banking Flashcards
This is the term for how banks make money.
Net Interest Income
Term for the amount of loan a portfolio can support.
Lending Value or Borrowil
Base
This is the dual mandate of the Federal Reserve.
maximum employment and price stabilization
These agencies provide oversight to the banking system.
Federal Reserve, OCC, FDIC
This bank had a run on dThis bank had a run on deposit recently
SVB
Residential mortgages are bundled and sold in the secondary market are called.
MBS
These groups are considered financial intermediaries.
Hedge Funds, Private Equity, or Banks
This is the dual mandate of the Federal Reserve.
maximum employment and price stabilization
This is how much each depositor receives in insurance for their deposit.
250,000$
True or false. If a bank is illiquid, automatically insolvent.
False
Reserves required for primary residence
10%
This occurs when there isn’t enough collateral to support a loan
MARGIN CALL
These are the types of reasons for using a SBL
Access to liquidity
True or False. This is the most expensive type of lending.
False
This activity is done every year fol
GSIB banks.
Stress Testing
DTI
Debt to Income
The tools the Federal Reserve uses to influence the economy.
-increase/decrease Fed Fund Rate,
-increase/decrease Discount Rate,
-Purchase Treasuries
The Federal Reserve does this to tighten the money supply.
Sell Treasuries/ open market transactions
This is what an Adjustable Rate Mortgage adjusts to when it matures.
1 year SOFR
This is how much a non taxable account is discounted by when calculating asset pro forma.
40%