A floating-rate loan, unlike fixed-rate loans, is a type of loan where the interest rate fluctuates over the loan's term, usually in relation to a benchmark interest rate such as the London Inter Bank Offered Rate (LIBOR).
The minimum interest rate on a loan or other obligation, as set in advance by the lender. Compare cap. See also collar.
The maximum amount a merchant can charge without obtaining authorization from the card issuer, known as the floor limit, is a critical concept in payment processing.
An in-depth exploration of flotation costs, including definitions, types, historical context, calculations, and their importance in financial management.
The Federal National Mortgage Association (FNMA), commonly known as Fannie Mae, is a government-sponsored enterprise that facilitates mortgage financing by purchasing mortgage loans from lenders.
Forbearance refers to the leniency or temporary postponement given by a lender to a borrower facing difficulties in meeting their repayment obligations. Instead of proceeding with foreclosure, the lender may choose to renegotiate the loan terms.
An in-depth exploration of foreign banks, their historical context, operations, significance, and more.
Foreign Branches are extensions of U.S. banks operating in other countries, regulated by local authorities, and participating in local financial markets.
An in-depth look at Foreign Exchange, its historical context, types, key events, detailed explanations, and its importance in the global economy.
A comprehensive overview of foreign exchange reserves, their importance, historical context, types, key events, and much more.
A foreign exchange swap is a financial instrument that involves the exchange of principal and interest payments in one currency for another. It is primarily used for short-term financing and liquidity management.
Forex Loan is a type of loan denominated in a foreign currency. Explore the types, benefits, risks, and practical examples of Forex Loans.
Forfaiting is a financial practice where an exporter sells their receivables to a forfaiter at a discount, receiving immediate payment without recourse.
Form U5 is a regulatory form used to terminate the registration of individuals from financial firms in the securities industry.
An in-depth look into the structure, benefits, and regulatory aspects of Formal Banking, highlighting the contrasts with the hawala system.
The Forward Forward Rate represents the rate of interest that will apply to a loan or deposit beginning on a future date and maturing on a second future date. It is essential in financial planning and risk management.
A comprehensive exploration of Forward Guidance, a monetary policy tool employed by central banks to communicate their future policy intentions.
Forward Margin, also referred to as Forward Points, represents the difference between the spot rate and the forward rate in foreign exchange trading.
A comprehensive guide to Forward Rate Agreements (FRA), including historical context, types, key events, explanations, mathematical models, charts, applicability, examples, related terms, and more.
Forward Rate Agreements (FRAs) are financial contracts that determine the interest rates to be paid or received on an obligation beginning at a future start date. These contracts are used by entities to hedge against interest rate fluctuations.
A detailed exploration of the Forward-Exchange Market, its historical context, importance, applicability, types, key events, and examples.
A comprehensive guide to Forward-Rate Agreements (FRAs), covering historical context, types, key events, formulas, importance, applicability, examples, and more.
A comprehensive overview of Forward-Rate Agreements (FRAs), including historical context, types, key events, detailed explanations, mathematical models, and applicability.
Fractional Reserve Banking is a system where banks hold a minimum reserve of cash or liquid assets equal to a fixed percentage of their deposit liabilities, aimed at safeguarding the ability to meet obligations.
A comprehensive overview of Friendly Societies, non-profit-making institutions in the UK that offer small savings and life insurance to members.
A detailed exploration of the front-end fee, its historical context, types, and importance in loan agreements, along with examples, related terms, and key considerations.
Front-Loaded Interest refers to a financing mechanism where interest payments are weighted more heavily at the beginning of the loan term, making the initial payments comprise mostly interest and less principal.
An in-depth overview of the Financial Services Action Plan (FSAP), its historical context, key components, implications, and more.
A comprehensive encyclopedia article detailing the history, function, and dissolution of the Federal Savings and Loan Insurance Corporation (FSLIC).
Full Amortization Term refers to the complete duration over which a loan is amortized, ending with no balance remaining. It is a critical concept in finance and loan structuring to ensure that the principal, along with interest, is fully paid off.
A detailed explanation of a fully amortizing loan, its structure, types, benefits, and drawbacks, along with examples and FAQs.
Fully amortizing loans are loans that have equal payments throughout the term covering both principal and interest, ensuring that the loan is paid off by the end of the term.
