Glossary

Key terms and abbreviations

· A ·

ACH - Automated Clearing House

ACR - Annual Competition Report

ACS - annual cyclical scenario

Agents - our national network of twelve agencies, spread across the whole of the UK. The Agents meet with around 700 businesses across the UK to discuss business conditions in their region and publish a regular summary of business conditions.

Agents' summary of business conditions - our regular summary of reports compiled by our twelve regional Agents following discussions with at least 700 businesses across the UK every reporting period.

ALCo - Assets and Liabilities Advisory Committee

AP - Authorised Participant

APF - Asset Purchase Facility

AREF - Association of Real Estate Funds

ARF - Authorities' Response Framework

ARRC - Alternative Reference Rate Committee

Asset purchases - when a central bank like the Bank of England creates new money electronically to make large purchases of assets - also known as quantitative easing.

ARCo - Audit Risk Committee - one of the Court of Directors sub-committees

AT1 - additional Tier 1

AWE - average weekly earnings

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· B ·

Bank rate the rate of interest we pay to commercial banks for the reserves they hold in their Bank of England accounts. Bank rate generally influences the interest rate commercial banks offer and charge their customers - see The interest rate (Bank Rate).

Banknote Character Advisory Committee - this committee selects the field that we want to represent a character on a new banknote and we then ask the public to nominate people from that chosen field - also see Choosing banknote characters.

Basel III - An internationally agreed set of measures developed by the Basel Committee on Banking Supervision in response to the financial crisis of 2007-09. The measures aim to strengthen the regulation, supervision and risk management of banks. In the UK Basel II is implemented through the Capital Requirements Directive.

BCBS - Basel Committee on Banking Supervision

BCC British Chambers of Commerce

BCR - Basic Capital Requirements

BEAPFF Bank of England Asset Purchase Facility Fund Limited - a subsidiary company of the Bank of England, which purchases financial assets such as gilts and corporate bonds to boost economic activity.

BES - biennial exploratory scenario

BHPS - British Household Panel Survey

BIS Bank for International Settlements

BLS - Bank Liabilities Survey - a quarterly survey of banks and building societies, which helps us understand how their lending liabilities and capital drives credit and monetary conditions.

BoAML - Bank of America Merrill Lynch

BoJ - Bank of Japan

BRC - British Retail Consortium

BRC - Business Risk Committee

BRRD - Bank Recovery and Resolution Directive

BTL - buy-to-let

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· C ·

 

CAPE - cyclically adjusted price/earning ratio

CBEST - UK Government National Cyber Security Programme - provides direction on how to conduct a safe yet realistic simulated attack on the people, processes and technology that comprise a firm's cyber security controls.

CBI Confederation of British Industry

CBPS Corporate Bond Purchase Scheme

CCAR - Comprehensive Capital Analysis Review

CCBS - Centre for Central Banking Studies - runs an extensive programme of events for central bankers and financial regulators from around the world.

CCLB - countercyclical leverage buffer

CCP - central counterparty

CCR - Credit Conditions Review - a bi-annual assessment of the latest developments in bank funding and household and corporate credit conditions - last published in April 2018. 

CCS - Credit Conditions Survey - a quarterly survey of banks and building societies is aimed at improving our understanding of trends and developments in credit conditions.

CCyB countercyclical capital buffer

CDE - Critical data elements

CDS - credit default swap

CEIC - CEIC Data Company Ltd

CEO - chief executive officer

CET1 - common equity Tier 1

CFO - chief financial officer

CFRF - Climate Financial Risk Forum

CFTC - Commodity Futures Trading Commission

CGFS - Committee on the Global Financial System

The Chancellor - The Chancellor leads the Treasury which is the government department for economic and financial matters. Their work includes generating income (through tax and borrowing) and controlling government spending.

CHAPS Clearing House Automated Payment System - a payment system we operate which allows payments made between UK accounts to arrive the same day they are made.

