital]]
*[[Principal]]
 
 
=== Other resources ===
[[Media:2014_11_Nov_-_Ever_deceasing_circles.pdf| Ever decreasing circles, The Treasurer, 2014]]
 
[[Category:Long_term_funding]]

Revision as of 14:46, 13 November 2016

Bank supervision - capital adequacy

1.

Items of capital and types of capital instrument which are eligible for inclusion in the calculation of a bank's capital resources for regulatory purposes.


2.

The minimum level of capital required by the regulator, as defined by the inclusion of eligible capital items only.


See also

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