Minimum funding requirement
Minimum funding requirementA rule introduced in the wake of the Maxwell pensions scandal which was intended to ensure that company pensions funds always had enough assets to pay out their liabilities (i.e. pensions to retired members of the scheme).The legislation uses the yield from long term gilts as the yardstick by which a pensions fund's liabilities are measured. To stay within the rules, funds have felt obliged to buy these long-term bonds, with the result that their price has gone sky high.One alternative being considered is to change the whole way liabilities are valued and, in effect, to allow the funds to invest in more exciting securities than gilts, but to couple this with an insurance fund that bails out those funds that are unable to meet their liabilities. This insurance fund would be called the Central Discontinuance Fund (CDF).
Initial margin requirementInitial margin requirement
When buying securities on margin, the proportion of the total market value of the securities that the investor must pay for in cash. The Security Exchange Act of 1934 gives the Board of Governors of the Federal Reserve the responsibility to set initial margin requirements, but individual brokerage firms are free to set higher requirements. In futures contracts, initial margin requirements are set by the exchange.
Reserve requirementsReserve requirements
The percentage of different types of deposits that member banks are required to hold on deposit at the Fed.
Dividend requirementDividend requirement
The annual earnings minimum required for payment of dividends on a preferred stock.
Export performance requirementExport performance requirement
Public Sector Net Cash RequirementPublic Sector Net Cash Requirement
Formerly known as Public Sector Borrowing Requirement (PSBR), PSNCR is the difference between the expenditure of the public sector and its income. Where there is a deficit it is financed by borrowing - principally via the sale of government gilt edged stocks (gilts).Public sector net borrowing also measures the difference between the expenditure and income of the public sector but differs from the net cash requirement in that it is measured on an accruals basis whereas the net cash requirement is mainly a cash measure.
Further SuggestionsLocal content requirement
Sinking fund requirement
Materials requirement planning
Margin requirement (options)
Domestic content requirement
Net capital requirement
Requirement Indicator Matrix
Unit labor requirement
Public Sector Borrowing Requirement
Advance deposit requirement