Chief Cashier - responsible for making sure that our banknotes have the latest anti-counterfeiting technology and make sure there are enough banknotes in circulation. You can find the Chief Cashier's signature on every one of our banknotes - see the Chief Cashiers page.

Chief Operating Officer (COO) - the COO has responsibility for the day-to-day operations of the institution, including Human Resources, Finance, Property, IT and Security.

CIPD - Chartered Institute of Personnel and Development

CIPS - Chartered Institute of Purchasing and Supply

CIS - collective insurance schemes

CLO - collateralised loan obligation

CLS - Continuous Linked Settlement

CMA - Competition and Markets Authority

CMA - Chicago Mercantile Exchange

CMBS - commercial mortgage-backed security

CMG - crisis management group

Collateral - an asset that a borrower offers a lender to secure a loan. If a borrower fails to repay a loan, the lender can keep or sell the collateral.

CM - collateral management

CML - Council of Mortgage Lenders

CoCo - contingent convertible capital instrument

COICOP - classification of individual consumption by purpose

COREP - Common Reporting

Court of Directors - sets our strategy and budget and takes key decisions on resourcing and appointments - see the Court of Directors page.

CPMI - Committee on Payments and Market Infrastructures

CP - Consultation Paper - a publication which outlines and invites comments on details of a new policy we are looking to implement.

CPI - consumer prices index - see the inflation page.

CPI inflation - inflation measured by the consumer prices index.

CPIH - an index of consumer prices that includes a measure of owner-occupiers' housing costs.

CRD IV Capital Requirements Directive IV - an EU legislation that sets prudential rules for banks, building societies and investment firms.

CRE - commercial real estate

CRR - Capital Requirements Regulation

CSD - Central securities depositories

CSDR - Central Securities Depositories Regulation

CSPP - corporate sector purchase programme

CST - concurrent stress test

CTRF - Contingent Term Repo Facility

CVA - credit valuation adjustment

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· D ·

DAT - Derivatives Assessment Team

DB - defined benefit

DC - defined contribution

DECL Taskforce - The UK Taskforce on Disclosures about Expected Credit Losses

Deputy Governor - we currently have four Deputy Governors each assigned functional responsibility for the following aspect of the our work: Monetary Policy, Financial Stability, Markets & Banking and Prudential Regulation.

DMO - Debt Management Office

DGI - domestically generated inflation

DLT - Distributed ledger technology

DP - Discussion Paper - a paper which sets out our views and analysis in relation to a particular topic.

DMP - Decision Maker Panel

D-SIB - domestic systemically important bank

DSR - debt-servicing ratio

DTA - deferred tax asset

DTI - debt to income

DTCC - Depository Trust and Clearing Corporation

DvP - delivery versus payment

DWF - Discount Window Facility

DWP - Department for Work and Pensions

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· E ·

EBA - European Banking Authority

EBITDA - earnings before interest, taxes, depreciation and amortisation

EC - European Commission

ECB - European Central Bank

ECC - Economic Consultative Committee

ECL - expected credit loss

ECTR - Extended Collateral Term Repo

ED - Executive Director

EDTF - Enhanced Disclosure Task Force

EEA - European Economic Area

EEA - Exchange Equalisation Account

EFSF - European Financial Stability Facility

EIOPA - European Insurance and Occupational Pensions Authority

ELA - Emergency Liquidity Assistance

EME - emerging market economy

EMIR - European Market Infrastructure Regulation

ERI - exchange rate index

ERM - equity releases mortgage

ESA - European Supervisory Authorities

ESCB - European System of Central Banks

ESFS - European System of Financial Supervision

ESMA - European Securities and Markets Authority

ESRB - European Systemic Risk Board

ET - Executive Team

ETF - exchange-traded fund

EU - European Union

EUI - Euroclear UK & Ireland Limited

Euribor - euro interbank offered rate

EVIA - European Venues & Intermediaries Association

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· F ·

FCA - Financial Conduct Authority - the regulator of the conduct of financial services firms and financial markets in the UK.

