What Is a Non-Amortizing Loan? A non-amortizing loan is a type of loan for which payments on the principal are made by lump sum. As a result, the value of the principal does not decrease at all over the life of the loan. Popular types of non-amortizing loans include interest-only loans or balloon-payment loans. Key
What Are Non-Borrowed Reserves? Non-borrowed reserves are bank reserves—that is, the funds a financial institution holds in cash—that are its own, and not money on loan from a central bank. Key Takeaways Non-borrowed reserves are funds a financial institution holds in cash; the funds are its own, and not money on loan from a central
What Is Noncallable? Noncallable security is a financial security that cannot be redeemed early by the issuer except with the payment of a penalty. The issuer of a noncallable bond subjects itself to interest rate risk because, at issuance, it locks in the interest rate it will pay until the security matures. If interest rates
What is a Non-Cash Charge? A non-cash charge is a write-down or accounting expense that does not involve a cash payment. They can represent meaningful changes to a company’s financial standing, weighing on earnings without affecting short-term capital in any way. Depreciation, amortization, depletion, stock-based compensation, and asset impairments are common non-cash charges that reduce earnings but not cash flows. Key
What Is a Non-Cash Item? A non-cash item has two different meanings. In banking, the term is used to describe a negotiable instrument, such as a check or bank draft, that is deposited but cannot be credited until it clears the issuer’s account. Alternatively, in accounting, a non-cash item refers to an expense listed on an
What Is the National Futures Association (NFA)? The National Futures Association (NFA) is an independent self-regulatory organization for the U.S. futures and derivatives markets. Designated by the Commodity Futures Trading Commission (CFTC) as a registered futures association, the NFA’s mandate is to safeguard the integrity of the derivatives markets, protect investors, and ensure that members
What Is a Non-Interest-Bearing Current Liability (NIBCL)? A non-interest-bearing current liability (NIBCL) is a category of expenses that an individual or a company must pay off within the calendar year but will not owe interest on. Taxes that do not include late penalties, as well as accounts payable, within the credit terms timelines or without
What Is a Niche Bank? Niche banks cater to and serve the needs of a certain demographic segment of the population. Niche banks typically target a specific market or type of customer and tailor a bank’s advertising, product mix, and operations to this target market’s preferences. Key Takeaways Niche banks are banks that have a
Any experienced or professional trader can tell you that trading can be a very profitable business. But there’s a great deal of risk involved, which means the chances of losing your money is just as great. It’s even harder to deal with when someone else loses your money—especially if they work for a big bank.
What Is a Note Issuance Facility (NIF)? A note issuance facility (NIF) is a credit arrangement usually provided by a syndicate of commercial banks. Its structure can be used for all kinds of businesses as a vehicle for supporting the issuance of credit notes. It is most commonly used by companies wishing to raise capital in the European
