The Hindu Editorial (Banking on bailouts) – Mar 07, 2020

Just one day after it placed the financially troubled Yes Bank under a moratorium, the Reserve Bank of India announced a draft… For further reading, visit “The Hindu”. Below is today’s word list-1 for The Hindu Editorial (Banking on bailouts) – Mar 07, 2020.

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Today’s word list-1 for The Hindu Editorial (Banking on bailouts) – Mar 07, 2020

bank on (phrasal verb) – rely on, depend on; anticipate, expect.
bailout (noun) – an act of providing financial help/support by the outside investors to a bank/institution which faces serious financial difficulty.
commendable (adjective) – admirable, praiseworthy, laudable, creditable.
moratorium (noun) – a temporary suspension of an activity; embargo, ban, prohibition.
entail (verb) – necessitate, require; cause, result in.
alacrity (noun) – readiness, eagerness, willingness.
tumble (verb) – fall, slide, decline, plunge.
erode (verb) – (gradually) deteriorate, destroy, spoil.
holdings (noun) – a quantity of shares held in a company by a particular shareholder. An amount of a particular type of investment owned by a person or organization.
drag down (phrasal verb) – bring to a lower level; decrease, get worse.
contagion (adjective) – the spreading of a bad and dangerous idea.
bank resolution (noun) – it occurs when authorities determine that a failing bank cannot go through normal insolvency proceedings without harming public interest and causing financial instability. To manage the bank’s failure in an orderly manner, authorities use resolution tools that ensure (a) continuity of the bank’s critical functions, (b) maintain financial stability & (c) restore the viability of parts or all of the bank.
pose (verb) – raise, ask, put (a question/matter for consideration).
oversight (noun) – management, administration, supervision.
essay (verb) – attempt, make an effort, try/strive.
mounting (adjective) – increasing, growing, escalating.
sour/bad loans (noun) – non-performing assets (NPAs), stressed assets/loans; an account where principal and/or interest remains overdue for a period of time.
dodgy (adjective) – dubious/suspicious, risky/high-risk, unsafe/unsecure.
reflect (verb) – indicate, show, display, represent.
underlying (adjective) – fundamental, basic, primary.
woes (noun) – trouble, difficulty, problem.
non-banking financial company (NBFC) (noun) – a company incorporated under the Companies Act 2013 or 1956 which is engaged in the business of loans and advances, acquisition of stocks, equities, debt etc issued by the government or any local authority. The main objective of this type of a company is to accept deposits under any scheme or manner.
inability (noun) – lack of ability, incapability, ineffectiveness.
land up (phrasal verb) – end up (to a particular state finally).
insolvency (noun) – a condition in which the financial difficulties of an individual or organisation are such it is unable to pay its debts.
proceedings (noun) – legal actions.
hard hit (phrase) – badly affected.
gross (adjective) – aggregate, total/complete, comprehensive.
scramble (verb) – struggle, hurry/hasten, rush (to do something to achieve a goal/result).
shore up (phrasal verb) – support, assist, prop up (with some fund/finance to stop declining).
balance sheet (noun) – a statement that shows the financial condition of a company at a particular point in time.
in the throes of (phrase) – struggling with, grappling with, in the middle of.
persistent (adjective) – continuous, unrelenting, never-ending.
slowdown (noun) – economic decline, recession, slump/depression.
prospects (noun) – chances, potential, future.
ease (verb) – reduce, lessen, decrease.
prompt corrective action (PCA) (noun) – a mechanism that is forced by the RBI upon Banks that show signs of stress on any of the standard stress parameters. Under the PCA, the RBI’s role is not just advisory in nature, but it can also push for changes in banks that the RBI may consider necessary to reduce the stress on the balance sheet of banks.
framework (noun) – structure, scheme, system, organisation.
tailor-made (adjective) – suitable, fitting, appropriate, relevant.
elude (verb) – evade, avoid, get away from, dodge, slip away from.
address (verb) – tackle, deal with, attend to, try to sort out.
point to (verb) – indicate, suggest, denote.
metric (noun) – a quantifiable measure businesses use to track, monitor and assess the success or failure of various business processes.
breach (verb) – violate, infringe, break.
threshold (noun) – lower limit, starting point, the level (to react to something).
flag (verb) – indicate, identify, point out.
divergence (noun) – difference, dissimilarity/variance; deviation.
guidepost (noun) – guide, indicator.
slip under the radar (phrase) – to go unnoticed, especially for a long period of time.
paucity (noun) – insufficiency, deficiency, shortage.
peer (noun) – equal, match, like.
white knight (noun) – a company or an individual that acquires a target company (in financial difficulties) that is close to being taken over by a hostile takeover bid (black knight). The white knights make a friendly acquisition by generally preserving the current management team, offering better acquisition terms, and maintaining the core business operations.
heave (verb) – breathe, give, sigh, gasp.
a sigh of relief (phrase) – feel happy that something (very) unpleasant has not happened.
far from (phrase) – not, not at all, nowhere near.
out of the woods (phrase) – out of danger/difficulty.
have one’s work/task cut out (phrase) – be dealt with a difficult task.
obviate (verb) – avoid, prevent, eliminate.