FDI - foreign direct investment

FDSF - Firm Data Submission Framework

Federal Reserve - The central bank of the United States (also known as 'the Fed').

FEMR - Fair and Effective Markets Review

FICC - fixed income, currency and commodities

Financial sector continuity - the three UK financial authorities - the Bank of England, HM Treasury and the Financial Conduct Authority - work together to make sure the UK financial sector runs smoothly, efficiently and effectively.

FINREP - financial reporting

FinTech - financial technology

FISIM - financial intermediation services indirectly measured

FLS - Funding for Lending Scheme - a scheme launched by the Bank of England and the Treasury in 2012, to encourage bank and building societies to lend more to households and businesses.

FMI - Financial market infrastructure - the network processes and systems that allow financial transactions to take place.

fmi CBCM - FMI Cross-Border Crisis Management

FMLC - Financial Markets Law Committee

FOIA - Freedom of Information Act

FOMC - Federal Open Market Committee

FOS - Financial Ombudsman Service

FPC Financial Policy Committee - our committee that identifies, monitors and takes action to remove or reduce risks in the financial system - to protect and enhance its resilience.

FPS - Faster Payments Service

FRC - Financial Reporting Council

FRN - floating-rate note

FSA - Financial Services Authority

FSAC - Financial System Advisory Committee

FSAP - Financial Sector Assessment Program

FSB - Financial Stability Board - an international body that monitors and makes recommendations about the global financial system.

FSCS - Financial Services Compensation Scheme

FSMA - Financial Services and Markets Act 2000 - an Act of the UK Parliament that created the Financial Services Authority (FSA) as a regulator for insurance, investment business and banking, and the Financial Ombudsman Service to resolve disputes as a free alternative to the courts. In 2013 the FSA was replaced by the Prudential Regulation Authority (part of the Bank of England) and the Financial Conduct Authority.

FSR - Financial Stability Report - our bi-annual report that sets out our Financial Policy Committee's view on the stability of the UK financial system and what it is doing to remove or reduce any risks to it.

FSSR - Financial Stability Strategy and Risk

FTSE - Financial Times Stock Exchange

FX - foreign exchange

FXJSC - The London Foreign Exchange Joint Standing Committee - a forum for discussion concerning the wholesale foreign exchange market.

FY - financial year

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· G ·

G7 group of seven major economies: Canada, France, Germany, Italy, Japan, the United Kingdom and the United States.

G10 - Belgium, Canada, France, Germany, Italy, Japan, the Netherlands, Sweden, Switzerland, the United Kingdom and the United States

G20 - group of twenty finance ministers and central bank governors

GfK - Gesellschaft für Konsumforschung - Germany's largest market research institute.

GLAC - gone-concern loss-absorbing capacity

GDP - gross domestic product - GDP is a measure of the size and health of a country’s economy over a period of time (usually one quarter or one year). It is also used to compare the size of different economies at a different point in time. 

Governor - in addition to their duties as Governor, they also chair the Monetary Policy Committee, Financial Policy Committee and the Board of the Prudential Regulation Committee.

G-SIB - Global systemically important bank

G-SIFI - Globally Systemically Important Financial Institution

G-SII - Global systemically important insurer 

GUUG - Group on UTI and UPI Governance

GVA - gross value added

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· H ·

HEW - housing equity withdrawal

HLA - higher loss absorbency

HMRC - Her Majesty's Revenue and Customs

HMT - Her Majesty's Treasury

Hibor - Hong Kong interbank offered rate

HICP - harmonised index of consumer prices

HPI - house price index

HQLA - high-quality liquid asset

HVPS - high-value payment system

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· I ·

IADB - Interactive Database - now known as the The Database.

