Glossary

Helpful A-Z glossary listing key Lloyds Banking Group terms and their definition

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F

Fair value adjustment

Fair value adjustments arise on acquisition when assets and liabilities are acquired at fair values that are different from the carrying values in the acquired company. In respect of the Group’s acquisition of HBOS the principal adjustments were write-downs in respect of loans and advances to customers and debt issued.

Forbearance

Forbearance takes place when a concession is made on the contractual terms of  loan in response to an obligor's financial difficulties.

Full time equivalent

A full time employee works a standard five day week. The hours or days worked by part time employees are measured against this standard and accumulated along with the number of full time employees and counted as full time equivalents. This is a more consistent measure of the amount of time worked than employee numbers which will fluctuate as the mix of part-time and full-time employees changes.

Funded/unfunded exposures

Exposures where the notional amount of the transaction is either funded or unfunded.

Funding risk

The risk that the Group does not have sufficiently stable and diverse sources of funding or the funding structure is inefficient