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Banking

Base Rate

The interest rate which is set and used by banks and financial institutions as a basis for determining their lending...

Collateralization

The pledging of an asset or property by a borrower to secure a bank loan, where a lender has the...

Cross Collateralization

The use of an asset or property already pledged for one loan as collateral for another loan. For example, cross...

Credit Transformation

A type of transformation which involves a bank’s credit risk. It is typically conducted by investing in securities that have...

Hypothec

A security or right which is given to a creditor over a debtor's property without transfer of possession or title....

Hypothecation

The pledging of a property by a debtor as collateral to secure a loan. Hypothecation doesn't transfer possession or title...

Home Equity Loan

A type of high risk loan which is designed to facilitate lending secured by the borrower's equity in a home...

HEL

An abbreviation for home equity loan; a type of high risk loan which is designed to facilitate lending secured by...

Legal Interest

The interest (interest rate) that represents the highest interest rate that a bank or financial institution can legally charge on...

IO Loan

It stands for interest-only loan; a form of loan in which the borrower only pays interest over the loan's life,...