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Banking

Maturity Transformation

A type of transformation whereby a bank or any similar institutions takes advantage of the upward slope of the yield...

Credit Allocation

The financing (credit) which a bank or financial institution (FI) provides for particular sectors of the economy, such as small...

Self-Liquidating Loan

A short-term loan that is extended by a bank to a customer or business so that it is used to...

Financial Promotion

An effort which is exerted by a bank or financial institution in order to promote business or products. Financial promotions...

Flight To Liquidity

A reallocation tactic whereby banks restructure and rebalance their portfolios toward cash reserves and more liquid investments, especially in fixed-income...

Flight To Quality

At an individual bank's level, it refers to a reallocation tactic whereby banks encountering increased market interest rates tend to...

FTQ

It stands for flight to quality; at an individual bank's level, it refers to a reallocation tactic whereby banks encountering...

Flight To Currency

A situation that occurs when a wide number of depositors lose faith in all banks, or more specifically, all banks...

Information Transformation

A type of transformation whereby banks aim to mitigate the effect of information asymmetry in their relationship with their clients....

Asset Transformation

A type of transformation whereby banks use deposits (mobilized funds) to generate revenue by pooling deposits to make loans. More...