Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 2 terms
Provisions made against bad loans, expressed as a share of a lender's loan book.
You want it stable and low. A spike can consume the whole of a bank's operating profit in a single year, which is why bank earnings swing so violently.
Interest income divided by average interest-earning assets — what a lender earns on what it has lent.
Half of the spread, and the half that is easiest to misread. A high yield is not skill; it is the price of the risk the lender agreed to carry, and the credit cost line is where that bill arrives.