Loss absorption amount and Model: Difference between pages

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imported>Doug Williamson
(Create the page. Source: BoE http://www.bankofengland.co.uk/financialstability/Documents/resolution/mrelconsultation2015.pdf)
 
imported>Doug Williamson
(Add link.)
 
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''Bank [[resolution]] and [[recovery]] - capital adequacy.''
1.  ''Spreadsheets - financial models.''


The loss absorption amount is the component of a bank's Minimum Requirement for own funds and Eligible Liabilities (MREL) which is considered necessary to absorb losses up to and in resolution.
A representation of a real situation using a selected set of simplifying assumptions and relationships.  


MREL comprises the total of a bank's:
*Loss absorption amount; and
*Recapitalisation amount.


In finance, financial models are widely used as tools for valuation and to support financial decisions.


==See also==
An important benefit of well-structured financial models is to facilitate sensitivity analysis and stress testing.


*[[Capital adequacy]]
 
*[[MREL]]
2.  ''Best practice - good practice.''
*[[Recapitalisation amount]]
 
*[[Resolution]]
Something designed or selected as a good example to be followed.
*[[Total Loss Absorbing Capacity]]
 
For example, the OECD model tax convention.
 
 
== See also ==
* [[Agent based modelling]]
* [[Best practice]]
* [[Binomial option pricing model]]
* [[Black Scholes option pricing model]]
* [[Business model]]
* [[Capital asset pricing model]] (CAPM)
* [[Decision tree]]
* [[Deterministic]]
* [[Dividend growth model]] (DGM)
* [[FAST Modelling Standard]]
* [[Financial model]]
* [[Five Forces model]]
* [[Four-corner model]]
* [[Four way equivalence model]]
* [[Game]]
* [[Good practice]]
* [[Model risk]]
* [[Modelling]]
* [[Mostly positive]]
* [[OECD model tax convention]]
* [[Scenario analysis]]
* [[Sensitivity analysis]]
* [[Shadow model]]
* [[Spreadsheet]]
* [[Stochastic]]
* [[Stress test]]
* [[Tab]]
* [[Three-corner model]]
* [[Three Lines of Defence Model]]
* [[Workbook]]
 
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Financial_products_and_markets]]

Revision as of 10:59, 5 July 2022

1. Spreadsheets - financial models.

A representation of a real situation using a selected set of simplifying assumptions and relationships.


In finance, financial models are widely used as tools for valuation and to support financial decisions.

An important benefit of well-structured financial models is to facilitate sensitivity analysis and stress testing.


2. Best practice - good practice.

Something designed or selected as a good example to be followed.

For example, the OECD model tax convention.


See also