Financial terms

February 19, 2020

What is Bankruptcy

DefinitionBankruptcy is a term used to describe an individual’s or organization’s inability to make payment to its creditors or fulfill its outstanding financial obligations. Though the term is mo...

February 18, 2020

Banker’s Acceptance (BA)

DefinitionThe banker’s acceptance, also known as bill of exchange, is a bank draft that requires a bank to pay a holder of an instrument a stated amount on a specified date. This usually occurs with...

February 18, 2020

Bank Run

DefinitionA bank run is a term used to describe a situation where bank customers withdraw all the money in their deposit accounts for fear that the bank insolvency. The more customers withdraw their m...

February 18, 2020

Bank Reconciliation

DefinitionA bank reconciliation is a document that matches a company’s cash balance on its balance sheet to the equivalent amount on its bank statement. Bank reconciliation is done at intervals to e...

February 18, 2020

Bank-Owned Life Insurance (BOLI)

What is Bank-Owned Life Insurance (BOLI)?DefinitionBank-owned life insurance is a type of life insurance that covers a bank both as the owner and beneficiary. Through the use of some cash-value p...

February 18, 2020

Bank Guarantee (BG)

What is Bank Guarantee (BG)?DefinitionA bank guarantee is a financial term used to refer to the agreement made between three parties—the bank, the beneficiary, and the applicant. The applicant ...