Glossary beginning with E

EaR (Earnings at risk)

defines maximum deviation of net business income from expected value with an assumed range of confidence in a specified time horizon


external credit assessment institutions

Equity risk

risk of loss related to changes in prices of equity securities on the public market or securities exchange indices, generated through the maintenance of open positions in instruments that are sensitive to changes in such market parameters

Excessive leverage risk

risk resulting from vulnerability due to financial leverage or conditional leverage that may require unintended corrective actions of business plans, including emergency sale of assets which could result in losses or result in the need for valuation adjustments of other assets

Expected Loss, EL

a statistically assessed value of the mean (expected) credit risk loss that the bank expects to incur on the portfolio within one year