Glossary beginning with L

LDA (Loss Distribution Approach)

an approach in which historical data on internal and external events are used, as well as the information on the development of operational environment factors for statistical measurement of operational risk

LGD (Loss Given Default)

a loss suffered by the Bank in case of client’s default

Liquidity reserve

the difference between the most liquid assets and expected and potential liabilities that mature in a given period for a given currency

Liquidity risk

the risk of inability to timely discharge of liabilities due to non-availability of liquid means

LMA

the Loan Market Association

LTV

ratio of the credit exposure amount to the value of the real property offered as collateral of that exposure