The 1913 U.S. legislation that created the current Federal Reserve System. The Federal Reserve Act intended to establish a form of economic stability…

Slang used to refer to an "unofficial rule" under which the banking industry once operated, which alludes to it being noncompetitive and simplistic.The…

A banking index that is made up of community banks and banking institutions. This index was created to represent the smaller institutions of the banking…

A unique number assigned by the American Bankers Association (ABA) that identifies a specific federal or state chartered bank or savings institution…

A term associated with making additional unscheduled payments on a loan at predetermined, or random intervals. Making additional unscheduled payments…

A written agreement from one entity to back the credit liability of another. This insurance is made without consideration, and adds strength to the creditworthiness…

An entity or person who agrees to back the credit obligations of another party in order to allow that party to obtain credit for which they would not…

A negotiable instrument that provides a third-party promise of payment in the case that the original borrower does not live up to the terms of the original…

A legal contract whereby two parties agree to discharge a tort claim, contract or other liability for an amount or based on terms that differ from the…

A banking term that refers to any activity that creates a debit or credit in an account. In a bank account, this would include deposits and withdrawals…

A process by which accounts are linked for the purpose of combining fees or to ease access for account holders. One form of account aggregation is householding…

1.  In cost accounting, this is a way for an accountant to analyze and measure the cost behavior of a firm. The process involves examining cost drivers…

An action taken by a bank or brokerage that prevents any transactions from occurring in the account. Typically, any open transactions will be cancelled…

All activity within an account, usually since inception. In a bank account, the account history includes all transactions initiated by the account holder…

Deposits that are delayed before being credited to an account, such as deposited checks that are drawn on foreign or out-of-state banks. A hold can also…

Any inquiry into an account, whether it be a depositary account or credit account. The inquiry can refer to past records, payments or other specific transactions…

The primary identifier for ownership of an account, whether a vendor account, a checking or brokerage account, or a loan account. An account number is…

A periodic summary of account activity with a beginning date and an ending date. The most commonly known are checking account statements, usually provided…

A process that allows paper checks received in payment for an account receivable to be electronically scanned and converted into an electronic payment…

A type of asset-financing arrangement in which a company uses its receivables - which is money owed by customers - as collateral in a financing agreement…

Loans, receivables or other debts that have virtually no chance of being paid. An account may become uncollectible for many reasons, including the debtor…

1. The firm which is purchasing a company in an acquisition. The acquirer is also known as a bidder.2. A financial institution or merchant bank (a merchant…

The capital that is obtained for the purpose of buying another business. Acquisition financing allows the user to meet their current acquisition aspirations…

A loan given to a company to purchase a specific asset or to be used for purposes that are laid out before the loan is granted. The acquisition loan is…

An asset that is used by a business in its daily or routine operations. Active assets can be tangible, such as buildings or equipment, or intangible…

A fee charged to cover the servicing costs of an account. An activity charge is triggered by an activity or event, and should follow a fee schedule outlined…

A method of calculating interest whereby the interest payable is determined at the beginning of a loan and added onto the principal. The sum of the interest…

Additional assets put up as collateral by a borrower against debt obligations. Additional collateral is used to lessen the risk to the lender. Creditors…

A finance/accounting method where costs are based on the amount(s) owing at the end of the current time period (once credits and payments are posted)…

A short-term loan made by a Federal Reserve Bank to a smaller commercial bank as needed to maintain reserve requirements and support short-term lending…

This refers to any advance made on a future commitment or payment. The term, advance funding, is used very broadly, ranging from  personal or project…

A percentage of collateral that determines the loan amount that a lender will issue a company. If a lender's advance rate is 85%, and a company has an…

An action that denies an individual or business credit, employment, insurance or other benefits. An adverse action is generally taken by a business or…

A type of loan classification in which the loan or other asset is considered, to some degree, to be impaired. It is an asset that is considered by bank…

A type of credit card issued by a bank and a charitable organization whose logo appears on the card. Each time the card is used, a percentage of the transaction…

A type of promise or contract which requires a party to do something. For example, a bond covenant that provides that the issuer will maintain adequate…

A financial institution comprising 53 African and 24 non-African countries which promotes economic and social progress in Africa through loans, equity…

A bank that acts in some capacity on behalf of another bank. It can mean any of three types of bank: (1) The bank in a loan syndicate that advises other…

A type of bank chartered by a state to engage in international banking. The bank “agrees” with the Federal Reserve Board (FRB) to limit its activities…

Any of several credit vehicles used to finance agricultural transactions, including loans, notes, bills of exchange and banker's acceptances. These types…

A set of rules for accomplishing a task in a certain number of steps. One common example is a recipe, which is an algorithm for preparing a meal. Algorithms…

A type of nontaxable certificate of deposit account with a duration of one year that was used primarily by thrift institutions to build funds for mortgage…

A valuation account used to estimate the portion of a bank’s loan portfolio that will ultimately be uncollectible. When a loan goes bad, the asset is…

A check or another negotiable instrument that has been materially and maliciously altered to effect a fraud. Usually either the name of the payee or the…

A broad category of mortgages that vary from fixed-rate, fully amortizing mortgages in terms of amortization schedules, interest rate structure and payment…

The American Bankers Association (ABA) is the largest banking trade association in the United States. Founded in 1875, the ABA represents banks of all…

Founded in 1907, the American Institute of Banking (AIB) is a provider of education and training to the banking industry. More than 150,000 bankers participate…

An organization that oversees the creation and dissemination of norms and standards in almost every U.S. business sector. ANSI is also actively involved…

The actual amount of credit made available to a borrower in a loan, as defined by Regulation Z disclosure requirements of the Truth In Lending Act. Specifically…