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what are the types of collateral securities used in bank lending
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What is used to describe the ability of government securities to be traded quickly and easily?
Liquidity is used to describe how quickly securities can be traded.
Which government securities are marketable and which non-marketable?
list the names of marketable securities used in Pakistan
What is Eurocurrency market?
Euro currency is the time deposit of money in an international bank located in a country different from the country that issued the currency. However the Eurocurrency market is the money market for borrowing or lending currencies that are in the form of deposits in an international bank and is used to execute domestic transaction.
Which of these terms is used to describe the ability of government securities to be traded quickly and easily?
liquid
What is the criteria used by world bank for measuring development?
Per capita income is used by world bank to measure development
What is securities lending?
Securities lending is a term that is used in borrowing loans where the borrower is to provide the lender with some form of collateral. This can be inform of government securities, documents for assets owned or letter of credit.
What is the difference between a primary security and a collateral security?
Primary security is the security someone offered to a bank to cover any risk the bank faces by granting a credit facility to a borrower. However, sometimes a single security may not be sufficient to cover the risk.Example: X bank grants a credit facility of $100 to a borrower called 'B,' and the borrower offers a bare land of $60 to the bank as the security. As you can see, the is bank facing a risk of $40.To cover up the balance of the credit risk, the borrower needs to offer another security. This new security is known as a collateral security.In that case, any security other than the primary security is a collateral security.It is very common that collateral securities are used to cover more than a single credit facility risk. Collateral securities are generally used to cover the balance of the risk, which is unable to cover by primary. However, the actual value of the collateral security is much higher than that. (Example: The borrower 'B' offers a commercial property of $60 as the collateral security of above loan. Now he can apply for another loan by offering the balance of $20 of the same property.)
What are Asset loans?
Asset-based lending is lending the money using an agreement secured by collateral. An asset loan or line of credit can be secured with equipment, inventory, accounts receivables or equipment, and Non-liquid assets such as equipment are preferable to liquid collateral. Asset-based lending is used by small and medium-sized businesses to meet immediate cash flow requirements.
What is SWIFT MT500?
MT 500 Instructs the registration, deregistration or reregistration of a financial instrument at the registration provider, typically the Transfer Agent or Registra of a security. This is often confused with the MT 500 "Series" which is a large and multi-use roup that includes purchases and sales (MT 502) of securities (MT 513 is a Trade Execution) as well as used for Collateral movments (MT505) and Securities Lending (MT515)
Can a bank add insurance to a loan?
Yes. If you do not have insurance on a car or house that is used as collateral for a loan the lending institution can take out insurance and charge you for it. The insurance THEY use will be far more expensive than what you can purchase privately, and will not protect YOUR interests, only theirs.
What is social lending used for?
Social lending is used to lend money to other peers around you without going through a bank or other financial institution in order to get the money. There are peer to peer lending websites in order to practice social lending.
How do you use Check as a collateral?
You cannot use check's are collateral. Either cash or bank deposit receipts or property can be used as collateral. Usually check's have a validity period of 6 months after which they are useless. So banks would not accept them as collateral
What are the distinctions between lending rate and interest rate of a bank?
Lending rate is the rate banks charge you to borrow money ...varies by type of collateral and risk of default. Mortgage loans with a house as collateral have lower rates than car loans which have lower rates than credit cards which have no collateral.Business loan rates are based on the creditworthiness of the borrower. "Prime rate is for best quality customers and others pay a % above prime depending on risk. Interest rates may refer to deposit rates which are paid by the bank to depositors, Can range from 0% on checking accounts to highest rate for large $ long term deposits. Lending rate and interest rate may be used interchangeably in some cases. Example:You ask a bank "what is my lending rate" or "what interest rate are you charging on my loan". In this case , they would be the same.
Can deed of trust be used as collateral for a Mississippi home equity loan?
No. A deed of trust demonstrates that a bank (or other lending institution) owns the property, however, the bank may not sell or pledge the property unless the borrower had not met loan conditions. Even if you are the lender (and, therefore, have been given a deed of trust), unless the people that you have made the loan to fail to meet obligations, you may not use the piece of paper or the underlying property as collateral.
In a bank cash loan can land be collateral?
Yes, land can be used as collateral. However, you will have to sign over your deeds, and provide information of how much the land is worth.
Can a bank repossess a vehicle that is not used for collateral?
If the bank has an order from a judge to liquidate or surrender property to satisfy a judgment, then yes, they may.
Can a bank holding an auto loan place a lien on your house in Illinois?
If ya used it as collateral.