A comprehensive look at 'Fully Banked' individuals who primarily use traditional banking services, with better access to financial products, lower fees, and enhanced credit opportunities.
Functional Regulation is a principle established by the Gramm-Leach-Bliley Act (GLBA), ensuring that different aspects of financial services are regulated by the appropriate authorities.
An in-depth exploration of Fund Transfer Pricing (FTP), its historical context, types, key events, formulas, importance, applicability, and related terms, providing comprehensive insights for banking and finance professionals.
Understanding the Funding Fee: This comprehensive guide covers what funding fees are, their types, how they are calculated, and their implications for borrowers.
A comprehensive insight into Funding Spread, an adjustment reflecting the cost specific to a business unit in internal funding rates.
An in-depth exploration of fungibles, covering their definition, types, significance in various industries, mathematical models, related terms, historical context, and more.
Gap Financing refers to a short-term loan used to cover an immediate funding requirement until long-term financing is secured.
The Garn-St Germain Depository Institutions Act of 1982 is legislation that further deregulated savings and loan associations and implemented measures to improve the financial stability of the housing sector.
The Gross Debt Service (GDS) Ratio is a measure used in real estate and mortgage lending to evaluate the proportion of a borrower's income that is dedicated to housing-related expenses.
GE Capital, the financial services unit of General Electric (GE), provides commercial lending and leasing, as well as a range of financial services for consumers, retailers, and businesses worldwide.
Comprehensive coverage of the Gilt Repo Market, established by the Bank of England in 1996, and its significance in monetary policy and banking system liquidity.
An in-depth look at the Government National Mortgage Association (Ginnie Mae), its historical context, key events, importance, and role in the financial markets.
An in-depth exploration of the GIRO banking system, its history, functionalities, and importance in modern financial systems, along with its social security connotation in the UK.
An in-depth look at the GIRO system, its history, types, key events, functionality, importance, applicability, related terms, and more.
The Glass-Steagall Act, a landmark piece of legislation enacted in 1933, aimed to separate commercial and investment banking activities, shaping the financial landscape until its partial repeal in 1999. Learn about its significance, impact, and historical context.
The Glass-Steagall Act was a US law enacted in 1933 that separated commercial and investment banking. It aimed to prevent excessive risk-taking in the banking sector, believed to have contributed to the Great Depression. The partial repeal of this act in 1999 is considered a factor leading to the 2008 financial crisis.
An in-depth exploration of the role, importance, and intricacies of global custodians in the financial system.
Global Custody involves safekeeping and managing securities held on behalf of clients across multiple markets and countries. It encompasses valuation, reporting, trade settlement, tax accounting, and more.
The Global Financial Stability Report (GFSR) is a comprehensive analysis of the current state of global financial markets, produced semiannually by the International Monetary Fund (IMF).
Comprehensive overview of Goldman Sachs, a leading global investment banking, securities, and investment management firm.
The Good Delivery List comprises refineries approved by the LBMA to meet specific quality standards, ensuring consistency and reliability in the trading of precious metals.
An in-depth exploration of the Government National Mortgage Association (GNMA), also known as 'Ginnie Mae,' its historical context, importance, applicability, related terms, and more.
Understanding the grace and notice provision in loan agreements and its significance in preventing defaults due to administrative mistakes.
An exploration of grants as non-repayable financial support, including different types, special considerations, examples, historical context, applicability, comparisons, and related terms.
Greenlining refers to initiatives aimed at increasing access to financial services, such as lending and investments, in historically underserved communities.
Gross settlement involves the transfer of funds for each individual transaction separately, as opposed to aggregating them.
A comprehensive guide to understanding guaranteed bonds, their history, types, importance, and application in the financial markets.
Understanding the reduction applied to the value of collateral to account for risk in financial transactions.
A comprehensive analysis of hard currency, its historical context, key events, importance, applicability, and related concepts in the realm of global finance.
An in-depth exploration of Hard Loans, including historical context, key characteristics, importance, examples, and related financial terms.
An exploration of high-street banks, their role, types, history, and importance in the financial system.
Discover what a High-Yield Savings Account is, its benefits, limitations, and why it can be a smart choice for your savings. Learn the differences, compared to standard accounts, and how to maximize your earnings.
A hold refers to the practice of temporarily preventing access to deposited funds until verification is complete.
