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Paid-in-Capital
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Paid-in-capital the (equity) capital that the owners have
invested in the corporation.
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Pandemic Plan
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A pandemic plan is a documented policy, plan
or strategy within an organisation's business continuity planning
framework addressing the possible event of a widespread outbreak of
a dangerous infectious disease.
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Payment System
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A payment system is the infrastructure that
settles financial and other transactions or transfers funds between
financial institutions using established procedures and
protocols.
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People Risk
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People risk is associated with a potential
loss resulting from intentional or unintentional employee actions
such as improper record keeping, misuse of information, or
fraud.
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Permanent Financing
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Permanent financing provides capital either
through equity or long-term debt to purchase, develop, and operate
long-term fixed assets, such as factories, equipment and
machinery.
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Pillars of the Basel II Accord
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The Basel II Accord consists of three
pillars: Pillar 1 focuses on minimum capital requirements for the
three major risks bank face: credit risk, operational risk and
market risk; Pillar 2 focuses on supervisory review and processes
for capital adequacy; and Pillar 3 focuses on market discipline and
transparency.
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Plain Vanilla
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A plain vanilla is the standard type of a
financial asset or instrument.
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Point in Time (PIT) Capital Model
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Point in Time capital models determine
regulatory capital adequacy to reflect the risk, and the associated
regulatory capital requirements, at specific points in time.
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Portfolio
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A portfolio is a collection of investments,
such as stocks, bonds and cash equivalents, held by an institution
or a private individual.
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Position
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A position is the amount of a security
either owned (which constitutes a long position) or borrowed (which
constitutes a short position) by an individual or by a
dealer.
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Potential Future Exposure (PFE)
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Potential future exposure quantifies the
counterparty credit risk by evaluating existing trades, positions,
and other exposures in light of possible future variability in
market prices, rates or yields during their likely lifetime.
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Preferred Share
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A preferred share has properties of both
equity and debt, and are senior to common stock, but are
subordinated to bonds; usually they do not carry any voting
rights.
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Present Value
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Present value, the discounted value of
future payments, adjusts values to reflect the time value of money
and to make these values comparable.
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Price of Credit
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Price of credit is the rate charged for
accessing and using borrowed funds.
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Prime Lending Rate
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The prime lending rate is the rate the banks
typically charge their best customers.
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Principal
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The principal is the amount borrowed on a
credit and excludes interest or other charges.
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Private Offering
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A private offering raises capital by selling
new securities to a selected group of individuals, but not to the
public.
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Probabilistic Model
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A probabilistic model incorporate the
complex and interdependent behavior of complex assets and
liabilities, and incorporate statistical and quantitaive
modeling.
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Probability of Default (PD)
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The probability of default is the
probability that a borrower defaults.
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Project Finance
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Project finance provide funds for the
completion of large scale industrial or infrastructure projects
where the assets of the project are pledged as collateral for the
loan and the realized income or cash flow once the project is
completed is expected to repay the loan.
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Provision for Loan Loss
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Provision for loan losses is a cost recorded
on the income statement that represents funds set aside to absorb
anticipated loan losses.
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Public Borrower
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A public borrower is typically a sovereign
state, a provincial, or a local government including their
sub-entities.
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Public Offering
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A public offering raises capital by selling
new securities to the public.
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Purchasing Power Parity (PPP)
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Purchasing Power Parity is a theory of
long-term equilibrium exchange rates where the relative value of
two currencies is determined solely on the relative differences
between price levels of two countries.
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Put Option
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Put option, a financial derivative, gives
the right, but not the obligation to sell an agreed quantity of a
particular commodity or financial instrument from the seller of the
option at a certain time(expiration date) for a certain
price(strike price); where the seller is obligated to buy the
commodity or financial instrument should the buyer so decide.
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