IAIS - International Association of Insurance Supervisors

IAS 39 - International Accounting Standards 39

IBES - Institutional Brokers' Estimate System

ICAAP - Internal Capital Adequacy Assessment Process

ICB - Independent Commission on Banking

ICE - Intercontinental Exchange

ICE/BofAML - Intercontinental Exchange/Bank of America Merrill Lynch

ICMA - International Capital Market Association

ICPFs - insurance companies and pension funds

ICR - interest coverage ratio

ICS - Insurance Capital Standard

ICT - information and communications technology

ID - International Directorate

IEA - International Energy Agency

IEO - Independent Evaluation Office - the IEO assesses our performance. It was established in 2014 to increase public trust in the Bank and improve its openness, learning culture and public accountability.

IFRS - International Financial Reporting Standard

IFRS 9 - International Financial Reporting Standard 9

IFS - Institute for Fiscal Studies

IIF - Institute of International Finance

ILS - Insurance Linked Securities

IM - Initial Margin

IMF - International Monetary Fund

IMSG - Implementation Monitoring Standing Group

Inflation Attitudes Survey - a quarterly survey, conducted by TNS on our behalf, that accesses public attitudes to inflation, opinions about us and awareness of our work.

Interest rate - the interest rate is usually shown as a percentage of the amount you borrow or save. This is paid as interest over the course of a year. So if you put £100 into a savings account that offers a 1% interest rate, then you'd have £101 a year later. If the interest rate was 2%, you'd get £102, and so on - see The interest rate page.

IOSCO - International Organization of Securities Commissions

IPO - initial public offering

IR - Inflation Report - our quarterly report that sets out the economic analysis and inflation projections that the Monetary Policy Committee uses to make its interest rate decisions.

IRB - internal ratings based

ISA - individual savings account

ISDA - International Swaps and Derivatives Association

ISIN - International Securities Identification Number

ISM - Institute for Supply Management

ISPV - Insurance special purpose vehicle

IT - Information Technology

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· K ·

KRX - Korea Exchange

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· L ·

LBG - Lloyds Banking Group

LCD - Leveraged Commentary & Data

LCH - London Clearing House

LCR - liquidity coverage ratio

LDI - liability driven investment

LFS - Labour Force Survey

Libor - London interbank offered rate

Liquidity - how quickly assets (such as cash or cash equivalents) can be bought or sold.

LME - London Metal Exchange

LTI - loan to income

LTV - loan to value

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· M ·

M&A - mergers and acquisitions

MA - monetary analysis

MBS - mortgage-backed security

MCOB - Mortgages and Home Finance: Conduct of Business sourcebook

MFI - monetary financial institution

MI - Market Intelligence

MIDAS - mixed-data sampling

MiFID - Markets in Financial Instruments Directive

MiFIR - Markets in Financial Instruments Regulation

MIP - mortgage interest payment

MLAR - Mortgage Lenders and Administrators Return - a quarterly statistical release aggregated from data on mortgage lending activities provided by around 340 regulated mortgage lenders and administrators.

MMC - Money Markets Committee

MMF - money market fund

MMLC - Money Markets Liaison Committee

MMR - Mortgage Market Review

MoU - Memorandum of Understanding

Monetary policy - the process by which we set the interest rate - and sometimes carries out other measures - in order to reach a target rate of inflation.

MPC - Monetary Policy Committee - the MPC make decisions about how we try to reach the inflation target set by HM Treasury - also see the monetary policy page.

MPC minutes - Minutes of the Monetary Policy Committee meeting - these meetings usually take place 8 times a year.

MPC Summary - Monetary Policy Committee Summary - published with the MPC minutes.

MPE - multiple point of entry

MREL - minimum requirement for own funds and eligible liabilities

MSCI - Morgan Stanley Capital International Inc.

MSROD - Markets Strategy and Risk Operations Division

MTIC - missing trader intra-community

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· N ·

NAV - net asset value

NBFI - non-bank financial institution

NBPSP - non-bank payment services provider

NBSU - New Bank Start-up Unit

NCS - Note Circulation Scheme - the NCS governs the distribution, processing and storage of our banknotes.

