What Is a Multibank Holding Company? A multibank holding company is a parent company that owns or controls two or more commercial banks. Because of their conglomerate status, they are subject to more regulations and oversight than standalone banks, but at the same time also have more options for raising capital due to their larger
What Is a Multi-Currency Note Facility? A multi-currency note facility is a credit facility that provides short- and medium-term euro note loans to borrowers. Loans may have various structures and include denominations in many different national currencies. These facilities may also provide payment services for companies who work within multiple currencies. Borrowers of multi-currency notes are typically large corporations that
What Is a Multi-Factor Model? A multi-factor model is a financial model that employs multiple factors in its calculations to explain market phenomena and/or equilibrium asset prices. A multi-factor model can be used to explain either an individual security or a portfolio of securities. It does so by comparing two or more factors to analyze
What Was the Multifiber Arrangement (MFA)? The term Multifiber Arrangement (MFA) referred to an international trade agreement involving clothing and textiles. The MFA was established in 1974 and imposed quotas on the amount of clothing and textile that developing countries could export to developed nations. The agreement was managed under the General Agreement of Tariffs
What Is a Multi-Index Option? A multi-index option is an outperformance option where the payoff is based on the relative performance of two indexes or other assets. The payoff from these exotic derivatives is determined by the change in the percentage price performance of one index or asset over another. They mainly trade in the
What Is the Multijurisdictional Disclosure System (MJDS)? The Multijurisdictional Disclosure System (MJDS) was adopted jointly in July 1991 by the U.S. Securities and Exchange Commission (SEC) and the Canadian Securities Administrators. The agreement makes it easier for companies on both sides of the border to list their stocks on exchanges in both countries. The SEC
What Is a Multilateral Development Bank (MDB)? A multilateral development bank (MDB) is an international financial institution chartered by two or more countries for the purpose of encouraging economic development in poorer nations. Multilateral development banks consist of member nations from developed and developing countries. MDBs provide loans and grants to member nations to fund
What Is the Multilateral Investment Guarantee Agency (MIGA)? The Multilateral Investment Guarantee Agency is an international institution that promotes investment in developing countries by offering political and economic risk insurance. By promoting foreign direct investment into developing countries, the agency aims to support economic growth, reduce poverty, and improve people’s lives. Key Takeaways The Multilateral Investment
What Is Multilateral Netting? Multilateral netting is a payment arrangement among multiple parties that transactions be summed, rather than settled individually. Multilateral netting can take place within a single organization or among two or more parties. The netting activity is centralized in one area, obviating the need for multiple invoicing and payment settlements among various
What Is Multilevel Marketing (MLM)? The term marketing (MLM) refers to a strategy used by some direct sales companies to sell products and services. MLM encourages existing members to promote and sell their offerings to other individuals and bring on new recruits into the business. Distributors are paid a percentage of their recruits’ sales. New recruits
