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Banking

The business of a banker, banking involves an establishment for the loaning, holding, exchanging, or issuing of money. Also deals with the transmission of funds and the extensions of credit.

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Contributors in Banking

Banking > General banking

interest rate risk (IRR)

Banking; General banking

The potential that changes in market rates of interest will reduce earnings and/or capital. The risk that changes in prevailing interest rates will adversely affect assets, ...

margin, gross margin, net margin, security margin, variation margin

Banking; General banking

(1) An amount of cash or collateral that a buyer or borrower must provide in excess of value owed to that buyer or borrower by a seller, lender or depositor. Ensures performance ...

ISDA master agreement a.k.a. the ISDA

Banking; General banking

An industry-standard agreement used between the counterparties to privately negotiated (i.e., nonexchange traded) derivatives transactions. The body of the master agreement" ...

leveraged buyout

Banking; General banking

Corporate acquisitions in which the acquiring company borrows most or all of the funds needed to finance the purchase. In a typical leveraged buyout, the buyer intends to repay ...

interest

Banking; General banking

(1) A monetary benefit paid by a borrower for the right to use a lender’s or a depositor’s funds. Usually, the interest is paid periodically over the life of the loan, deposit, or ...

market value of portfolio equity (MVPE)

Banking; General banking

The difference between the sum of the present values of all cash flows from assets and the sum of the present values of all cash flows from liabilities. In other words, the market ...

liability sensitive

Banking; General banking

Describes an entity's position when an increase in interest rates will hurt the entity and a decrease in interest rates will help the entity. An entity is liability sensitive when ...