NCSC - National Cyber Security Centre

NedCo - Non-Executive Directors' Committee

NGFS - Network for Greening the Financial System

NHS - National Health Service

NIIP - net international investment position

NIM - net interest margin

NIPs - Non-Investment Products

NISU - New Insurer Start-up Unit

NLW - National Living Wage

Nominations Committee - one of the Court of Directors sub-committees.

NPA - New Payments Architecture

NPISH - non-profit institutions serving households

NPL - non-performing loan

NPSO - New Payment System Operator

NS&I - National Savings and Investments

NSFR - Net Stable Funding Ratio

NSSC - National Security Strategy Committee

NtA - Nationalising the Acquis

NTNI - non-traditional, non-insurance

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· O ·

OBR - Office for Budget Responsibility

OCIR - operational continuity in resolution

OCP - Occasional Consultation Paper

OECD - Organisation for Economic Co-operation and Development

OEIF - open-ended investment fund

OFC - other financial corporations

Ofgem - Office of Gas and Electricity Markets

OFI - other financial institution

OIS - overnight indexed swap

OMT - Outright Monetary Transaction

ONS - Office for National Statistics - the ONS collect, analyse and disseminate statistics about the UK's economy, society and population.

OPEC - Organization of the Petroleum Exporting Countries

Operational resilience - the ability of firms and the financial system as a whole to absorb and adapt to shocks, rather than contribute to them - see the financial sector continuity page.

ORC - Operational Risk Committee

OSFs - Operational Standing Facilities

O-SII - other systemically important institution

OTC - Over-the-counter

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· P ·

PBR - Pre-Budget Report

PCP - personal contract purchase

PFE - potential future exposure

PFMI - Principles for Financial Market Infrastructures

PMI - purchasing managers' index

PNFC - private non-financial corporation

Polymer - a durable yet thin and flexible plastic film made from polypropylene. The latest £5 and £10 notes are made from polymer - see the polymer banknotes page.

PPF - Pension Protection Fund

PPI - payment protection insurance

PPI - producer price index

PPP - purchasing power parity

PRA - Prudential Regulation Authority - the PRA is responsible for the prudential regulation and supervision of 1,500 banks, building societies, credit unions, insurers and major investment firms.

PRC - Prudential Regulation Committee - the PRC has responsibility within the Bank for exercising the Banks functions as the Prudential Regulation Authority as set out in the Bank of England Act 1998 and the Financial Services and Markets Act 2000.

PS - Policy Statement

PSD - Product Sales Data

PSG - Policy Standing Group

PSR - Payment Systems Regulator

PTF - principal trading firm

PwC - PricewaterhouseCoopers

P2P - peer to peer

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· Q ·

QB - Quarterly Bulletin - explores topics on monetary and financial stability and includes regular commentary on market developments and UK monetary policy operations.

QCCP - qualifying central counterparty

QE - quantitative easing - when a central bank like the Bank of England creates new money electronically to make large purchases of assets - also known as asset purchases.

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· R ·

R&D - research and development

RAF - Resolvability Assessment Framework

RAP - resolvability assessment process

RBS - Royal Bank of Scotland

RCF - revolving credit facility

REC - Recruitment and Employment Confederation

RegTech - Regulatory Technology

REIT - real estate investment trust

Remuneration Committee - one of the Court of Directors sub-committees

Resolution - the process by which we can step in to make sure that a bank that is failing does so in an orderly way - see the Resolution page.

RFB - ring-fenced body - these are the retail banking services that will be separated from the operations of large banks, so that consumers can continue to access them even if the banks other operations are affected by a financial shock.

