Benchmark and Living will: Difference between pages

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1. ''Comparative measure.''
1.  


A measure stated on a standardised basis, to enable comparison.
A contingency plan of how a significant financial institution could be wound up by its supervisor in an orderly manner in the event of a collapse.


For example, an effective annual rate.
A requirement of the US Dodd-Frank financial reform law applied to financial institutions with total consolidated assets of $50 billion or more
and non-bank financial companies supervised by the Federal Reserve.




2. ''Standard of performance - quantitative.''
Similar requirements apply in other jurisdictions, in relation to institutions considered to be significant on the grounds of their size, degree of interconnectedness with other parts of the financial system, or both.


A quantified standard of performance set by the market (such as stock market index) or by an institutional investor (such as an internally developed benchmark) against which investment performance, or other performance, can be managed and tracked.
''Also known as a Resolution plan.''




3. ''Standard of performance - qualitative.''
2.  


A standard of performance including less readily quantified measures, such as satisfaction.
A set of instructions which specifies what actions are to be taken if an individual becomes unable to act personally due to illness or incapacity.


''Also known as an advance decision.''


4. ''Interest rate''


An officially published rate of interest, from which a rate of interest payable or receivable is calculated.
==See also==
* [[Bank supervision]]
* [[BRRD]]
* [[Dodd-Frank]]
* [[Recovery plan]]
* [[Resolution]]
* [[Resolution plan]]


Historically, for example, LIBOR.
A related rate of interest payable might be LIBOR + 1%.
''The Financial Stability Board (FSB) recommended in 2014 that stakeholders should identify risk-free rates that might be used as alternatives to LIBOR.''
5. ''Market price''
A market price for a widely traded quality and quantity of a commodity, used as a reference price in a contract.
For example, the price per barrel of Brent crude oil.
== See also ==
* [[Alternate Base Rate]]
* [[Baseline]]
* [[Base rate]]
* [[Benchmarking]]
* [[Benchmarks Regulation]]
* [[Climate benchmark]]
* [[Commodity]]
* [[Credit Benchmark]]
* [[Effective annual rate]]
* [[€STR]]
* [[EURIBOR]]
* [[European Money Markets Institute]]
* [[Fallback]]
* [[Financial Stability Board]]
* [[Fixing]]
* [[Good practice]]
* [[LIBOR]]
* [[Price fixing]]
* [[Rate fixing]]
* [[Risk-free rates]]
* [[Spread to Treasury/ Governments]]
* [[Stakeholder]]
* [[Sterling]]
===Other links===
[http://www.fca.org.uk/news/speeches/interest-rate-benchmark-reform-transition-world-without-libor A World without Libor - FCA speech - July 2018]
[[Media:ACT LMA Future of LIBOR Guide 0318.pdf| The future of LIBOR: what you need to know, ACT & LMA, March 2018]]
[[Media:Slaughter and May interest rate benchmarks.pdf| 2021: A Benchmark Odyssey, Practical Guidance for Treasurers on interest rate benchmarks, Slaughter and May]]
[[Category:The_business_context]]
[[Category:Compliance_and_audit]]
[[Category:Compliance_and_audit]]
[[Category:Financial_products_and_markets]]

Revision as of 18:56, 30 October 2016

1.

A contingency plan of how a significant financial institution could be wound up by its supervisor in an orderly manner in the event of a collapse.

A requirement of the US Dodd-Frank financial reform law applied to financial institutions with total consolidated assets of $50 billion or more and non-bank financial companies supervised by the Federal Reserve.


Similar requirements apply in other jurisdictions, in relation to institutions considered to be significant on the grounds of their size, degree of interconnectedness with other parts of the financial system, or both.

Also known as a Resolution plan.


2.

A set of instructions which specifies what actions are to be taken if an individual becomes unable to act personally due to illness or incapacity.

Also known as an advance decision.


See also