Barclays 2010 Annual Report Download - page 286

Glossary of terms
continued
‘Subordinated liabilities’ Liabilities which, in the event of insolvency or
liquidation of the issuer, are subordinated to the claims of depositors and
other creditors of the issuer.
‘Sub-Prime’ Defined as loans to borrowers typically having weakened
credit histories that include payment delinquencies and potentially more
severe problems such as court judgements and bankruptcies. They may
also display reduced repayment capacity as measured by credit scores,
high debt-to-income ratios, or other criteria indicating heightened risk of
default. See Risk Management section – Credit Market Exposures.
‘Tax paid’ All amounts paid to taxation authorities during the year in
respect of taxes borne and collected by the Group. This includes corporate
income tax paid, taxes paid on behalf of employees, irrecoverable VAT and
other taxes.
‘Tier 1 capital’ A measure of a bank’s financial strength defined by the FSA.
It captures Core Tier 1 capital plus other Tier 1 securities in issue, but is
subject to a deduction in respect of material holdings in financial
companies.
‘Tier 1 capital ratio’ The ratio expresses Tier 1 capital as a percentage of
risk weighted assets.
‘Tier 2 capital’ A capital measure defined by the FSA. Broadly, it includes
qualifying subordinated debt and other Tier 2 securities in issue, eligible
collective impairment allowances, unrealised available for sale equity gains
and revaluation reserves. It is subject to deductions relating to the excess
of expected loss over regulatory impairment allowance, securitisation
positions and material holdings in financial companies.
‘Top-line income’ Income before own credit gains/losses and credit market
write downs.
‘Total shareholder return (TSR)’ Defined as the value created for
shareholders through share price appreciation, plus reinvested
dividend payments.
‘UK & Ireland’ See Barclays Corporate.
‘US Credit Card Act’ Credit Card Accountability Responsibility and
Disclosure Act of 2009 (CARD Act). Legislation signed into US law on
22nd ay 2009 to provide changes to credit card industry practices in the
US including significantly restricting credit card issuers’ ability to change
interest rates and assess fees to reflect individual consumer risk, change
the way payments are applied and requiring changes to consumer credit
card disclosures. The majority of the provisions became effective in
February 2010.
‘Value at Risk (VaR)’ An estimate of the potential loss which might arise
from market movements under normal market conditions, if the current
positions were to be held unchanged for one business day, measured to
a confidence level. (Also see DVaR).
‘Whole loans’ A mortgage loan sold in its entirety when the buyer assumes
the entire loan along with its rights and responsibilities. A whole loan is
differentiated from investments in which the buyer becomes part owner
of a pool of mortgages. See Risk Management section – Credit Market
Exposures.
‘Wholesale Loans’ Lending to larger businesses, financial institutions and
sovereign entities.
‘Write down’ After an advance has been identified as impaired and is
subject to an impairment allowance, the stage may be reached whereby
it is concluded that there is no realistic prospect of further recovery.
Write downs will occur when, and to the extent that, the whole or part
of a debt is considered irrecoverable.
284 Barclays PLC Annual Report 2010 www.barclays.com/annualreport10