What Is a Banker Trojan? A Banker Trojan is a malicious computer program designed to gain access to confidential and/or material information stored or processed through online banking systems. This type of computer program is built with a backdoor, allowing outside parties to gain access to a computer, or it may instead copy a bank
What Is a Bank Examination? A bank examination is an evaluation of the financial health and resilience of a bank. Bank examinations are primarily concerned with the strength of the bank’s balance sheet. However, they also include a review of its regulatory compliance and internal controls. In the United States, examinations of national banks are
What Is Bank Failure? A bank failure is the closing of an insolvent bank by a federal or state regulator. The comptroller of the currency has the power to close national banks; banking commissioners in the respective states close state-chartered banks. Banks close when they are unable to meet their obligations to depositors and others.
What Are Bank Fees? The term bank fees refers to any charges imposed by financial institutions on their personal and business customers for account set-up, maintenance, and minor transactional services. These fees may be charged on a one-time or ongoing basis. Examples of bank fees range from account maintenance charges, withdrawal and transfer fees, automated
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
