The Bank Administration Institute (BAI) is a professional association that represents the interests of the banking industry. Its members include banks of all sizes and types, as well as other financial institutions. The BAI provides educational resources, networking opportunities, and advocacy on behalf of its members. What is BAI export? The Bank Administration Institute (BAI) … Read more
A merchant bank is a type of financial institution that provides capital to companies in the form of loans or investments. Merchant banks are also involved in underwriting, issuing, and trading securities. What is the difference between merchant bank and commercial bank? A merchant bank is a bank that provides capital to businesses in the … Read more
A convenience fee is a charge assessed by a financial institution for processing a transaction that is not conducted in person. This type of fee is typically assessed for transactions conducted over the phone or online. The fee is designed to offset the costs associated with processing the transaction, such as customer service costs, processing … Read more
A consortium bank is a type of bank that is owned by a group of companies or other entities. The purpose of a consortium bank is to provide financing to its members, which can be used for a variety of purposes such as investments, working capital, or other corporate purposes. Consortium banks typically have a … Read more
A net-worth certificate is a document that lists an individual’s or company’s assets and liabilities, and is used to calculate the individual’s or company’s net worth. The certificate is typically used by banks and other financial institutions to assess an individual’s or company’s financial health and creditworthiness. Why is it called balance sheet? The term … Read more
A Notice of Dishonor is a formal notice that is sent to a borrower when they have failed to make a payment on their loan. This notice informs the borrower that they are in default on their loan and that they have a certain amount of time to remedy the situation. If the borrower does … Read more
The Morris Plan Bank was a type of bank created in the early 20th century in response to the Panic of 1907. These banks offered small loans to working-class people who did not have access to traditional banking products. The loans were typically used for things like home repairs or medical bills. The Morris Plan … Read more
According to the Basel Accords, Tier 2 capital consists of items such as revaluation reserves, hybrid instruments, and subordinated term debt. This type of capital is not as easily convertible to cash as Tier 1 capital, but still provides a measure of protection for a bank’s creditors in the event of insolvency. What is a … Read more
A money center bank is a bank that provides a wide range of services, including lending, deposit-taking, and investment banking. Money center banks are typically large, multinational banks. The term “money center bank” is sometimes used interchangeably with “universal bank.” The largest money center banks in the United States are JPMorgan Chase, Bank of America, … Read more
The term “universal banking” is used to describe a banking system where one institution provides a full range of financial services, including investment banking, commercial banking, and insurance. In the United States, the term is most commonly used in reference to the banking system in Europe, where universal banks are more common. In the United … Read more
