Debt/Equity ratio meaning

In this issue: Economic Crime and Corporate Transparency Act 2023 Trade finance Sustainable finance Debt capital markets Derivatives Structured products and securitisation Claims and remedies Daily and weekly news alerts New and updated content Useful information Economic Crime and Corporate Transparency Act 2023 DBT publish second progress report on Economic Crime and Corporate Transparency Act 2023 implementation The Department for Business and Trade (DBT) has issued its second yearly update on delivering the Economic Crime and Corporate Transparency Act 2023. It notes the making of over 20 statutory instruments and flags new Companies House enforcement, including 82,600 registered office address changes and 419 penalty warning notices. The roadmap runs to the close of 2026, with mandatory identity verification due from autumn 2025 and limited partnership reforms to be finalised by the end of 2026. With enhanced powers, Companies House reports identifying £50m of UK property connected to organised crime. See: LNB News 17/06/2025...

Loan market and developments Moody’s retains a ‘stable’ outlook for Bermuda’s banking sector, reflecting contingent liability risk linked to the island’s sizeable banking system. The agency notes that Bermuda’s very strong institutional framework, very high per capita income and robust external position are fundamental credit strengths that enhance the jurisdiction’s resilience to prospective shocks. The Bermuda Monetary Authority confirms that, as at September 2024, banks’ capital adequacy sits comfortably above Basel III minima, with the sector reporting: a risk asset ratio of 25.6%; a common equity tier 1 capital ratio of 24.2%; a leverage ratio of 7.7%. Looking ahead, no significant changes are anticipated to Bermuda’s banking or contract laws. Basel III regulatory standards have now been fully phased in, including the Liquidity Coverage Ratio, the Capital Conservation Buffer and the Net-Stable Funding Ratio requirements...

Introduction Across Europe, some jurisdictions rely solely on a cash flow assessment to determine insolvency, others use a balance sheet measure, and a number apply both. In addition, certain countries operate a share capital test (see Practice Note: European directors' duties in the zone of insolvency), which obliges directors to act when capital drops beneath a set threshold. Moreover, some countries place burdensome liabilities on directors of companies entering the insolvency zone. Austria Cash flow or balance sheet test: Cash flow (i.e. illiquidity) or balance sheet (over-indebtedness). Duty to file for insolvency: Without undue delay and, in any event, no later than 60 days after the company becomes illiquid/over-indebted. Directors' liabilities: Legal representatives are liable if they breach their duties (including the duty to file), and liable to the company's creditors for violating statutes that protect creditors. Office holders can also face personal liability for the company's debts up to €100,000 each if they fail to open reorganisation proceedings after receiving an auditor's...

This glossary sets out many of the expressions commonly used in the leveraged finance market. Words appearing in the definitions in bold are defined elsewhere in this glossary. For further banking terminology, please refer to the main Banking & Finance Glossary... Acquisition finance glossary—A Acceleration Acceleration is the formal action taken by the agent, on the instructions of the majority lenders, following an event of default, such as making a demand for early repayment of the loan. See Practice Note: Accelerating a loan for more information... Accordion feature/accordion facility An accordion, also called an incremental debt feature, is a mechanism in the facilities agreement that, provided specified conditions are satisfied (for example, pro forma compliance with a leverage test), permits those lenders under the facilities agreement who wish to do so to advance additional debt. The terms for that extra debt are typically captured in an increase notice. This accordion or incremental debt flexibility is different from structural adjustment, which usually requires the majority consent...