What Is a Bank Giro Transfer? A bank giro transfer is a method of transferring money by instructing a bank to directly transfer funds from one bank account to another without the use of physical checks. Bank giro transfers are predominantly used in European countries, such as Germany, Austria, the Netherlands, and Sweden, as well
What Is a Bank Guarantee? A bank guarantee is a type of financial backstop offered by a lending institution. The bank guarantee means that the lender will ensure that the liabilities of a debtor will be met. In other words, if the debtor fails to settle a debt, the bank will cover it. A bank
What Is a Bank Holiday? A bank holiday is a business day during which financial institutions are closed. Bank holidays are most relevant for physical branch locations because many online banking services continue to operate. The dates are major federal holidays when most financial institutions—stock exchanges, brokerage firms, and traders—also take the day off. Although
What Is the Banking and Securities Industry Committee (BASIC)? The Banking and Securities Industry Committee (BASIC) was established in 1970 to standardize, automate, and streamline the processing of stock certificates and options. This committee sought to uphold uniform rules and regulations regarding the trading and settlement of securities. The Banking and Securities Industry Committee attempted
What Is a State Banking Department? The term state banking department refers to a state-specific regulatory body that oversees the operations of financial institutions within its jurisdiction. A state banking department’s primary responsibility is to ensure that the financial system is accessible, stable, and safe for all consumers. The agency also regulates and licenses non-traditional
What Is Bank Insurance? Bank insurance is a guarantee by the Federal Deposit Insurance Corporation (FDIC) of deposits in a bank. Created in 1989, the Bank Insurance Fund is the federal fund used to insure bank deposits of national and state banks that are members of the federal reserve system. Bank insurance helps protect individuals who
What Is the Bank Insurance Fund (BIF) The Bank Insurance Fund (BIF) was a unit of the Federal Deposit Insurance Corporation (FDIC) that provided insurance protection for banks that were not classified as a savings and loan association. The BIF was created as a result of the savings and loan crisis that occurred in the
What Is a Bank Lending Survey? A bank lending survey is a questionnaire circulated by a country’s central banking authority to help clarify its understanding of the overall lending environment. Surveys are typically circulated quarterly, but may be circulated more or less frequently depending on a central bank’s role in regulating lending and the overall
Bank Letter of Credit Policy: An Overview A bank letter of credit policy is a guarantee by a U.S. bank that a buyer in a foreign transaction will be paid. This type of credit letter has become a routine part of international transactions, which often involve shipping large quantities of goods with a promise of
What Is a Balanced Investment Strategy? A balanced investment strategy combines asset classes in a portfolio in an attempt to balance risk and return. Typically, balanced portfolios are divided between stocks and bonds, either equally or with a slight tilt, such as 60% in stocks and 40% in bonds. Balanced portfolios may also maintain a
