What is Accountability? Accountability is the concept of answerability by an individual or a department for the performance or outcomes of specific activities. Essentially, the accountable party is responsible for the execution of the desired role. The principal party delegates roles to other parties but remains liable if an action is not executed well or…
What is a Bio? A bio is a detailed description of someone’s life, professional background, education history, achievements, and skill set. Unlike a curriculum vitae, a bio presents a person’s life by highlighting important aspects such as their unique skill set, details of their professional experience, notable projects they are involved in, and an analysis…
What is the Depository Trust and Clearing Corporation (DTCC)? The Depository Trust and Clearing Corporation (DTCC) is a US-based corporation that acts as a centralized clearing and settlement company for different asset classes. It provides its market participants with a range of settlement services to facilitate obligations emanating from their trading activities in various investment…
What are Business Metrics? Business metrics quantify a business process or characteristic of the performance of a business process. They track the performance of business processes in various areas, such as finance, marketing, human resources, information technology, operations, production, investment, and other areas. Business metrics can also be categorized as performance metrics, which…
What is a Monetarist? The term monetarist is used to refer to an economist who values the theory that the overall money supply plays a primary role in affecting the demand in an economy. Furthermore, a monetarist believes that the regulation of the money supply can impact the performance of an economy. The foundation of…
What is a Mortgagee? A mortgagee is an individual or entity that lends money to a borrower for the purchase of real estate. In short, the mortgagee is the lender. Mortgage financing is commonly used all over the world, as people use it to finance the purchase of a house, office, or real estate property…
What are Stocks, Bonds, and Mutual Funds? Stocks, bonds, and mutual funds are well-known and powerful components of a diversified portfolio. To achieve desired returns to accomplish goals, it is extremely important to make sure there are different types of investments in a portfolio. What is a Stock? When an investor buys a stock, part…
What is Net Interest Income? Net interest income is defined as the difference between interest revenues and interest expenses. For financial institutions, interest revenues represent the interest payments the bank receives on their interest-bearing assets, while interest expenses are the cost of servicing interest payments to customers on their deposits. What Type of Assets Generate…
What is the Earnings Credit Rate (ECR)? The earnings credit rate (ECR) is the interest paid by banks on the deposits of customers. Banks apply the ECR on balances that depositors leave in their non-interest-yielding accounts. The amount calculated after applying the ECR is used to credit service fees. Banks usually peg the ECR to the…
What is Earnings Management? Earnings management is a practice followed by the management of a company to influence the earnings reported in financial statements. It is executed to match a set target and is different from managing the underlying business of the company. An earnings management strategy uses accounting methods to present an excessively positive…
