imported>Doug Williamson |
imported>Doug Williamson |
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| 1. ''Accounting.''
| | An undertaking given in a loan agreement by the borrower that it will operate its business within a financial constraint specified in the form of balance or other financial ratios. |
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| Profit margins measure the surplus of revenues over relevant costs, often expressed as a percentage.
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| Profit margins are usually expressed as a percentage of revenues, for example in the Net profit margin.
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| Less commonly, margins can also be expressed as a margin (percentage) on relevant costs.
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| Gross profit measured as a percentage of costs is also sometimes known as ''markup'', an amount added to costs to determine a selling price.
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| 2. ''Banking.''
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| Net interest margin (NIM).
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| 3. ''Bank lending.''
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| Lending margin is a percentage amount added explicitly to a market reference rate, to calculate the total rate of interest payable by a borrower.
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| 4. ''Derivatives markets.''
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| Margin is a refundable deposit payable by market participants to protect other participants in the market against the risk of a default.
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| In this context, margin is a form of collateral.
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| 5. ''Financing.''
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| An amount implicitly built in to a total interest rate or discount rate charged to a client to cover risk and a level of profit for the finance provider.
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| 6. ''Secured lending.''
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| An amount deducted from the value of an asset used as collateral, to calculate the maximum amount of any loan to be secured against the asset.
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| Also known as a 'haircut'.
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| 7. ''Project planning and management.''
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| A ''safety margin'' is an allowance for worsening of a key input or variable in a project.
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| 8.
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| Any other difference, usually a relatively small difference compared with the amounts themselves being compared.
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| For example, forward margin in foreign exchange markets.
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| == See also == | | == See also == |
| * [[Alternate Base Rate]] | | * [[Loan agreement]] |
| * [[Bank margin]]
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| * [[BCBS]]
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| * [[Collateral]]
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| * [[EMIR]]
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| * [[Exchange traded]]
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| * [[Forward margin]]
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| * [[Futures]]
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| * [[Haircut]]
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| * [[Initial margin]]
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| * [[IOSCO]]
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| * [[Maintenance margin]]
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| * [[Margin call]]
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| * [[Margin compression]]
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| * [[Margin of safety]]
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| * [[Margin on costs]]
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| * [[Margin risk]]
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| * [[Marginal]]
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| * [[Margining]]
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| * [[Markup]]
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| * [[Net profit margin]]
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| * [[NII]]
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| * [[NIM]]
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| * [[Over the counter]]
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| * [[Profit margin]]
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| * [[Stepped margin]]
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| * [[Sustainability Linked Loan Principles]]
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| * [[Tax sparing]]
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| * [[Variation margin]]
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| * [[WGMR]]
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| == External link ==
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| [https://www.bis.org/bcbs/publ/d499.pdf Margin requirements for non-centrally cleared derivatives - BCBS and IOSCO]
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| [[Category:Accounting,_tax_and_regulation]] | | [[Category:Legal_Documentation]] |
| [[Category:The_business_context]]
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| [[Category:Financial_products_and_markets]]
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