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Banking

Overnight Interbank Loan

An interbank loan that is extended over a short-term and for an interest rate quoted for overnight lending. It is...

LVR

Loan to value ratio; a ratio that relates the amount borrowed (a loan amount) to the value of the asset...

LTV Ratio

Loan to value ratio; a ratio that relates the amount borrowed (a loan amount) to the value of the asset...

Loan-To-Value Ratio

A ratio that relates the amount borrowed (a loan amount) to the value of the asset used as collateral. It...

Prime Lending Rate

The short-term interest rate that is charged by banks to their most creditworthy, financially sound customers, i.e. customers who have...

Escrow Account

An account that is established by a lender or an intermediary bank to hold separate funds for the purpose of...

Base Rate

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

Run Problem

The problem (bank run) that a bank encounters when all or majority of clients rush to claim back their deposits....

Cross-Age Rule

A banking rule that defines the precautionary situation in which a customer gets tainted by cross-aged balances- i.e., his/ her...

Taint Rule

A banking rule that defines the precautionary situation in which a customer gets tainted- i.e., his/ her loan balance is...