A high street bank is a bank that has a branch on a high street, as opposed to an off-site location. High street banks are typically the largest banks in the UK, and offer a wide range of services, including personal and business banking, mortgages, loans, and investment advice. What are some banking terms? ATM: … Read more
A checking account is a type of bank account where customers can deposit and withdraw money as needed. Checking accounts are the most common type of bank account and are typically used for everyday transactions such as paying bills and shopping. Customers typically receive a debit card and checks with their checking account, which they … Read more
A subsidiary bank is a bank that is owned by another bank. The parent bank may be either a domestic bank or a foreign bank. The subsidiary bank may be located in the same country as the parent bank or in a different country. The term “subsidiary bank” is used to distinguish between banks that … Read more
An Irrevocable Letter of Credit (ILOC) is a letter of credit that cannot be changed or canceled by the issuing bank without the approval of all parties involved. Once an ILOC is issued, the issuing bank is obligated to pay the beneficiary the specified amount of money, as long as the beneficiary meets the conditions … Read more
The term “bad bank” is used to describe a financial institution that is in trouble or is not doing well. This can be due to a variety of reasons, such as bad loans, mismanagement, or a weak economy. When a bank is in trouble, it is said to be “troubled” or “distressed.” There are a … Read more
A bank card is a card issued by a bank that gives the cardholder access to their account. The card can be used to withdraw cash, make purchases, and transfer funds. Bank cards are also known as debit cards or ATM cards. What are the 4 types of credit? There are four types of credit: … Read more
A niche bank is a type of financial institution that specializes in a particular type of banking service or sector of the economy. Niche banks can be either traditional banks that have carved out a specific niche in the market, or they can be non-traditional financial institutions that focus on a specific niche. Niche banks … Read more
The Federal Deposit Insurance Corporation (FDIC) is a U.S. government corporation providing deposit insurance to depositors in U.S. banks. The FDIC was created by the Glass-Steagall Act of 1933 during the Great Depression to restore public confidence in the banking system. FDIC-insured accounts are accounts that have been deposited with a bank that is FDIC-insured. … Read more
A dormant account is defined as an account that has had no activity for a period of time, typically 12 months. The account may be subject to fees and may be closed if it remains inactive for an extended period of time. Why are dormant accounts a risk? There are a few reasons why dormant … Read more
The Advanced Internal Rating-Based (AIRB) Approach is a framework for banks to use when estimating the probability of default (PD) of a borrower. The AIRB Approach was developed by the Basel Committee on Banking Supervision (BCBS) and first published in 2003. Under the AIRB Approach, a bank must first develop an internal rating system for … Read more
