Savings
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Book Runner: Definition & Role in Investment Banking
What Is a Book Runner? The term book runner or a bookrunner refers to the primary underwriter or lead coordinator in the issuance of new equity, debt, or securities instruments. The book runner
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Bank Guarantee: Definition, Purpose & How It Works
What Is a Bank Guarantee? A bank guarantee is a type of financial backstop offered by a lending institution. The bank guarantee means that the lender will ensure that the liabilities of a debto
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Understanding Banks: Types, Functions, and Regulations
What Is a Bank? A bank is a financial institution licensed to receive deposits and make loans. Banks may also provide financial services such as wealth management, currency exchange, and safe d
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Understanding Bank Reserves: A Key to Financial Stability
What Are Bank Reserves? Bank reserves are the cash minimums that financial institutions must have on hand in order to meet central bank requirements. This is real paper money that must be kept
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Understanding Bank Credit: Loans for Individuals & Businesses
What Is Bank Credit? The term bank credit refers to the amount of credit available to a business or individual from a banking institution in the form of loans. Bank credit, therefore, is the to
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Prepaid Cards vs. Gift Cards: Key Differences & Which is Right for You
Prepaid Cards vs. Gift Cards: An Overview Prepaid cards and gift cards are both pieces of plastic that can be used to make purchases. They make popular presents as well: A versatile way to give
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Basel III Capital Adequacy Ratio: Minimum Requirements Explained
Under Basel III, the minimum capital adequacy ratio that banks must maintain is 8%. The capital adequacy ratio measures a banks capital in relation to its risk-weighted assets. The capital-to-risk-w
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Investment Banks vs. Commercial Banks: Key Differences Explained
Investment banks and commercial banks represent two divisions of the banking industry, and each type provides substantially different services. Investment banks expedite the purchase and sales of
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Nostro vs. Vostro Accounts: Understanding the Difference
Nostro Account vs. Vostro Account Nostro and vostro are two different terms used to describe the same bank account. The terms are used when one bank has another banks money on deposit
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Investment Banks vs. Merchant Banks: Key Differences Explained
Investment Banks vs. Merchant Banks: An Overview Investment banks and merchant banks are different types of financial institutions. These banks do not serve consumers—individual clients or smal
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Understanding Tier 1 Capital: A Key Indicator of Bank Financial Health
What Is Tier 1 Capital? Tier 1 capital refers to the core capital held in a bank's reserves, and is used to fund business activities for the bank's clients. It includes common stock, as
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Understanding Tier 1 Leverage Ratio: A Key Indicator of Bank Financial Health
What Is the Tier 1 Leverage Ratio? The Tier 1 leverage ratio measures a banks core capital relative to its total assets. The ratio looks specifically at Tier 1 capital to judge how leveraged a
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Promissory Note: Definition, Terms & How They Work
What Is a Promissory Note? A promissory note is a debt instrument that contains a written promise by one party (the notes issuer or maker) to pay another party (the notes payee) a definite sum
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Understanding Overdrafts: A Comprehensive Guide
What Is an Overdraft? An overdraft occurs when there isnt enough money in an account to cover a transaction or withdrawal, but the bank allows the transaction anyway. Essentially, its an e
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Understanding Money Orders: Definition, Use & Benefits
What Is a Money Order? A money order is a certificate, usually issued by a government or banking institution, that allows the stated payee to receive cash on demand. A money order functions muc
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Disbursement Explained: Definition, Types & Importance in Business
What Is Disbursement? Disbursement means paying out money. The term disbursement may be used to describe money paid into a business' operating budget, the delivery of a loan amount to a bor
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Understanding Deposit Slips: A Comprehensive Guide
What Is a Deposit Slip? A deposit slip is a small paper form that a bank customer includes when depositing funds into a bank account. A deposit slip, by definition, contains the date, the name
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Understanding Credit Unions: Your Financial Cooperative
What Is a Credit Union? A credit union is a type of financial cooperative that provides traditional banking services. Ranging in size from small, volunteer-only operations to large entities wit
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Compound Interest Explained: How to Grow Your Wealth
What Is Compound Interest? Compound interest (or compounding interest) is the interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from prev
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Understanding Bank Statements: A Comprehensive Guide
What Is a Bank Statement? A bank statement is a document (also known as an account statement) that is typically sent by the bank to the account holder every month, summarizing all the transacti
Savings
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Credit Card Rental Car Insurance: Understanding Coverage & LimitsRental car insurance on a credit card may help cover your costs if your rental is in an accident or stolen, but coverage is typically limited. Many popular credit card brands — includi...
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Reviving Your Retirement: Strategies for an Older Funddiv.cust...
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Understanding Mortgage Types: A Comprehensive Guide for Home BuyersAs a prospective home buyer, it’s just as important to research types of mortgages as the neighborhoods you want to live in. Applying for a home loan can be complicated, and deciding whic...
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Protect Your Child Tax Credit: Fraud Prevention & Security TipsHere's how to avoid becoming a ...