What Is the International Banking Act of 1978? The International Banking Act of 1978 put all American branches and agencies of foreign banks under the control of U.S. banking regulators. It allowed Federal Deposit Insurance Corporation (FDIC) insurance to be provided to these branches. It also required them to conform to U.S. banking regulations related
What Is the International Bank of Reconstruction and Development (IBRD)? The International Bank of Reconstruction and Development (IBRD) is a development bank administered by the World Bank. The IBRD offers financial products and policy advice to countries aiming to reduce poverty and promote sustainable development. The International Bank of Reconstruction and Development is a cooperative
What Is an International Bond? An international bond is a debt obligation that is issued in a country by a non-domestic entity. Generally, it is denominated in the currency of its issuer’s native country. Like other bonds, it pays interest at specific intervals and pays its principal amount back to bondholder at maturity. International bonds
What Is the International Energy Agency (IEA)? The International Energy Agency (IEA) is an international intergovernmental organization based in Paris that was established in 1974. Its stated mandate is to maintain the stability of the international oil supply, although its mission has expanded in recent years to emphasize the promotion of renewable energy sources. Key
What Is an International ETF? An international exchange-traded fund (ETF) is any ETF that invests specifically in foreign-based securities. The focus may be global, regional, or on a specific country and may hold equities or fixed-income securities. Key Takeaways International ETF is an exchange traded fund that specializes in foreign securities.An international ETF may track
What Is the International Federation Of Accountants (IFAC)? The International Federation of Accountants (IFAC) is a global organization representing the accounting profession. IFAC establishes and promotes international standards, and speaks for the profession on public policy issues. According to the IFAC website, the group serves the public interest through advocacy, development, and support for our
What Is the Interest Deduction? Interest deduction causes a reduction in taxable income. If a taxpayer or business pays interest, in certain cases the interest may be deducted from income subject to tax. Some examples of interest payments that can be deducted are: Interest payments for a mortgage on a rental property can also be
What Is an Interest Expense? An interest expense is the cost incurred by an entity for borrowed funds. Interest expense is a non-operating expense shown on the income statement. It represents interest payable on any borrowings—bonds, loans, convertible debt or lines of credit. It is essentially calculated as the interest rate times the outstanding principal amount
What Is Interest-On-Interest? Interest-on-interest, also referred to as ‘compound interest’, is the interest that is earned when interest payments are reinvested. Interest-on-interest is primarily used in the context of bonds, whose coupon payments are assumed to be re-invested and held until the bond is sold or matures. Key Takeaways Interest-on-interest, also referred to as ‘compound
What Is an Interest-Only ARM? An interest-only adjustable-rate mortgage (ARM) is a type of mortgage loan in which the borrower is only required to pay the interest portion owed each month for a certain period of time. During the interest-only period, only interest accrued each period must be paid, and a borrower is not required
