The Basel Accords are three versions, with numerous amendments, of international banking agreements developed by the Basel Committee. They seek to establish a stable international banking system by specifying capital requirements, internal measures of risk assessment, bank supervisory review standards, and market discipline through the disclosure of available capital, risk exposure, and assessments as a measure of the institution's capital adequacy.
In financial contexts, a correspondent refers to a financial organization that regularly performs services on behalf of another institution within markets that the latter finds inaccessible. This commonly involves a depository relationship to cover expenses and streamline transactions.
An Edge Act Corporation is a subsidiary of a U.S. bank that can offer international banking services across state and national borders, under the authority of the Federal Reserve.
Eurobanking refers to the acceptance of deposits and the extension of loans denominated in currencies other than the currency of the country where the bank is located.
A Eurodollar Certificate of Deposit (CD) is a CD issued by banks outside the United States, primarily in Europe, where both the interest and principal are paid in U.S. dollars. Eurodollar CDs usually have minimum denominations of $100,000 and maturities of less than two years.
The Federal Reserve System (Fed) is the central banking system of the United States, created by the Federal Reserve Act of 1913. It regulates the nation's monetary policy, oversees the cost and supply of money, and supervises international banking through agreements with other central banks.
An International Banking Facility (IBF) is a banking service that allows U.S. banks to offer international banking services without being subject to certain domestic regulations. This facilitates eurocurrency lending activities and provides advantages akin to offshore banking.
The London Interbank Offered Rate (LIBOR) is the interest rate that the most creditworthy international banks dealing in Eurodollars charge each other for large loans. Serving as the equivalent of the federal funds rate, LIBOR is often used as a base rate for other large Eurodollar loans issued to less creditworthy corporate and government borrowers.
A Money Center Bank is one of the largest banks located in major financial hubs around the world, including cities like New York, Chicago, San Francisco, Los Angeles, London, Paris, and Tokyo. These banks wield significant national and international influence.
Understanding remittance, its types and examples, frequently asked questions, related terms, references, and further readings.
Telegraphic Transfers (TT) are methods of transmitting money overseas by means of electronic transfer between banks. The transfer is usually made in the currency of the payee and may be credited to their account at a specified bank or paid in cash to the payee upon application and identification.
