Banking Terms Based on the word / phrase from letter E (Part II / IV)

Banking Terms Based on the word / phrase from letter E (Part II / IV) :
Economic Capital (Risk Capital).

Is Capital, which placed as a risky asset to cover potential losses in a state of extreme market. There are two kinds of possible losses in risk management, which is 'expected loss' and 'unexpected loss'. Expected loss is usually provided cover in the form of 'provision' (can be in the form of PPAP) and unexpected loss it is also necessary to provide cover in the form of economic capital. The original idea was to estimate the capital required for a stand-alone business (stand alone) for a particular project.
Economic Capital is also known as Economic Risk Capital or Risk Capital.
Risk in this regard is the composite risk of Credit Risk, Market Risk and Operational Risk which is a manifestation of an adequate amount of capital (sufficient) to protect banks from possible losses on the portfolio of the bank until at a certain level of possible losses.
Companies (banks) use the economic capital for the purpose of:
 To hold a capital level that is safe, keep out of the disaster and meet the requirements concerning the provision of minimum capital (capital requirements)
 To hold that the risks have been managed properly and to assess whether the cost of insurance premiums and costs incurred for management control (management control) is really effective according to its purpose.
 To believe that companies (banks) do not make use of excess capital (over-capitalized)
 To hold that capital is used efficiently and give the best results (best return), evaluate and menganalysis strategies and support decision-making process. (Source: From various sources).

Effect.

Are securities, which debt instruments,

Banking Terms Based on the word / phrase from letter E (Part I / IV)

Banking Terms Based on the word / phrase from letter E (Part I / IV) :

Early termination.

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