The Credit Glossary
Plain-English definitions of the ratios and terms lenders use every day, each one linked to the Learning Path that teaches how to apply it.
Community Bank Leverage Ratio (CBLR)
An optional, simplified capital framework for qualifying community banks: a bank that keeps its leverage ratio above the required level, 8% as of July 1, 2026, and meets the other criteria is deemed well capitalized without calculating risk-based capital ratios.
De Novo Bank
A newly chartered bank. Organizers apply for a charter and, for most banks, federal deposit insurance, and the new bank operates under closer supervision during its first years.
Debt Service Coverage Ratio (DSCR)
How comfortably a borrower can cover its loan payments from cash flow, measured as cash flow available for debt service divided by total debt service.
Debt Yield
A property's net operating income divided by the loan amount, expressed as a percentage, used to size a commercial real estate loan independently of rate, amortization, and cap rate.
Loan-to-Value (LTV)
The loan amount divided by the appraised value (or purchase price) of the collateral, expressed as a percentage, measuring the equity cushion protecting the lender.
Matter Requiring Attention (MRA)
A written examiner finding that requires a bank to correct a practice. Under the OCC and FDIC rule effective November 2, 2026, MRAs are limited to imprudent practices that could reasonably be expected to materially harm a bank’s financial condition or present a material risk of loss to the Deposit Insurance Fund, or to actual violations of banking law.
Net Operating Income (NOI)
A property's income after operating expenses but before debt service, capital expenditures, income taxes, and depreciation, the foundation of every commercial real estate credit measure.