In general, terms in this Standard have the meanings defined in other Regulations and Standards issued by the Central Bank. In addition, the following terms have the meanings defined in this Standard.

1. a.Credit conversion factors (CCF): factors used to convert off-balance-sheet items into credit exposure equivalents. Counterparty risk weightings for OTC derivative transactions will not be subject to any specific ceiling.
2. b.Credit risk mitigation (CRM): technique used by a credit institution to reduce the credit risk associated with an exposure it holds.
3. c.Non-Commercial PSEs: Administrative bodies accountable to UAE Federal Government and Emirates Governments or to Local Authorities and other non-commercial undertakings owned by the UAE Federal Government and Emirates Governments or Local Authorities.
4. d.Delivery versus payment (DvP): a securities delivery arrangement in which there is simultaneous exchanges of securities for cash.
5. e.LTV Ratio: The LTV ratio is the amount of the loan divided by the value of the property. The value of the property must be maintained at the value measured at origination unless the Central Bank requires banks to revise the property value downward. The value must be adjusted if an extraordinary, idiosyncratic event occurs resulting in a permanent reduction of the property value. Modifications made to the property that unequivocally increase its value could also be considered in the LTV.
6. f.Multilateral Development Bank (MDB): an international financial institution chartered by two or more countries for the purpose of encouraging economic development.
7. g.Over-the-counter (OTC) derivatives: contracts that are traded (and privately negotiated) directly between two parties, without going through an exchange or other intermediary.
8. h.Payment versus payment (PvP): a mechanism in a foreign exchange settlement system to ensure that a final transfer of one currency occurs only if a final transfer of the other currency or currencies also takes place.
9. i.Specific provisions: the specific provision requirements as set out in the Regulation for Classification of Loans and their Provisions (Circular 28/2010) and the Clarification and Guidelines Manual for Circular No 28/2010.
10. j.Undertakings for collective investments in transferable securities (UCITS): a regulatory framework of the European Commission that creates a harmonized regime throughout Europe for the management and sale of mutual funds. UCITS funds can be registered in Europe and sold to investors worldwide using unified regulatory and investor protection requirements.