Banks in one form or another have been subject to
Life insurance is a contract between an insurer and a
the following non exhaustive list of regulatory
provisions:1) restrictions on branching and new
entry;2) restrictions on pricing (interest rate
controls and other controls on prices or fees);3)
line-of-business restrictions and regulations on
ownership linkages among financial institutions;4)
restrictions on the portfolio of assets that banks
can hold (such as requirements to hold certain
types of securities or requirements and/or not to
hold other securities, including requirements not to
hold the control of non financial companies);5)
compulsory deposit insurance (or informal deposit
insurance, in the form of an expectation that
government will bail out depositors in the event of
insolvency);6) capital-adequacy requirements;7)
reserve requirements (requirements to hold a
certain quantity of the liabilities of the central
bank);8) requirements to direct credit to favored
sectors or enterprises (in the form of either formal
rules, or informal government pressure);9)
expectations that, in the event of difficulty, banks
will receive assistance in the form of “lender of last
resort”;10) special rules concerning mergers (not
always subject to a competition standard) or failing
banks (e.g., liquidation, winding up, insolvency,
composition or analogous proceedings in the
banking sector);
A savings institution, is a financial institution that
specializes in accepting savings, deposits, and
making mortgage and other
loans. An institution that primarily accepts consum
er savings
deposits and to make home mortgage loans.activitie
s:1.Store Money: Storing money for customers is
the most classic of banking activities. Traditional
banks, credit unions and savings institutions offer
this service.2. Facil itate Payments: Banks and
financial institutions enable their customers to pay
others. Customers are given checks.3. Loan
M oney: Lending money allows a bank or financial
institution to earn money, according to the FDIC
website. This for-profit service involves the bank
lending a sum of money to a customer and then
charging interest as the loaned amount is repaid
back to the institution
Disintermediation, in finance, is the withdrawal of
funds from intermediary financial institutions, such
as banks and savings and loan associations, to
invest them directly. Generally, disintermediation is
the process of removing the middleman or
intermediary from future transactions
1.
policyholder in which the insurer guarantees payment of
a death benefit to named beneficiaries upon the death of
the insured. The insurance company promises a death
benefit in consideration of the payment of premium by
the insured.2.Property and casualty ins: Property
insurance covers damages to or loss of property,
including homes, autos or luxury items such as jewelry
or computers. Casualty insurance is purchased to cover
legal expenses incurred from bodily injury or property
damage to someone else. Property and casualty
insurance is subdivided into two major lines: personal
and commercial.
Adverse selection refers generally to a situation where
sellers have information that buyers do not have, or vice
versa, about some aspect of product quality. In the case
of insurance, adverse selection is the tendency of those
in dangerous jobs or high-risk lifestyles to get life
insurance. To fight adverse selection, insurance
companies reduce exposure to large claims by limiting
coverage or raising premiums.
A negotiable order of withdrawal account is an interest-
earning bank account. A customer with such an account
is permitted to write drafts against money held on
deposit. A negotiable order of withdrawal account is
also known as a "NOW account"
. A regional bank is a depository institution, i.e. a bank, savings
and loan, or credit union, which is larger than a community
bank, which operates below the state level, but smaller than
a money center bank, which operates either nationally or
internationally. A community bank is a depository
institution that is typically locally owned and operated.
Community banks tend to focus on the needs of the
businesses and families where the bank holds branches
a  foreign exchange spot transaction, also known as FX
spot, is an agreement between two parties to buy one
currency against selling another currency at an agreed
price for settlement on the spot date. nd
offices. The forward exchange rate (also referred to
as forward rate or forward price) is the exchange rate at
which a bank agrees to exchange one currency for
another at a future date when it enters into a forward
contract with an investor