| Term | Definition |
| Balloon payment | Interest paid regularly together with only small repayments of principal so that the bulk of the loan is payable upon maturity. |
| Bullet payment | Principal and interest paid at maturity. |
| Collateral | Whose value can be considered whilst computing the recoverable amount for workout cases or foreclosed cases, on account of meeting the stipulated conditions laid out in these rules, as would be applicable based on the nature of the collateral. |
| Collateral enforcement | The exercise of rights and remedies with respect to collateral that is pledged against a loan. |
| Conditional loan forgiveness | A bank forfeiting the right to legally recover part or the whole of the amount of an outstanding loan upon the borrower's performance of certain conditions. |
| Cooperative borrower | A borrower which is actively working with a bank to resolve their problem loan. |
| Cure rate | The percentage of loans that previously presented arrears and,post restructuring, present no arrears. |
| Covenant | A borrower's commitment that certain activities will or will not be carried out. |
| EBITDA (earnings before interest, taxes, depreciation and amortization) | Valuation metric for comparing the income of companies with different capital structures. |
| Early warning signals | Quantitative or qualitative indicators, based on liquidity, profitability, market, collateral and macroeconomic metrics. |
| Failed restructuring | Any restructuring case where the borrower failed to repay the revised contractual cash flows as agreed upon with the bank and has transitioned into default. |
| Key performance indicators | Indicators through which bank management or supervisor can assess the institution's performance. |
| Loan to value ratio | Financial ratio expressing the value of the loan compared to the appraised value of the collateral securing the loan. |
| Problem Loans | Loans that display well-defined weaknesses or signs of potential problems. Problem loans shall be classified by the banks in accordance with accounting standards, and consistent with relevant regulations, as one or more of: |
| a. | non-performing; |
| b. | subject to restructuring (including forbearance) and/or rescheduling; |
| c. | IFRS 9 Stages 2; and exhibiting signs of significant credit deterioration or Stage 3; |
| d. | under watch-list, early warning or enhanced monitoring measures; or |
| e. | where concerns exist over the future stability of the borrower or on its ability to meet its financial obligations as they fall due |
| Restructuring | An agreement between the bank and the borrower to modify the terms of loan contract so as to enable eventual repayment. |
| Restructuring plan | A document containing the measures to be taken in order to restore borrower's viability. |
| Risk management system | A centralized system that allows a bank to holistically monitor bank's risks, including credit risk. |
| Unsuccessful restructuring | The cases where the bank and the borrower are not able to reach any restructuring agreement. |
| Viability assessment | An assessment of borrower's ability to generate adequate cash flow in order to service outstanding loans. |
| Viable borrower | Wherein the loss of any concessions as a result of restructuring, is considered to be lower than the loss borne due to foreclosure. |
| Watch list | Loans that have displayed characteristics of a recent increase in credit risk which are subject to enhanced monitoringand review by a bank. |
| Workout Unit | A bank's operational unit in charge of handling problematic loans. |
