BANKING

The balance of trade is a fundamental concept in international trade that measures the difference between a country’s exports and imports of goods and services over a particular period. It is an important indicator of a country’s overall economic health and its ability to compete in the global market. Components of Balance of Trade: Balance […]

Definition: An overdraft occurs when a bank customer exceeds their available funds in their account and attempts to withdraw or use more money than they have. Causes: Fees: Banks typically charge fees for overdrafts, which can vary depending on the bank and its policies. Some common overdraft fees include: Impact: Overdrafts can have a negative […]

Definition: A trade union is a labor union that represents a specific trade or occupation. It is a voluntary association of workers in a particular industry who join together to advance their common interests and to protect their rights. Key Features: Examples: Benefits: Challenges: Overall, trade unions play a significant role in representing and advocating […]

A bank failure occurs when a bank is unable to meet its financial obligations to its depositors and creditors. This can be caused by a variety of factors, including: Impact of Bank Failure: Government Response to Bank Failure: Recovery from Bank Failure: FAQs

Wholesale banking is a type of banking that focuses on providing financial services to other banks, financial institutions, and large corporations rather than retail customers. The primary activities of wholesale banks include: 1. money market Lending:– Providing loans to other banks and financial institutions.- Dealing in Treasury bills, repurchase agreements, and other money market instruments. […]

Islamic banking is a financial system that adheres to Islamic principles, which emphasize ethical values, justice, and compassion. It prohibits the charging of interest, gambling, and other practices deemed haram (forbidden) in Islam. Instead of interest, Islamic banks typically rely on profit-sharing arrangements, known as Musharaka, or Mudarabah. Key Principles of Islamic Banking: Types of […]

Cross-border financing refers to the process of borrowing and lending money between individuals, businesses, and governments across national borders. It involves various financial instruments and channels, including loans, bonds, trade finance, and foreign direct investment (FDI). Types of Cross-Border Financing: Key Considerations: Benefits: Challenges: Conclusion: Cross-border financing is a complex process that involves various factors […]

A non-participating policy is a life insurance policy where the insured does not have the option to participate in any of the company’s profit-sharing plans. Instead, the insured’s premium payments are used solely to cover the costs of the policy and any death benefits that may be payable. Key Features: Benefits: Drawbacks: Suitability: Non-participating policies […]

P2P lending, also known as peer-to-peer lending, is a type of lending that connects borrowers with lenders directly, bypassing traditional banks. Instead of borrowing from a single bank, borrowers can access funds from a pool of individual investors. Here’s a breakdown of the key features of P2P lending: Participants:- Borrowers: Individuals seeking loans for various […]

Bancassurance Bancassurance is a distribution channel model in which banks offer a range of insurance products through their own branches or online platforms, often in partnership with insurance companies. Key Features of Bancassurance: Cross-selling: Banks leverage their existing customer relationships to sell insurance products to their clients. Integrated services: Banks offer a seamless customer experience […]