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Run Problem

The problem (bank run) that a bank encounters when all or majority of clients rush to claim back their deposits....

Cross-Age Rule

A banking rule that defines the precautionary situation in which a customer gets tainted by cross-aged balances- i.e., his/ her...

Taint Rule

A banking rule that defines the precautionary situation in which a customer gets tainted- i.e., his/ her loan balance is...

Bank Run

A situation that arises when all depositors or a majority of depositors demand their money at the same time, or...

Liquidity Run

A situation that a bank or financial institution faces when its liquidity drops down due to an irregular increase in...

Loan

An amount of money that is lent by a person or an entity to others (including individuals, entities, etc.) The...

Denomination Transformation

A type of transformation that is performed by banks and other depositary institutions (financial intermediaries) whereby the small amounts deposited with them are transformed...

LADG

It stands for leverage-adjusted duration gap ; a duration gap measure that takes into account a bank's overall exposure to interest rate...

Leverage-Adjusted Duration Gap

A duration gap measure that takes into account a bank's overall exposure to interest rate risk. It is calculated as the difference between...

Loan Sharking

The practice of lending money to desperate people at unfairly high interest rates. More specifically, loan sharking involves charging interest...