What are Exchange Rates? Foreign currency exchange rates measure one currency’s strength relative to another. A strong currency is considered to be one that is valuable, and this manifests itself when comparing its value to another currency. The strength of a currency depends on a number of factors such as its inflation rate, prevailing interest rates…
What are the Different Retail Bank Types? Broadly speaking, there are three main retail bank types. They are commercial banks, credit unions, and certain investment funds that offer retail banking services. All three retail bank types work toward providing similar banking services. These include checking accounts, savings accounts, mortgages, debit cards, credit cards, and personal loans….
What is an FHA Loan? FHA stands for the Federal Housing Administration. An FHA loan is a mortgage that is insured – or backed – by the federal agency. In other words, an FHA loan is a government-guaranteed mortgage. The loan enables individuals with lower credit scores to secure money to purchase a home. It…
What is a Mortgage? A mortgage is a type of loan secured by real property. Most people think of a mortgage as being drawn to purchase a property, but mortgage loans are also used to refinance properties that are already owned by the borrower. A mortgage drawn to support the acquisition or the refinancing of…
What Is Finance? Finance is defined as the management of money and includes activities such as investing, borrowing, lending, budgeting, saving, and forecasting. The financial system includes the circulation of money, the management of investments, and money lending. In businesses, the finance team is responsible for ensuring the company’s capital is adequate, that appropriate investments are made,…
What is Vendor Financing? Vendor financing refers to the lending of money by a vendor to a customer, who then uses the money to buy the vendor’s inventory or service. The arrangement takes the form of a deferred loan from the vendor, and it may involve the transfer of shares from the customer to the…
What is Common Equity Tier 1 (CET1)? Common Equity Tier 1 (CET1) is a component of Tier 1 Capital, and it encompasses ordinary shares and retained earnings. The implementation of CET1 started in 2014 as part of Basel III regulations relating to cushioning a local economy from a financial crisis. The Basel III accord introduced…
What are Fixed-Rate Loans? A fixed-rate loan is a type of loan where the interest rate remains unchanged for the entire term of the loan or for a part of the loan term. Most borrowers prefer fixed-rate loans for long-term loans since they can accurately predict future costs and monthly payments. For example, when taking…
What is Bank Credit Analysis Training? The bank credit analysis training equips students with the necessary skills to perform quantitative analysis of financial data to determine the creditworthiness of a borrower. The role of a bank credit analyst is crucial to the success of financial institutions. They help banks minimize debt risk by determining the…
What is Finance? Finance is defined as the providing of funding and management of money for individuals, businesses, and governments. The financial system includes the circulation of money, managing of investments, and lending of funds. In businesses, the finance team is responsible for ensuring the company has enough capital, that the appropriate investments are made,…
