EBITDA and Liquidity Coverage Ratio: Difference between pages

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imported>Doug Williamson
(Add Depreciation to See also links.)
 
imported>Doug Williamson
(Link with Net stable funding ratio page.)
 
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[[Earnings]] Before Interest, Tax, [[Depreciation]] and [[Amortisation]].
''Bank regulation''.


A requirement under Basel III for banks to hold appropriate levels of high-quality liquid assets (HQLAs), generally at significantly higher levels than required under earlier regulations.


EBITDA is designed to compare underlying operating performance over time or between businesses, free from any distortions caused by differing financial structures, tax, or the historical cost of fixed assets.
The purpose of this requirement is to ensure that banks can manage stressed market conditions, under which the bank is assumed to suffer substantial outflows of the cash previously deposited with it.


It is sometimes written out in full in a slightly different order - especially in North America - as:
Earnings Before Tax, Interest, Depreciation and Amortisation.
(But it is still abbreviated to EBITDA in either case.)




== See also ==
== See also ==
* [[Earnings]]
* [[Basel III]]
* [[Depreciation]]
* [[Net stable funding ratio]]
* [[EBIT]]
* [[Cash investing in a new world]]
* [[EBITDA multiple]]
* [[Leverage ratio]]


[[Category:Corporate_finance]]
[[Category:Compliance_and_audit]]
[[Category:Long_term_funding]]
[[Category:Treasury_operations_infrastructure]]

Revision as of 16:12, 10 April 2015

Bank regulation.

A requirement under Basel III for banks to hold appropriate levels of high-quality liquid assets (HQLAs), generally at significantly higher levels than required under earlier regulations.

The purpose of this requirement is to ensure that banks can manage stressed market conditions, under which the bank is assumed to suffer substantial outflows of the cash previously deposited with it.


See also