RFI - relevant financial institutions

RFR - Risk-Free Reference Rates

RICS - Royal Institution of Chartered Surveyors

RMD - Risk Management Division

RoA - return on assets

RoE - return on equity

ROU - Risk Oversight Committee

Royal Mint - based in Llantrisant, South Wales, the Royal Mint is responsible to make and distribute United Kingdom coins.

RPI - retail price index

RTSO - recognised payment system operators

RTGS - real-time gross settlement - an infrastructure operated by us that holds accounts for banks, building societies and other institutions. The balances in these accounts can be used to move money in real time between these account holders.

RTP - Reserve Tranche Position

RWA - risk-weighted asset

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· S ·

S&P - Standard and Poor's

SAR - Special Administration Regime

SCO - secondary competition objective

SCP - Single Collateral Pool

SCR - solvency capital requirement

Sealing Committee - one of the Court of Directors sub-committees.

SEC - Securities and Exchange Commission

SFT - securities financing transaction

SFTR - Securities Financing Transactions Regime

SI - Statutory Instrument

SIC - Standard Industrial Classification

SIFI - systemically important financial institution

SIMMTM - Standard IM Model

SIMRsenior insurance managers regime

SIV - structured investment vehicle

SLC - Securities Lending Committee

SLRC - Securities Lending and Repo Committee

SLS - Special Liquidity Scheme

SM&CR - Senior Managers and Certification Regime

SME - small and medium-sized enterprise

SMF - Sterling Monetary Framework - our operations in the sterling money markets.

SML - Survey of Mortgage Lenders

SMMT - Society of Motor Manufacturers and Traders

SMR - Senior Managers Regime

SOFR - secured overnight financing rate

Solvency II - sets out regulatory requirements for insurance firms and groups, covering financial resources, governance and accountability, risk assessment and management, supervision, reporting and public disclosure.

SONIA Sterling Overnight Index Average - a widely used interest rate benchmark and the reference rate for sterling Overnight Indexed Swaps (OIS).

SoP - Statement of Policy

SPE - single point of entry

SPV - special purpose vehicle

SRB - systemic risk buffer

SREP - Supervisory Review and Evaluation Process

SRS - Supervisory Risk Specialists

SS - Supervisory Statement - the PRA will issue supervisory statements when it wishes to set out its expectations of firms without implementing these into the Rulebook.

SSB - standard setting body

SSS - Securities Settlement Systems

SST - supervisory stress-testing

STC - simple, transparent and comparable

STDF - stress testing data framework

Stress testing - banking stress tests examine the potential impact of a hypothetical adverse scenario on the individual institutions that make up the banking system, and the system as a whole.

STSD - Stress Testing Strategy Division

SVT - standard variable tariff

SWIFT - Society for Worldwide Interbank Financial Telecommunication

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· T ·

T2 - Tier 2

T-bills - Treasury bills

TFP - total factor productivity

TFS - Term Funding Scheme - provides funding to banks and building societies at rates close to Bank Rate.

TLAC - total loss-absorbing capacity

TLC - total labour cost

TLTRO - targeted longer-term refinancing operation

TMTP - transitional measures on technical provisions

TNS - Taylor Nelson Sofres - a market research and market information group.

TPR - Temporary permissions regime

TPR - The Pensions Regulator

TR - trade repository

TSC - Treasury Select Committee

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· U ·

UCITS - undertakings for collective investment in transferable securities

UKDT - UK Deposit Takers Supervision

ULC - unit labour cost

UPI - unique product identifier

UTI - unique transaction identifier

UWC - unit wage cost

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· V ·

VA - volatility adjustment

VaR - Value-at-Risk

VAT - Value Added Tax

VEAP - vulnerable euro-area periphery

VED - Vehicle Excise Duty

VIX - CBOE Volatility Index

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· W ·

WEO - IMF World Economic Outlook

WMBA - Wholesale Market Brokers' Association

WTO - World Trade Organisation

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· X ·

XBRL - eXtensive Business Reporting Language

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This page was last updated 16 August 2019
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