Study Guide · Chapter 7
Financial Statements, Ratios & Risk
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19 key terms | One-line exam reference
| Abbreviation | One-line meaning |
|---|---|
| BCP | Business Continuity Plan — plan for maintaining operations during disruption. |
| CAR | Capital Adequacy Ratio — capital held relative to risk-weighted assets. |
| CET1 | Common Equity Tier 1 — highest-quality form of regulatory bank capital. |
| CRAR | Capital to Risk-Weighted Assets Ratio — regulatory capital ratio for banks. |
| DR | Disaster Recovery — restoration of systems after a disruptive event. |
| EBITDA | Earnings Before Interest, Tax, Depreciation and Amortisation. |
| EPS | Earnings Per Share — profit attributable to each outstanding equity share. |
| KPI | Key Performance Indicator — measurable indicator of performance. |
| KRI | Key Risk Indicator — metric signalling the level or movement of a risk. |
| LCR | Liquidity Coverage Ratio — liquid assets required for short-term stress. |
| MFA | Multi-Factor Authentication — authentication using two or more factors. |
| NII | Net Interest Income — interest earned minus interest paid. |
| NIM | Net Interest Margin — net interest income relative to earning assets. |
| NSFR | Net Stable Funding Ratio — stable funding requirement for resilience. |
| PAT | Profit After Tax — profit remaining after all taxes are deducted. |
| PBT | Profit Before Tax — profit before tax expense is deducted. |
| ROA | Return on Assets — profit earned relative to total assets. |
| ROE | Return on Equity — profit earned relative to shareholders’ equity. |
| RWA | Risk-Weighted Assets — assets weighted according to their risk. |
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