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Redeemable Preference Shares: as preference shares, with the issuer having the right to redeem them, so they have debt characteristics.

Reference Rate: this is a benchmark interest rate, beyond the control of the parties to the agreement, on which a floating rate is based. It will fluctuate over time but will always be in the same relationship with the reference rate. LIBOR is used as such a rate e.g. LIBOR + 2.75%

Regulatory Capital: the minimum capital required to be maintained by banks and other regulated financial institutions pursuant to, amongst other things, the Basel I and Basel II accords. Regulated by the FSA in the UK. See INTM267731 onwards.

Repo: a means of providing short term finance against collateral. The `borrower’ agrees to sell securities (such as government bonds or shares) to the `lender’, with an agreement to buy them back (repurchase) at a specified later date, either at an agreed higher price or at the market price. The interest rate implied from this `lending’ transaction is called the repo rate. There is a statutory definition of a repo in ITA07/S569. Effectively, this is a secured loan, the price difference representing the interest. The initial purchaser typically makes substitute payments to the seller in place of the interest or dividends formerly received on the securities.

Revolving Credit: a credit arrangement allowing the borrower some flexibility as to the scale and timing of a proposed borrowing or note issue. The borrower can usually increase or reduce his indebtedness with some freedom during an agreed period.