Toxic Assets

Asset Protection Scheme
A UK government initiative launched in February 2009 to revive bank lending in the wake of the global financial crisis by insuring banks against further losses from toxic assets.
Fair Value Accounting (FVA)
A form of accounting in which assets are measured at their current market price, recognizing all changes in value within the profit and loss account, differing from traditional historical-cost accounting by recording unrealized gains.
Subprime Lending
An exploration of subprime lending: providing loans to borrowers with poor credit ratings. Discussing the risks, costs, and historical implications—especially the role in the 2007-08 financial crisis.
Toxic Assets
Toxic assets are financial instruments for which there is no longer a functioning market, making their value highly uncertain and leading to difficulties in selling them at reasonable prices. The term gained prominence during the financial crisis following the 2008 subprime lending debacle.
Troubled Asset Relief Program (TARP)
The Troubled Asset Relief Program (TARP) was a U.S. government initiative aimed at stabilizing the financial system and restoring bank lending during the subprime mortgage crisis by purchasing up to $700 billion in troubled assets from financial institutions.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.