Currency Transaction Report (CTR): Use in Banking and Triggers When should a currency transaction report CTR be filed? A currency transaction report (CTR) is a type of financial record that must be filed with the US Department of the Treasury by any person or business who conducts a currency transaction (including cash) of more than … Read more
Tier 3 capital refers to the third tier of a bank’s capital reserves, which consists of certain types of subordinated debt, including upper-tier 2 debt and other instruments that are not included in tiers 1 or 2. The tier 3 capital ratio is the ratio of a bank’s tier 3 capital to its total risk-weighted … Read more
The 3-6-3 rule is a popular saying in banking that refers to the three steps a bank takes when lending money: first, they lend money to depositors at a low interest rate; second, they lend money to borrowers at a higher interest rate; and finally, they charge fees for services. The rule is named for … Read more
What is a digital wallet? A digital wallet is a type of online payment system that allows users to store, send, and receive money electronically. There are many different types of digital wallets, but the most common one is the e-wallet. What are the types of digital wallets? There are many different types of digital … Read more
How Automated Teller Machines Work and How to Use Them. What are the parts of ATM machine? An ATM machine typically consists of the following parts: 1. A card reader – This is used to read the information on the card that is inserted into the machine. 2. A keypad – This is used to … Read more
Risk-Weighted Assets (RWA) Definition: What It Means and Its Place in Basel III What is RWA in simple terms? RWA stands for Risk Weighted Assets. It is a measure used by banks to assess their riskiness. The higher the RWA, the higher the risk of the bank. How do you calculate RWA for operational risk? … Read more
MICR: What is a Magnetic Ink Character Recognition Line? Is a MICR an input device? A MICR is a machine-readable code that is used in the banking industry to facilitate the processing of checks. The code is printed on the bottom of checks and consists of a series of numbers and symbols. While a MICR … Read more
A wire room is a room in a bank where wire transfers are processed. Wire transfers are a type of electronic funds transfer (EFT) that allows customers to send and receive money quickly and securely. Wire rooms are typically manned by a team of trained professionals who are responsible for ensuring that all wire transfer … Read more
The Core Capital Definition is a term used in the banking industry to describe the minimum amount of capital that a bank must hold in order to be considered solvent. This capital is composed of equity and other financial instruments that can be readily converted into cash. The Core Capital Definition is used by regulators … Read more
A paying agent is a financial institution that is authorized to disburse payments on behalf of a company or other entity. The paying agent may be a bank, trust company, or other type of financial institution. The entity that appoints the paying agent is typically the issuer of bonds or other debt securities. The paying … Read more
