The American Bankers Association (ABA) is a trade organization dedicated to serving the interests of commercial banks and other financial institutions. It is known for its advocacy, education, and publication efforts within the banking industry.
A commercial institution that takes deposits and extends loans, concerned mainly with making and receiving payments, accepting deposits, and making short-term loans to private individuals, companies, and other organizations.
Bank money refers to the currency created by commercial banks through the process of lending, utilizing the deposits they receive under a fractional reserve banking system.
The 'Big Four' refers to the four largest firms in the world of accountancy and auditing, which include Deloitte, Ernst & Young, KPMG, and PricewaterhouseCoopers, as well as the major commercial banks in the UK such as Barclays, Lloyds, HSBC, and Royal Bank of Scotland.
The Federal Deposit Insurance Corporation (FDIC) is an independent federal agency established in 1933 that insures deposits up to $250,000 in member commercial banks.
A finance house is an organization, often owned by commercial banks, that provides finance for hire-purchase or leasing agreements. These institutions play a pivotal role in consumer finance, enabling consumers to purchase expensive items through structured agreements while earning profits from the interest rate differential.
The Glass-Steagall Act of 1933 is a legislative measure passed by Congress that authorizes deposit insurance and prohibits commercial banks from owning brokerage firms. This act was largely repealed by the Financial Services Modernization Act of 1999.
An institutional lender is a financial intermediary who invests in loans and other securities on behalf of depositors or customers. These institutions are heavily regulated to mitigate risks and play a crucial role in both the primary and secondary markets for loans and securities.
Lombard Street is a key financial district located in the City of London, renowned for being the historical heart of the money market. It houses many commercial banks, bill brokers, and discount houses, with the Bank of England nearby.
The prime rate refers to the interest rate that commercial banks charge their most creditworthy customers, typically large corporations. It serves as a key benchmark in determining lending rates for consumers and businesses.
