Future Margin Income (FMI)

For banking institutions the amount of income anticipated to be generated by the relevant exposures over the next twelve months that can reasonably be assumed to be available to cover potential credit losses on the exposures (i.e., after covering normal business expenses). FMI must not include income anticipated from new accounts. Assumptions regarding changes in expected levels of balances (and therefore income) on existing accounts shall be in line with historical experience, considering also the potential impact of anticipated business conditions. FMI should be measured net of reserve expenses (provisions) since there is a separate offset available for such reserves (provisions).