An in-depth exploration of the Hold Period, the time frame banks hold deposited funds before making them available, including historical context, types, key events, explanations, and more.
A Holder is the person in possession of a negotiable instrument, such as a check or promissory note, who is entitled to receive the amount stated on the instrument. This entry explores the concept, types, legal considerations, and practical examples.
A thorough exploration of Holding Fee, particularly in asset management contexts. Understand its historical context, key concepts, importance, and more.
An in-depth look at Home Equity Line of Credit (HELOC), including its definition, types, benefits, drawbacks, applicability, and comparisons to other financial products.
Hundi refers to an informal financial instrument used for transferring money, predominantly in South Asia. Originating centuries ago, it remains a key conduit for remittances and trade, operating outside formal banking channels.
A comprehensive look at hypothecation, a financial mechanism where goods are pledged as collateral for loans, including its types, applications, historical context, and significance in modern finance.
A detailed examination of hypothecation, its historical context, applications, and significance in finance and taxation.
An in-depth look at IBAN, its historical context, structure, importance in international banking, and practical applications.
Detailed explanation of IBAN, an international system for identifying bank accounts across national borders, including its structure, usage, historical context, and more.
An in-depth exploration of IBOR, its historical context, types, key events, and importance in global finance.
The International Bank for Reconstruction and Development (IBRD), a vital part of the World Bank Group, provides loans and financial services to middle-income and creditworthy low-income countries.
An in-depth look at the International Capital Market Association (ICMA), its role, structure, key events, and impact on global capital markets.
An Independent Financial Adviser (IFA) is a professional who provides impartial financial advice to clients based on their individual needs and circumstances.
Ijara, a form of Islamic leasing, allows the lessee to use an asset for a fixed period in exchange for regular payments, often ending with the option to purchase the asset.
A comprehensive exploration of illiquidity, its implications in financial markets, and strategies to manage liquidity risks.
An Image Replacement Document (IRD) is a term used for a substitute cheque, which is a digital reproduction of the original paper check that is used for processing transactions.
Immediate Payment Service (IMPS) is a 24/7 interbank electronic fund transfer service that enables instant real-time transactions.
An in-depth examination of impaired loans, including their definitions, types, significance, examples, historical context, and related terms.
Explore the distinctions between impaired loans and bad loans, their impact on financial statements, and their relevance in finance and banking.
A detailed exploration of the differences between impaired loans and defaulted loans, their financial implications, and management strategies.
A comprehensive guide on inactive accounts in the financial sector, including definitions, types, importance, and related terms.
An in-depth look at income-driven repayment plans, which adjust monthly payments based on the borrower's income and family size, often considered when deferment is not applicable.
An Independent Financial Adviser (IFA) is a professional who provides unbiased financial advice on a wide range of financial products from various providers without any affiliation or restriction.
A comprehensive guide to understanding Index Rates, their historical context, types, key events, mathematical models, and significance in Adjustable-Rate Mortgages (ARMs).
The Indian Rupee (INR) is the official currency of India, with a rich historical context and modern economic significance.
An in-depth look at Individual Savings Accounts (ISAs), their history, types, and impact on personal finance in the UK.
Indorsement refers to a signature or statement of consent written on a negotiable instrument, used primarily in legal contexts. Learn about its types, history, significance, and applicability.
An in-depth exploration of the role, responsibilities, and significance of an indorser in financial transactions, including historical context, types, key events, mathematical models, and relevant examples.
An Innovative Finance ISA (Individual Savings Account) is designed to hold peer-to-peer lending and other types of debt-based securities. This article delves into its historical context, types, key events, importance, applicability, related terms, comparisons, and more.
Insolvency occurs when an entity's liabilities exceed its assets, and it cannot meet its debt obligations as they become due.
Installment billing involves dividing the total amount of a purchase into multiple smaller payments over time, unlike deferred billing.
Installment Credit involves borrowing a specific amount of money to be paid back over time through regular, scheduled payments including interest.
An Installment Loan is a type of loan repaid over a period of time with a set number of scheduled payments, typically used for large purchases or debt consolidation.
Installment Payment refers to regular fixed payments made over a period of time, typically not conditional on specific performance metrics. This concept is widely used in various financial contexts, such as loans, mortgages, and installment plans for products and services.
Installment payments are a financial arrangement where purchases are paid off in scheduled payments over a set period, usually with interest.
