R
Banking Terms - Rrandom access memory (RAM) - (type of computer temporary storage area where data and program instructions can temporarily be held, accessed, and altered)
Rapid Application Development (RAD) - (a software development process that allows software to be developed in a short time using automated tools and techniques)
read-only memory (ROM) - (computer memory containing instructions burned into a memory chip during manufacture, which cannot be altered, and can only be read)
Real Estate Investment Trust (REIT) - (investor-owned corporation, trust, or association, that sells shares to investors and invests in income-producing property)
Real Estate Mortgage Investment Conduit (REMIC) - (mortgage securities vehicle, authorized by the Tax Reform Act of 1986, that holds commercial and residential mortgages in trust, assembles the mortgages into pools, and issues securities representing an undivided interest in these mortgages)
Real Estate Settlement Procedures Act (RESPA) - (federal law requiring lenders to give home mortgage borrowers an estimate of total charges prior to the loan closing)
Real-Time Gross Settlement (RTGS) - (funds transfer system used by banks providing immediately available transfers of funds on a gross (total) basis, rather than on a net basis, where offsetting debits or credits are netted against the total and settlement of the net amount occurs at the end of the day)
Receiving Depository Financial Institution (RDFI) - (in the nationwide Automated Clearing House (ACH) system, a bank or other depository institution eligible to receive electronic credit and debit entries from another bank for posting to a customer's account)
Reduction-Option Loan (ROL) - (hybrid between a fixed-rate and adjustable mortgage and a cheaper alternative to refinancing, whereby the borrower has the one-time option from the second through the fifth year to match the current mortgage rate, which then becomes fixed for the rest of the term)
Redundant Array of Independent (Inexpensive) Disks (RAID) - (a combination of disk drives that function as a single unit for the storage and retrieval of data)
Refunding Escrow Deposits (REDs) - (financial instruments in which bond investors are obligated to buy future bond issues at a higher rate, with interim investments in Treasury bonds held in escrow, providing money to buy the new issue)
Regional Check Processing Center (RCPC) - (check processing center owned by a Federal Reserve Bank, that services depository institutions located in one of the 12 Federal Reserve districts)
Registered Investment Adviser (RIA) - (individual, registered with the Securities and Exchange Commmision, who provides financial advice to investors on stock or securities investments)
Regulatory Accounting Principles (RAP) - (permissive accounting rules and procedures authorized in the 1980s by the Home Loan Bank Board to allow S&Ls to stay in business - the rules were phased out after 1989 when Congress appropriated funds to pay depositor claims)
Regulatory Alerts (RA) - (bulletins/announcements published by the National Credit Union Administration (NCUA) sent to credit union boards of directors, sharing information, announcing new policies, and providing guidance for staff)
Remote Deposit Capture (RDC) - (deposit transaction delivery system which allows a bank's customers to scan a check or monetary instrument, and then transmit the scanned or digitized image to the institution - scanning and transmission activities can occur at remote locations)
Remote Service Unit (RSU) - (an automated facility operated by a customer that performs core branching services, but is not a branch - services offered may include an automated teller machine, automated loan machine, and an automated device for receiving deposits (check scanner))
Remotely Created Check (RCC) - (a check that is not created by the paying bank (often created by a payee or its service provider), drawn on a customer's bank account - the check often is authorized by the customer remotely, by telephone or online, and therefore, does not bear the customer's handwritten signature (sometimes called a demand draft))
Report of Examination (ROE) - (written report issued at the end of a bank examination in which the examiner documents their findings and conclusions, including deficiencies or regulatory violations, along with recommendations for corrective action)
repurchase agreement (RP) - (also called repos or buybacks) (agreement between a seller and a buyer, usually of U.S. government securities, whereby the seller agrees to repurchase the securities at an agreed upon price and usually, at a stated time - repurchase agreements are used by the Federal Reserve, through its open market operations to adjust the money supply)
repurchase agreement (repo) - (sale of securities coupled with an agreement to repurchase the securities at a higher price on a later date)
required minimum distribution (RMD) - (minimum amount that must be withdrawn annually from a retirement plan starting with the year in which the account owner reaches 70 1/2 years of age or, if later, the year in which the account owner retires)
reserve lag accounting (RLA) - (also known as lagged reserves accounting (LRA)) (accounting method under which a bank's reserve for the current week is determined by this week's liabilities, and the reserve for payment is still that of last week)
Reserve Recognition Accounting (RRA) - (method of accounting used in the oil and gas industry to value resource reserves)
Resolution Funding Corporation (RFC) - (government-sponsored corporation established by the Financial Institutions Reform, Recovery and Enforcement Act of 1989 to raise funds for use in liquidating insolvent savings and loan associations)
Resolution Trust Corporation (RTC) - (government-sponsored corporation established by the Financial Institutions Reform, Recovery and Enforcement Act of 1989 to transfer assets of insolvent savings and loan associations to financially sound institutions - its authorization expired on December 31, 1995 and its duties were transferred to the Federal Deposit Insurance Corporation (FDIC))
Return on Assets (ROA) - (net income divided by total assets)
Return on Capital (ROC) - (income, after taxes, divided by capital)
Return on Equity (ROE) - (measure of the returrns earned on an owner's investment - net income divided by total equity - a profitability ratio measuring how well equity capital is used)
Return on Investment (ROI) - (also known as Return on Invested Capital) (measure of the earning power of assets - amount expressed as a percentage, earned on a company's total capital - calculated by dividing total capital into earnings before interest, taxes, and dividends)
Revenue Anticipation Note (RAN) - (short-term debt security issued by a municipality to finance operations, repayable from anticipated future revenues, such as sales taxes)
Reverse Annuity Mortgage (RAM) - (mortgage instrument that allows an elderly person to live off the equity in a fully paid-for house)
reverse repurchase agreement (RRP) - (arrangement whereby securities dealers agree to buy securities and the investor agrees to repurchase them at a later date)
Revolving Underwriting Facility (RUF) - (medium-term Euronote, usually between three and seven years maturity, facility (single-bank arranger) that guarantees the sale of short-term promissory notes (Euronotes) issued by the borrower at or below a predetermined interest rate)
Right of Accumulation (ROA) - (right associated with preferred stock where dividends, if omitted because of insufficient earnings or for any other reason, accumulate until paid out - preferred stock dividends have precedence over common dividends, which cannot be paid as long as a cumulative preferred obligation exists)
Risk of Material Misstatement (RMM) - (the risk, in auditing, that financial statements may include a material misstatement - an omission or misstatement of accounting data so great that it misleads financial statement readers)
Risk-Weighted Average (RWA) - (capital calculation with assets being weighted for risk)