What Is the Private Sector Adjustment Factor (PSAF)? The term private sector adjustment factor (PSAF) refers to the method used by the Federal Reserve Board to calculate the costs associated with services provided to depository institutions as if they were provided by private banks. These services include checks and Automated Clearing House (ACH) among others.
What Is Privatization? Privatization occurs when a government-owned business, operation, or property becomes owned by a private, non-government party. Privatization may also describe a transition that takes a company from being publicly traded to becoming privately held. This is referred to as corporate privatization. Key Takeaways Privatization describes the process by which a piece of
What Is Privileged Communication? Privileged communication is an interaction between two parties in which the law recognizes a private, protected relationship. Whatever is communicated between the two parties must remain confidential, and the law cannot force their disclosure. Even disclosure by one of the parties comes with legal limitations. There are, however, exceptions that can
What is Prize Indemnity Insurance Prize indemnity insurance is insurance for promotional events in which companies award attractive and expensive prizes to winners. They help offload the substantial risk involved in having to pay out the reward. Typical prizes at such events are cars, vacations or large cash payouts. Prize indemnity insurance is also known
What Is a Probability Distribution? A probability distribution is a statistical function that describes all the possible values and likelihoods that a random variable can take within a given range. This range will be bounded between the minimum and maximum possible values, but precisely where the possible value is likely to be plotted on the
What Is Probable Maximum Loss (PML)? Probable maximum loss (PML) is the maximum loss that an insurer would be expected to incur on a policy. Probable maximum loss (PML) is most often associated with insurance policies on property, such as fire insurance or flood insurance. The probable maximum loss (PML) represents the worst-case scenario for
What Are Probable Reserves? Probable reserves are crude oil reserves calculated to be at least 50 percent likely to be recovered through drilling. Recovery probabilities help estimate the present and future value of assets owned or operated by firms in the oil and gas sector. Key Takeaways Probable reserves are oil deposits with at least
What Is Probate? Probate is the process completed when a decedent leaves assets to distribute, such as bank accounts, real estate, and financial investments. Probate is the general administration of a deceased person’s will or the estate of a deceased person without a will. An executor is commonly named in the will or an administrator, if
What Is Probate Court? Probate court is a segment of the judicial system that oversees the execution of wills as well as the handling of estates, conservatorships, and guardianships. Probate court also handles the commitment of a person with psychiatric disabilities to institutions designed to help them. Probate court ensures that a will is executed
What Is a Problem Loan? In the banking and credit markets, a problem loan is one of two things: A commercial loan that is at least 90 days past due or a consumer loan that is at least 180 days past due. In either case, this type of loan is also referred to as a
