Banking

Bank Regulation – a form of Government Regulation

Bank Regulation – a form of Government Regulation

Bank Regulation is the formulation and issuance by authorized agencies of specific rules or regulations, under governing law, for the conduct and structure of banking. It is intended to maintain banks’ solvency by avoiding excessive risk. It is a form of government regulation that subjects ba.....

Read More »

Credit Union in Finance Term

Credit Union in Finance Term

Credit Union is a type of financial cooperative that provides traditional banking services. A credit union is a member-owned financial cooperative, controlled by its members and operated on the principle of people helping people, providing its member’s credit at competitive rates as well as.....

Read More »

Fractional-reserve Banking Practice

Fractional-reserve Banking Practice

Fractional reserve banking is a system in which only a fraction of bank deposits are backed by actual cash on hand and available for withdrawal. It is the most common form of banking practiced by commercial banks worldwide. It is a banking system in which banks only hold a fraction of the money t.....

Read More »

Cooperative Bank

Cooperative Bank

Co-operative banks are the banks whose main objective is to provide financial assistance to economically weaker sections of the society. Cooperative banking is retail and commercial banking organized on a cooperative basis. Such banks are registered under the Cooperative Societies Act. Cooperati.....

Read More »

Mutual Savings Bank – a Financial Institution

Mutual Savings Bank – a Financial Institution

A mutual savings bank (MSB) is a type of financial institution that functions much like a bank, but with a different ownership structure. It is a financial institution chartered by a central or regional government, without capital stock, that is owned by its members who subscribe to a common fun.....

Read More »

Full-reserve Banking System

Full-reserve Banking System

Full-reserve banking occurs if banks keep all deposits in reserve. Full-reserve banking is a proposed alternative to fractional-reserve banking in which banks would be required to keep the full amount of each depositor’s funds in cash, ready for immediate withdrawal on demand. Full-reserve .....

Read More »

Narrow Banking

Narrow Banking

Banking is the acceptance of deposits from the public for the purpose of lending to the borrowers and for investing in securities. Narrow banking is a proposed type of bank called a narrow bank also called a safe bank. It is a term used to describe a very restricted form of banking, where the ins.....

Read More »

Overdraft

Overdraft

An overdraft occurs when money is withdrawn from a bank account and the available balance goes below zero. In this situation, the account is said to be “overdrawn”. It is a deficit in a bank account caused by drawing more money than the account holds. It occurs when the amount withdra.....

Read More »

Ethical Bank

Ethical Bank

An ethical bank, also known as a sustainable bank, is a bank concerned with the social and environmental impacts of its investments and loans. Ethical banking involves consciousness of how banking practices affect society and the environment. It can help to build strong, financially capable commu.....

Read More »

Interbank Lending Market

Interbank Lending Market

Interbank Lending Market is the medium by which banks extend loans to one another is called the interbank lending market. These are short-term instruments traded on rather risk-intolerant markets. The interbank lending market is a market in which banks lend funds to one another for a specified t.....

Read More »

Current Account in Bank

Current Account in Bank

Current Account It is one of the kinds of banking account from which money can be withdrawn at any time without any prior notice, as is required in the case of a Fixed Deposit Account. It is a type of deposit account maintained by individuals who carry out a significantly higher number of transac.....

Read More »

Collateral Security

Collateral Security

Collateral Security Collateral is an asset that a lender accepts as security for extending a loan. Collateral security is any property-movable or immovable property offered for securing a loan. A commercial bank is a type of an organization that deals in credit i,e. it accepts deposits from the p.....

Read More »