Correspondent & Respondent Bank – Explained

by TheBusinessProfessor | Feb 23, 2025 | Banking, Lending, and Credit Industry

Update Table of Contents What is a Correspondent Bank?How Does a Correspondent Bank Work?Example of a Correspondent Bank Transaction  What is a Correspondent Bank?Correspondent banking is an agreement between two banks whereby one bank (correspondent bank) carries on...

Assumable Mortgage – Explained

by TheBusinessProfessor | Feb 23, 2025 | Banking, Lending, and Credit Industry

Update Table of Contents What is an Assumable Mortgage?How Does an Assumable Mortgage Work?Even More of an Explanation of an Assumable Mortgage What is an Assumable Mortgage?An assumable mortgage is a method of financing that allows the transfer of an existing...

Capitalization Ratios – Explained

by TheBusinessProfessor | Feb 23, 2025 | Banking, Lending, and Credit Industry

Update Table of Contents What are Capitalization Ratios?What are the common Capitalization Ratios? What are Capitalization Ratios?Capitalization ratio is a financial metric that measures the solvency of a firm by examining its capital structure which is the...

Annualize – Explained

by TheBusinessProfessor | Feb 23, 2025 | Banking, Lending, and Credit Industry

Update Table of Contents What is Annualize?How Does Annualization Work?Company PerformanceLoansTax PurposesInvestmentsKey TakeawaysSpecial Considerations and Limitations of Annualizing What is Annualize?The term ‘to annualize’ means to express a short-term...

Brokered Deposit – Explained

by TheBusinessProfessor | Feb 23, 2025 | Banking, Lending, and Credit Industry

Update Table of Contents What is a Brokered Deposit?How Does a Brokered Deposit Work?Benefits of Brokered DepositConsiderations What is a Brokered Deposit?A deposit broker is anyone in the business in charge of facilitating a third-party fund placement with an insured...

Credit Card Accountability, Responsibility, and Disclosure Act – Explained

by TheBusinessProfessor | Feb 23, 2025 | Banking, Lending, and Credit Industry

Update Table of Contents What is the Credit Card Accountability, Responsibility, and Disclosure Act of 2009?How Does the Credit Card Accountability, Responsibility, and Disclosure Act Of 2009 Work?Credit CARD Act 2009 ProvisionsWhy is the Credit CARD Act of 2009...