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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...

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...

Bank Run

A situation that arises when all depositors or a majority of depositors demand their money at the same time, or...

Liquidity Run

A situation that a bank or financial institution faces when its liquidity drops down due to an irregular increase in...

Loan

An amount of money that is lent by a person or an entity to others (including individuals, entities, etc.) The...

Denomination Transformation

A type of transformation that is performed by banks and other depositary institutions (financial intermediaries) whereby the small amounts deposited with them are transformed...

LADG

It stands for leverage-adjusted duration gap ; a duration gap measure that takes into account a bank's overall exposure to interest rate...

Leverage-Adjusted Duration Gap

A duration gap measure that takes into account a bank's overall exposure to interest rate risk. It is calculated as the difference between...