Capital impairment

A situation in which a bank has insufficient capital at risk to cover the risk it is undertaking either from a risk management or a regulatory perspective.

Capital Gain

The gain on the disposal of an asset calculated by deducting the cost of the asset from the proceeds received on its disposal

Capital Employed

Either the sum of the shareholders equity in a company and its long-term debts or the capital assets of a company plus its net current assets

Capital asset pricing model(CAMP)

A statistical model to explain the expected or avarage return on an investement.it assumes that this return will be composed of the risk free rate of return and a risk premium

Capital Adequacy

The ability of a bank to meet the needs of its depositors and other creditors

Cap and collar morgage

A mortgage in which the variable interest rate paid by the borrower cannot rise above or fall below specified levels, such a morgage may be granted for the first few years of a loan

Call provision

A clause in the agreement between the issuer and the holders of bond that entitles the issuer to redeem the bond before maturity

Call money

Money put into the money market that can be called at short notice

A grace period

A period in which the borrower is unable to call the bond

Callable Bonds

Fixed rate bonds usually convertable in which the issuer has the right, but not the obligation to redeem(call) the bond during the life of the bond