The Advanced Internal Ratings Based Approach refers to a set of credit risk measurement techniques and capital adequacy rules outlined in the Basel II Accord that allows banks to develop their own empirical models to quantify the most inputs to quantify their required capital for credit risk.

The Advanced Measurement Approach is a sophisticated approach to calculate operational risk capital and allows the bank to use internally generated models to calculate their operational risk capital requirements.

Amortization is the repayment of debt in regular installments over a period of time.

Arbitrage is a trading strategy that seeks to generate a profit by exploiting price differences of identical or similar financial instruments, on different markets or in different forms.

An Asian option is a financial derivative and its final pay-off is determined by the average price of the underlying asset at specific dates or during a specific pricing window.

The Asset and Liability Management (ALM) function in a bank manages the risks caused by asset and liability mismatches as well as the interest rate risk in the bank's banking book and the bank's liquidity risk.

Asset-backed securities, backed by pools of mortgage loans or other types of securitizable cash flow generating assets, are sold to investors who then receive payments based on the cash flows generated by the assets in the underlying pool.

Asset based loans allow the borrower to pledge a specific asset or a combination of assets, such as inventory, machinery or equipment, as collateral to cover a loan.

Asset Liability Committee (ALCO) is typically a committee of senior managers and board members tasked with executing and overseeing the banks ALM activities.

Asset management is the management of financial assets and non-financial assets, and financial instruments to meet specified investment objectives; often refers to investment management.

An Asset Management Company (AMC) is an often separate entity tasked with managing assets on behalf of a principal; in banking and credit risk management, it typically refers to the long-term management a bad bank that manages, with a long-term mandate, non-performing loans and assets to maximize the maximal recovery value of those.

Asset transformation is the process of creating a new asset (loan) from liabilities (deposits) with different characteristics by converting small denomination, immediately available and relatively risk free bank deposits into loans--new relatively risky, large denomination asset--that are repaid following a set schedule.

Assets are tangible or intangible claims with economic value that an individual, corporation or other entity owns or controls with the expectation that it will provide future benefit.

An audit is the unbiased examination, analysis, and evaluation of an organization's financial position, business activities and internal processes executed internally, by employees of the organization, and/or externally, by an outside entity.