The Hindu Editorial (Capital buffers) – May 31, 2019

Non-banking financial companies, already reeling under a painful liquidity crisis,… For further reading, visit “The Hindu”. Below is today’s word list-1 for The Hindu Editorial (Capital buffers) – May 31, 2019.

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Today’s word list-1 for The Hindu Editorial (Capital buffers) – May 31, 2019:

capital buffer (noun) – accumulating a buffer of capital in good times which may be used to maintain flow of credit to the real sector in difficult times.
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.
timely (adjective) – opportune, appropriate/suitable, well timed, at the right time.
reel under (phrase) – to suffer (due to a burden).
liquidity crunch/crisis (noun) – an acute shortage (or “drying up”) of liquidity. liquidity means liquid assets; cash; (liquid asset is an asset which can be easily sold/converted into cash without losing its value).
up against (phrase) – confronted with, face up, tackle/deal with.
comply with (verb) – abide by, adhere to, conform to.
liquidity coverage ratio (LCR) – it refers to the proportion of highly liquid assets held by financial institutions, to ensure their ongoing ability to meet short-term obligations.
outflow (noun) – money/assets flowing out of (or leaving) a particular country’s economy/ an organisation/company.
park (verb) – deposit, reserve, put aside.
obligation (noun) – a mandatory agreement committing a person to a payment.
optimistic (noun) – positive, confident, hopeful.
mismatch (noun) – discrepancy, inconsistency, contradiction
liabilities (noun) – financial obligation, debt, indebtedness.
set in (phrasal verb) – begin, start, arrive (of something unpleasant).
rely on (phrasal verb) – depend on; resort to, have recourse to.
roll over (phrasal verb) – contrive, manage, extend (a financial obligation/arrangement).
in place (phrase) – established, ready, set up.
compel (verb) – drive, force, require.
shrink (verb) – lessen, reduce, decrease.
step in (phrasal verb) – intercede, get involved, intervene.
last resort (phrase) – a final course of action when all else has failed.
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.
ward off (phrasal verb) – prevent, avert, oppose/resist.
systemic (adjective) – constructional, organizational.