Personal banking

Personal banking

Referring to the business when banks carry out transactions with customers directly, rather than with other banking institutions or with large corporations.

Industry: Banking

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Personal banking

linear yield curve smoothing

Banking; Personal banking

The simple process of "drawing" straight lines to connect the knot points. The simplest but least accurate technique for yield curve smoothing.

line of credit

Banking; Personal banking

A type of credit facility. The specific meaning of the term varies from bank to bank. Since the various uses often cause confusion, two definitions are presented here. In this book, the second ...

liquidity

Banking; Personal banking

Both the capacity and the perceived capacity to meet all obligations whenever due and to take advantage of business opportunities important to the future of the enterprise. The capacity and the ...

liquidity contingency risk

Banking; Personal banking

The risk that future events may require a materially larger amount of liquidity than the financial institution currently requires. One of the three primary components of liquidity risk along with ...

The risk arising from the implied obligation of a bank to continue making new loans or other new business related cash flows in order to preserve its business franchise even though it may be having ...

liquidity in the ordinary course of business

Banking; Personal banking

One of the three main types of liquidity-need environments. An institution's "going concern" need for liquidity. Funding required for the normal ebb and flow of cash in the course of conducting bank ...

liquidity mismatch or liquidity mismatch risk

Banking; Personal banking

The expected amount of liquidity risk based on the mismatch between contractual amounts and dates for inflows and outflows. Also called funding gap, liquidity gap, or term liquidity risk. One of the ...