Market Risk Capital definition

Market Risk Capital means an amount of Permanent Capital equal to the sum of the market value of the FHLBI’s portfolio at risk and the amount by which the current market value of Total Capital is less than eighty-five percent (85%) of the book value of Total Capital. The risk to the portfolio is defined as that arising from movements in interest rates, foreign exchange rates, commodity prices, and equity prices which might arise during periods of market stress, as measured by an internal market risk model that estimates the market value of all of the FHLBI’s instruments and market value of the portfolio at risk, as more fully described in 12 C.F.R. §932.5(b). The market risk model will be validated annually by knowledgeable FHLBI staff outside the FHLBI’s Treasury Department or by a qualified third party, with results reviewed by the Board of Directors and provided to the Finance Board.
Sample 1Sample 2
Market Risk Capital means an amount of Permanent Capital required by the Capital Regulations to support the market risk to which the Bank is exposed.
Sample 1Sample 2Sample 3

Examples of Market Risk Capital in a sentence

  • Banks That Are Subject to the Market Risk Capital Rule The banking agencies' regulatory capital rules require all banks with significant market risk to measure their market risk exposure and hold sufficient capital to mitigate this exposure.

  • An Authorised Firm should refer to chapters 4, 5 and 6 to determine whether it is required to calculate a Credit Risk Capital Requirement (also referred to in this module as CRCOM), a Market Risk Capital Requirement or an Operational Risk Capital Requirement, respectively.

  • Market Risk Capital Requirement 3.8.4 An Authorised Firm must calculate its Market Risk Capital Requirement in accordance with the applicable Rules in chapter 5.

  • Detailed Rules and Guidance in respect of the Market Risk Capital Requirement and each of its components are contained in chapter 5.

  • Interest rate pre-processing models are used to calculate weighted positions for inclusion in an Authorised Firm’s interest rate Market Risk Capital Requirement calculation under the Duration Method.

  • This section sets out the conditions under which an Authorised Firm is permitted to use an internal model to calculate its Market Risk Capital Requirement or any component of its Market Risk Capital Requirement.

  • This applies even if the nature of the business means that the only risks being incurred by the Authorised Firm are Counterparty risks (that is, no Market Risk Capital Requirements apply).

  • Regulatory Capital Rules: Regulatory Capital, Implementation of Basel III, Capital Adequacy, Transition Provisions, Prompt Corrective Action, Standardized Approach for Risk-weighted Assets, Market Discipline and Disclosure Requirements, Advanced Approaches Risk-Based Capital Rule, and Market Risk Capital Rule, 78 Fed.

  • In addition, monthly limits compliance is reported to the ALCO.The Bank has developed the internal model to calculate VaR, however, it is not yet approved by the Central Bank as the regulator iscurrently applying and requiring banks to calculate the Market Risk Capital Requirements according to Basel II Standardized Approach.

  • An Authorised Firm should refer to chapters 4 and 5 to determine whether it is required to calculate a Credit Risk Capital Requirement and a Market Risk Capital Requirement respectively.

Related to Market Risk Capital

  • Barclays Capital is a reference to Barclays Capital, the investment banking division of Barclays Bank PLC;

  • Private Investment means a securities offering that is exempt from registration under certain provisions of the U.S. securities laws and/or similar laws of non-U.S. jurisdictions. It includes investments in hedge funds, private equity funds, limited partnerships, real estate, peer to peer lending clubs and private businesses.

  • Motorsport Australia means the Confederation of Australia Motor Sport Ltd. trading as Motorsport Australia;

  • Financial Futures Contract means the firm commitment to buy or sell fixed income securities including, without limitation, U.S. Treasury Bills, U.S. Treasury Notes, U.S. Treasury Bonds, domestic bank certificates of deposit, and Eurodollar certificates of deposit, during a specified month at an agreed upon price.

  • Financial Products “Development Services”; “Target Market”; “Investment Areas”; and “Targeted Populations” have the meanings ascribed to such terms in 12 C.F.R. 1805.104.

  • Alternative investment means an investment in a private equity fund, venture fund, hedge fund, or absolute return fund.

  • PIPE Investment has the meaning specified in the Recitals hereto.

  • Additional Financial Centre(s means the city or cities specified as such in the relevant Final Terms;

  • Financial Services means any service of a financial nature, including (but not limited to) —

  • Risk-Based Capital Guidelines means (i) the risk-based capital guidelines in effect in the United States on the date of this Agreement, including transition rules, and (ii) the corresponding capital regulations promulgated by regulatory authorities outside the United States implementing the July 1988 report of the Basle Committee on Banking Regulation and Supervisory Practices Entitled "International Convergence of Capital Measurements and Capital Standards," including transition rules, and any amendments to such regulations adopted prior to the date of this Agreement.

  • Financial Crime Risk Management Activity means any action to meet Compliance Obligations relating to or in connection with the detection, investigation and prevention of Financial Crime that the Bank or members of the HSBC Group may take.

  • financial holding company means a financial holding company as defined in point (20) of Article 4(1) of Regulation (EU) No 575/2013;

  • Financial Centre means such financial centre or centres as may be specified in relation to the relevant currency for the purposes of the definition of “Business Day” in the ISDA Definitions or indicated in the Final Terms or, in the case of Covered Bonds denominated in euro, such financial centre or centres as the Calculation Agent may select.

  • Credit Risk Management Fee The amount payable to the Credit Risk Manager on each Distribution Date as compensation for all services rendered by it in the exercise and performance of any and all powers and duties of the Credit Risk Manager under the Credit Risk Management Agreements, which amount shall equal one twelfth of the product of (i) the Credit Risk Management Fee Rate multiplied by (ii) the Stated Principal Balance of the Mortgage Loans and any related REO Properties as of the first day of the related Due Period.

  • Barclays shall have the meaning assigned to such term in the preamble to this Agreement.

  • Principal Financial Centre means, in relation to any currency, the principal financial centre for that currency provided, however, that:

  • Total risk-based capital ratio means the Total Risk-Based Capital Ratio determined in accordance with the rules and regulations of the appropriate Regulatory Authority as from time to time in effect, and any successor or other regulation or official interpretation of said Regulatory Authority relating thereto.

  • Net Capital Net Capital shall mean "net capital" as defined in Rule 15c3-1.

  • Minimum capital or "minimum required capital" means the capital that must be constantly maintained by a stock insurance corporation as required by statute.

  • Relevant Financial Centre means, with respect to any Floating Rate to be determined in accordance with a Screen Rate Determination on an Interest Determination Date, the financial centre as may be specified as such in the relevant Final Terms or, if none is so specified, the financial centre with which the relevant Benchmark is most closely connected (which, in the case of EURIBOR or EONIA, shall be the Euro-zone and in the case of LIBOR, shall be London) or, if none is so connected, Paris.

  • Sustainability Structuring Agent means X.X. Xxxxxx Securities LLC, in its capacity as sustainability structuring agent hereunder.

  • Citigroup means Citigroup Global Markets Inc.

  • mixed financial holding company means a mixed financial holding company as defined in point (21) of Article 4(1) of Regulation (EU) No 575/2013;

  • Credit Risk Manager Fee The fee payable to the Credit Risk Manager on each Distribution Date for its services as Credit Risk Manager, in an amount equal to one-twelfth of the Credit Risk Manager Fee Rate multiplied by the Stated Principal Balance of the Mortgage Loans immediately prior to such Distribution Date. Credit Risk Manager Fee Rate: 0.0165% per annum.

  • Venture capital fund means a private fund that meets the definition of a venture capital fund in SEC Rule 203(l)-1, 17 C.F.R. § 275.203(l)-1.