This glossary contains terms and abbreviations in the field of regulatory reporting. It should help you to get a quick and general overview of the respective terms.
Not all transactions are listed in the balance sheets of a bank. Examples for such off-balance sheet transactions are guarantees or open loan commitments. These are liabilities, but whether and how much the bank is obliged to provide is uncertain.
On-balance sheet transactions refer to all classical transactions, which have to be shown in the balance sheet. Examples are loans, participations or shares.
Operational Risk (OpRisk) denotes risks, which could occur beyond the usual entrepreneurial risks. There are three measurement methods for the calculation of the equity capital requirement for operational risk provided by the German Solvency Regulation (SolvV): the STA (standardized approach), the BIA (basic indicator approach) and the AMA (advanced measurement approach).
In March 2016 the Basel Committee on Banking Supervision published a new approach for calculating the Operational Risk, the Standardized Measurement Approach (SMA).
Own Funds denotes an IT-Standard for Own Funds and solvency reporting. The Own Funds serve to cover realized risks in the lending business and safeguard the claim of the creditors, also in the case of an adverse development. The better the claims are safeguarded, the higher the solvency is. The basis of assessment is book/market values after valuation adjustment.