Is a process of accelerated Maturity Date USD Repo by Bank Indonesia. Notice of early termination will be done on a bilateral basis to the Bank is concerned by Bank Indonesia. View → USD Repo. (7). Source: Bank Indonesia).
EBIT (Earning Before Interest and Taxes).
The company is profit before
interest payments into account the Bank, as well as tax payments. EBIT figures are very useful for the Bank to analyze the company's ability to generate profits (performance), which is the basis for banks in the provision of facilities and policies to be taken in reschedulling banks and credit restructuring of a customer. If the profit is also included calculations before Depreciation and Amortization, it is called EBITDA, which is Earning Before Interest, Taxes, Depreciation and Amortisation. (5).
(Source: Banking Practice)
ECA (Export Credit Agency).
Is an institution that acts as a parent bank which was formed to support the export efforts. While in Indonesia the function performed by the Bank Export Indonesia is not based on a statute of the ECA. Bank Export Indonesia was established in 1999, based on Presidential Decree relating to changes in the law on Bank Indonesia which no longer gives credit likiduitas including for export so that these functions need to be transferred, and established the Bank Export Indonesia. Conceived intent by BI to provide a foundation for the ECA Act in Indonesia. (9).
(Source: Bank Export Indonesia).
ECAI (External Credit Assessment Institution).
Is an External Independent Agencies that can provide credit ratings on a company, entity, or obligors that its rank can be used as basis by the bank in the calculation of RWA for customer positions in the bank for purposes of determining minimum capital requirement (CAR). Method of calculating the risk weight (risk weight) using a rating of ECAI allowed in standardized Approach. Among the ECAI which has been widely recognized internationally include the Standard and Poors, and Fitch Moddy.
BIS sets eligibility criteria for ECAI as follows:
Objectivity (Objectivity):
Implementation of the credit assessment methodology should be cautious and careful, systematic and can be verified based on past experience. Further assessment should be reviewed (review) and responsive to possible changes in financial condition. Before recognized by the Bank Supervision Authority, an assessment methodology for each market segment should be 'back testing' for at least one year and preferably more than 3 (three) years.
Independence (Independent):
An ECAI should be independent and not a subject of political pressures and economic pressures that could affect the ranking rating. Assessment process should be done as free as possible from the restrictions that can occur in a situation where the composition of the board of commissioners or the shareholders of institutions that do seem to pose a conflict of interest asesmennya (conflict of interest).
International Access / Transparency (International Access / Transparency):
Individual assessment by the ECAI is available for both domestic and foreign institutions with legitimate interests of the country and on the same terms .. General methodology used by the ECAI should be available publications.
Disclosure (Disclosure):
ECAI should disclose the following information:
Assessment methodology including the definition of 'default', 'time horizon', and understanding of each level of the rating, the actual default rates experienced in each assessment category and transition assessments, such as a tendency AA rating to A in a period of time.
Resources (Resources):
ECAI should have sufficient resources to carry out credit assessment with high quality. The resources in question must be possible to relate continuously substasial with senior and operational level in companies that can in-assessments that can provide added value in the credit assessment is done. Assessment in question must be based on a methodology that combines quantitative and qualitative approaches.
Credibility (Credibility):
Within certain limits of credibility obtained from the factors mentioned above.
Belief in an external assessment conducted by the ECAI by independent parties (such as investors, insurers, business partners) is a testament to the credibility assessments made by the ECAI. The credibility of the ECAI is also shown by the existence of internal procedures to secure the misuse of confidential information. In order to obtain recognition, an ECAI does not have to conduct assessments in several countries. (2). (Source: BIS).
E-commerce (Electronic Commerce).
Is the implementation of business communication and transactions over computer networks. E-commerce is the buying and selling of goods and services and the delivery of funds through digital communications. Included in e-commerce purchases and sales networks world wide web and the Internet, electronic funds transfers, smart cards, digital cash and all manner of conducting business via the digital network. (2). (Source: NN).
ABS (Asset Backed Securities).
Are securities (securities), which consists of financial assets in the form of claims arising from commercial securities, like credit card bills, loans with a down payment such as credit (mortgage / mortgage), debt securities guaranteed by the government, and cash flows ( cash flow). In the process, the initial creditor (originator) transferred financial assets to the holders of ABS through an investment manager. See Also "Securitization".
Bank Indonesia in the provision of asset securitization, giving the sense that the ABS are securities issued by the Issuer EBA based on the financial assets transferred by the Originator. Original creditor (originator) is the party that transfers financial assets to the Issuer EBA. Another term for EBA is "Backup Assets Securities" (ABS) (7).. (Source: BKPM; Bank Indonesia).
Continued to Part II
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