finance
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Basel Accords: Understanding Banking Regulations & Credit Risk
The Basel Accords refers to a set of banking supervision regulations set by the Basel Committee on Banking Supervision (BCBS). They were developed over several years between 1980 and 2011, undergoing
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Banking Fundamentals: A Comprehensive Overview for Beginners
Banking fundamentals refer to the concepts and principles relating to the practice of banking. Banking is an industry that deals with credit facilities, storage for cash, investments, and other financ
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Understanding Bank Business Segments: Retail, Wholesale & Wealth Management
A bank’s major business segments are retail banking, wholesale banking, and wealth managementPrivate Wealth ManagementPrivate wealth management is an investment practice that involves financial
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Understanding Key Bank Ratios: A Comprehensive Guide
Bank-specific ratios, such as net interest margin (NIM), provision for credit losses (PCL), and efficiency ratio are unique to the banking industry. Similar to companies in other sectors, banks have s
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Bank Stress Tests: Understanding Financial Resilience
A bank stress test is a simulation or analysis conducted to analyze how a bank will be impacted under adverse market conditions – for example, a financial market crash or recessionRecessionReces
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Understanding Bank Statements: A Comprehensive Guide
A bank statement is a monthly financial document that provides a summary of the account holder’s activity. Bank statements are generally prepared by the bank for the account holder at the end of
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Understanding Bank Reserves: A Comprehensive Guide
Bank reserves are the minimum cash reserves that financial institutions must keep in their vaults at any given time. The minimum cash reserve requirements for financial institutions in each country ar
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Understanding Bank Ratings: A Guide to Financial Stability
Bank rating is a measure of financial soundness for banks. Just like credit agencies such as Standard & Poor’s (S&P)S&P – Standard and PoorsStandard & Poor’s is an Am
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Bank Line of Credit (LOC): Definition & How It Works
A “bank line” or a “line of credit” (LOC) is a kind of financing that is extended to an individual, corporationCorporate InformationLegal corporate information about Corporate
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Understanding Bank Identification Numbers (BINs): What They Are & Why They Matter
A bank identification number (BIN) represents the first four to six digits on a credit card. The first four to six digits identify the financial institution that issued the card. The BIN is a security
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BIS: Understanding the Bank for International Settlements - Role & Impact
The Bank for International Settlements (BIS) started in 1930 and is owned by the central banksEuropean Central Bank (ECB)The European Central Bank (ECB) is one of the seven institutions of the EU and
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Bank Drafts: Definition, How They Work & Usage
A bank draft is a convenient and secure instrument for making large payments without having to withdraw cash from one’s account. Bank drafts are guaranteed by financial institutions and can be u
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Understanding Bank Overdrafts: Causes, Costs & Solutions
A bank account overdraft happens when an individual’s bank account balance goes down to below zero, resulting in a negative balance. It usually happens when there are no more funds in the accoun
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Bancassurance Explained: How Banks and Insurance Partner
Bancassurance refers to an agreement between a bank and an insurance company. In bancassurance, the insurance company can use the bank’s distribution channels to sell products. Banks, in return,
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Balanced Scorecard: A Comprehensive Guide to Strategic Performance
A balanced scorecard is a strategic planning framework that companies use to assign priority to their products, projects, and services; communicate about their targets or goals; and plan their routine
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Understanding Balanced Budgets: Definition & Importance
A balanced budget is a budgetOperating BudgetAn operating budget consists of revenues and expenses over a period of time, typically a quarter or a year, which a company uses to plan its operations. Do
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Bail-In Clauses: Understanding Their Role in Financial Stability
A bail-In clause is used in times of bankruptcyBankruptcyBankruptcy is the legal status of a human or a non-human entity (a firm or a government agency) that is unable to repay its outstanding de
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Backstop: Understanding Financial Safety Nets and Contingency Funding
A backstop is a financial arrangement that creates a secondary source of funds in case the primary source is not enough to meet current needs. It can also be thought of as an insurance policy that cov
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Understanding Back Charges: Definition, Causes & Avoidance
A back charge is a bill sent for an expense that occurred at a previous time. Some of the reasons why such a charge may occur include collecting payment on a good/service that wasn’t paid before
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Understanding Average Selling Price (ASP): Definition & Calculation
The average selling price (ASP) is a term that refers to the price that a good or service is sold for. As the name implies, it is an average price. If a company sells hundreds of thousands of cell pho
finance
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Federal COVID-19 Relief: $600 Stimulus Checks Coming SoonThe news is in, at the last possible minute: Congress has approved a $900 billion COVID-19 relief bill that's going to include individual payouts. If you've been hurting during the pandemic ec...
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Global Crypto Revolution: China & Central Bank Digital CurrenciesOne of the hottest topics in cryptocurrencies is the prospect of major economies launching state-backed digital coins. China’s central bank recen...
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Supply Chain Disruptions: Should You Buy in Bulk?Many or all of the products here are from our partners that pay us a commission. It’s how we make money. But our editorial integrity ensures our experts’ opi...
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Credit Card Balance Transfers: A Comprehensive GuideOne of the common ways to manage multiple credit cards and pay off debt quickly is by doing a credit card balance transfer. Are you wondering, how do balance transfers o...