Repurchase agreements (REPOS)
Involve the sale of securities for cash at a near value date and the simultaneous repurchase of the securities for value at a later date.
Return on common equity (ROE)
Net income, less preferred share dividends, expressed as a percentage of average common equity.
Reverse repurchase agreements (reverse REPOS)
Involve the purchase of securities for cash at a near value date and the simultaneous sale of the securities for value at a later date.
Financial institutions face a number of different risks that expose them to possible losses. These risks include credit risk, market risk, liquidity risk, insurance risk and operational risk.
Used in the calculation of risk-based capital ratios. The face value of assets is discounted using risk-weighting factors in order to reflect a comparable risk per dollar among all types of assets. The risk inherent in off-balance sheet instruments is also recognized, first by determining a credit equivalent amount, and then by applying appropriate risk-weighting factors.