by TheBusinessProfessor | Feb 23, 2025 | Banking, Lending, and Credit Industry
What is a Bank Reserve?A bank reserve refers to a portion of currency or bank deposits that a bank is required to have as its holdings. This portion is not lent out as loans, instead, they are put aside in a liquid account to guarantee the solvency of the bank....
by TheBusinessProfessor | Feb 23, 2025 | Banking, Lending, and Credit Industry
Update Table of Contents What is a Bankers’ Bank?How Does a Bankers’ Bank Work?Bankers’ Bank and Credit UnionsExample of a Bankers’ Bank What is a Bankers’ Bank?A bankers’ bank is a type of bank that transacts with other banks, this...
by TheBusinessProfessor | Feb 23, 2025 | Banking, Lending, and Credit Industry
Update Table of Contents What is Per Diem Interest?How Does Per Diem Interest Work?Calculating Per Diem Interest What is Per Diem Interest?Per diem interest is interest charged on a loan at a daily rate, as opposed to the monthly or annual percentage rate. Generally,...
by TheBusinessProfessor | Feb 23, 2025 | Banking, Lending, and Credit Industry
Update Table of Contents What is a Balloon Maturity?How Does Balloon Maturity Work?Balloon Maturity in Mortgages What is a Balloon Maturity?Balloon maturity means that the principal or face value of a debt instrument is due in a single, lump-sum payment at the end of...
by TheBusinessProfessor | Feb 23, 2025 | Banking, Lending, and Credit Industry
Update Table of Contents What is a Bank Rating?How Does a Bank Rating Work?Bank Rating and Examples of CAMELS Criteria What is a Bank Rating?Bank Rating refers to a formula developed by the Federal Deposit Insurance Corporation (FDIC) to rate the safety and soundness...
by TheBusinessProfessor | Feb 23, 2025 | Banking, Lending, and Credit Industry
Update Table of Contents What is an Agreement Corporation?How Does an Agreement Corporation Work?The Edge Act What is an Agreement Corporation?An agreement corporation can be defined as a corporation that has been chartered by a state to take part in international...
