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Banking

Wedding Cake Promissory Note

A type of structured promissory note that has multiple double no touch barriers. These barriers determine an array of possible…

Reserve Maintenance Period

A period of time over which actual reserves (of a depository institution) held at a central bank (e.g. the Fed)…

CP Rate

The interest rate on commercial paper (CP) which represents are an unsecured, short-term debt instrument issued by a company or…

Relationship CD

A certificate of deposit (CD) that builds on fostering a special relationship with the holder (depositor) by entitling him to…

Roly-Poly Certificate of Deposit

Colloquial for rollover certificate of deposit; a short-term certificate of deposit (CD), usually with a 6-month maturity, where the issuer…

Rollover CD

A short-term certificate of deposit (CD), usually with a 6-month maturity, where the issuer reissues or extends (rolls over) the…

Restricted Asset

An asset that a bank or financial institution is prevented from disposing of in any form including liquidation, sale, transfer...

Encumbered Asset

An asset that a bank or financial institution is prevented from disposing of in any form including liquidation, sale, transfer...

Balloon Loan

A loan that is paid back in level installments on a long-term payment schedule (10-20 years, or even more), and...

Capital Ratio

A ratio relating a bank's capital to its risk-weighted assets (RWAs). The main forms of this ratio include tier-1 capital...