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What is CDSR in Banking?

Published in Banking Regulations 1 min read

CDSR in banking specifically refers to the Capital and Debt Service Reserve Account established under the terms of an Amended CDSR Agreement.

This account serves as a crucial financial safety net. While the acronym alone may not be universally defined across all banking contexts, within the specific context of an "Amended CDSR Agreement," it consistently represents this reserve account.

Essentially, it's a dedicated fund designed to provide a buffer against potential shortfalls in meeting debt service obligations and maintaining adequate capital levels. The specifics of how this account functions, its funding sources, and its drawdown conditions are all detailed in the Amended CDSR Agreement itself.

Therefore, without that agreement, the term remains undefined.

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