The automatic transfer of funds is a service that allows customers to automatically transfer funds from one account to another on a regular basis. This can be useful for customers who want to make sure that they always have enough money in their account to cover their expenses, or for customers who want to save … Read more
Chain banking is a system in which a group of banks are all owned by the same parent company. This can lead to a number of advantages, such as increased efficiency and economies of scale. It can also lead to some risks, such as a higher level of concentration in the banking sector. What are … Read more
A boutique firm is a small, independent financial services firm that provides customized investment, financial planning, and other services to its clients. Boutique firms typically have a limited number of employees and a more intimate relationship with their clients than larger financial firms. Is Wells Fargo a boutique? No, Wells Fargo is not a boutique. … Read more
A demand draft is a type of check that is drawn on a bank and payable to a specific person or entity. The person or entity that initiates the demand draft is known as the drawer, and the person or entity that the demand draft is made out to is known as the payee. When … Read more
The Uniform Bank Performance Report (UBPR) is an analytical tool used by bank supervisors, examiners, and analysts to evaluate a bank’s financial condition, performance, and risk profile. The report is prepared using information from the bank’s Call Report and other data sources. The UBPR is organized into four sections: (1) a profile of the bank, … Read more
The Community Reinvestment Act (CRA) was enacted in 1977 to encourage depository institutions to help meet the credit needs of the communities in which they operate, consistent with safe and sound operations. The Act is intended to affirm that depository institutions have an affirmative obligation to help meet the credit needs of the local communities … Read more
The net interest rate spread is the difference between the average yield on loans and the average yield on deposits. The spread is used to cover the costs of running a bank, including employee salaries, building costs, and regulatory compliance. The spread is also a source of revenue for the bank. The average yield on … Read more
Uncollected funds are funds that have been deposited into a bank account but have not yet been cleared by the bank. This can happen for a variety of reasons, but typically it is because the check or other deposit instrument has not yet been presented to the bank for payment. When this happens, the funds … Read more
A bank of first deposit is a bank where a customer first deposits their paycheck or other funds. The bank may also be the payer on the check or may simply be the bank where the account is held. The bank of first deposit is generally the bank where the account is held and is … Read more
Roll rate definition: The roll rate is the rate at which a bank will roll over a loan. This is the rate that the borrower will pay to the bank for the privilege of borrowing money. What is STD SMA sub DBT LSS? The full name for this banking term is “standard settlement maturity agreement … Read more
