Adverse Credit History. To be eligible for a Federal PLUS loan,
the borrower may not have an adverse credit history, which is
defined as having a bankruptcy, foreclosure, repossession, tax
lien, wage garnishment or default determination in the last five
years or a current delinquency of 90 or more days.
Alternative Student Loan. See Private Student Loan.
The National Settlement Service allows participants in private-sector
clearing arrangements to do multilateral funds settlements on a net basis
using balances in their Federal Reserve accounts. The service provides
an automated mechanism for submitting settlement information to the
Reserve Banks. It improves operational eff iciency and controls for this
process and reduces settlement risk to participants by granting settlement
f inality for movements of funds on settlement day.
The views expressed in this publication are those of the authors and do not necessarily reﬂect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent. ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. Use of the term “country” does not imply any judgment by the authors or ADB as to the legal or
We start by discussing the role of explicit deposit insurance in the financial safety net as well as the
peculiar features of different deposit insurance schemes across countries. We review both the
theoretical literature and the empirical evidence on the topic. We then move to investigate how
deposit insurance is likely to affect interest rates in the banking sector. We collect data on different
economic and financial variables, as well as institutional indicators, for a set of 80 countries.
The Credit Transfer Act contains various regulations with regard to consumer protection. If a credit
institution accepts a credit transfer and it is carried out late, the accepting credit institution has to pay
interest which amounts to the base rate according to the German Civil Code plus 5%. If the transfer
gets lost, a “money back guarantee” applies for amounts up to EUR 12,500 plus interests and
charges. Other liabilities are unaffected by this Act.
The prospect of Stability Bonds could potentially alleviate the current sovereign debt
crisis, as the high-yield Member States could benefit from the stronger creditworthiness
of the low-yield Member States. Even if the introduction of Stability Bonds could take some
time (see Section 2), prior agreement on common issuance could have an impact on market
expectations and thereby lower average and marginal funding costs for those Member States
currently facing funding pressures.
As can be seen in Table 1, the number of observations available is large and has grown
continuously throughout the period studied. Overall, there are data on over 3 million loans for
the five dates analysed. This number of observations ensures the efficiency of the
econometric estimates presented in the following section.
The majority of companies’ loans are not secured by collateral, or in other words,
have only a personal guarantee. Thus, on average, almost 85% of loans have no collateral.
As regards collateral, the pledging of collateral increases the PD when compared
with unsecured lending. Within secured loans, the PD of those that are 100% secured is
lower than that of those secured to a value of over 50% but not to a full 100%, although the
latter account for only a small percentage of the sample. Finally, loans guaranteed by a credit
institution or the public sector have a lower likelihood of default, less even than in the case of
unsecured loans. Note that this latter class of loan is subject to a double evaluation, i.e. by the
Payment cards in the form of debit cards are usually issued by banks as bank cards with which
customers may also draw on their account balances outside their bank (eg cashless payments at
automatic cashpoints, withdrawals at cash dispensers).
Bank cards as payment cards have evolved since their introduction as guarantee cards for
eurocheques (ec cards) and their main function today is for electronic payments at payment terminals.
While the United States struggles to develop a national infrastructure
investment plan, the European Union has been operating a transna-
tional, publically chartered infrastructure bank for longer than half a
century. Founded in 1957, the European Investment Bank funds criti-
cal projects throughout Europe and in developing nations worldwide
to the tune of tens of billions of dollars every year.
The bank is capitalized by funds from its 27 member states but also
raises a large portion of its capital from issuing bonds.
The technology-based Effluent Guidelines could not guarantee achievement of
adequate water quality in all receiving waters, so permit writers were required to set even
more stringent “water-quality-limited” standards for plants discharging into such water
bodies. These standards necessarily depended on the current conditions of the receiving
water body and its capacity to absorb waste. Also, the effluent limitations for any firm
affected and were affected by the effluent limitations on all other firms.
The front-line administration of this program—i.e.
At the same time, nongovernmental organizations (NGOs) that have a permanent consulta-
tive forum with the World Bank (WB), the WB-NGO Committee, identified social funds as the
most significant Bank-supported portfolio of programs that effectively include civil society or-
ganizations in their design, management, and implementation. In the spring of 1996, the com-
mittee requested the Bank’s management to organize an international learning event on social
Social funds are expanding in all parts of the developing world. The
attractive feature of social funds is that they use the comparative strengths
of each of the government, private sector, and community organization
partners and coalesce them into an integrated whole. The communities
identify, design, and help implement projects such as schools, health
clinics, roads, and water supply that will serve their needs. The govern-
ment provides financing, monitors and supervises the projects, and en-
sures that the operation and maintenance of these facilities is adequate.
An explicit system of Deposit Insurance may be defined as the instrument through which the
banking system guarantees that funds deposited by the public in a bank are independent of solvency
and liquidity conditions of the bank itself, so that depositors may be sure of being reimbursed at any
time. Recently, much attention has been given in the economic literature to the role of legal,
political and regulatory institutions as important determinants of the evolution in both the financial
structure and efficiency as well as the macroeconomic performances of one country.
were conscious of the need to head off growing support for deposit guarantees, as one
Western State after another joined the march toward mandated insurance schemes. The
Republicans' solid majority in the 1909 Congress, combined with the new President's
high-profile support, thus assured passage of the Postal Savings Bill of 1910. Among the
large industrial countries, only Germany – which during the 19th century had developed
an extensive system of municipal savings banks serving a similar purpose – waited longer
to establish postal savings....
Chapter 13 - Regulation of commercial banks. In this chapter, we reviewed the regulations imposed on CBs. We provided an overview of historical and current regulations on CBs' product offerings and geographic expansion opportunities. The recent loosening of regulations in these areas is likely to result in the emergence of many large U.S.
One website’s visitor is another website’s customer, and bringing customers and retailers together is now a billion dollar international industry. Whilst Internet traffic crosses international borders with ease, payment for supplying that traffic does not. Members of the online publishing industry have come up with a novel solution – they have set up their own member-only international payments system.
1. The bank won’t lend you the money without some …….that you will pay it back. (A) profit (B)interest (C)charge (D) guarantee 2. Don’t hurry! There is no need……… (A)running (B)to run (C)run (D)you run 3. I am going to have short rest
The findings, interpretations, and conclusions expressed in this book are entirely those of the authors
and should not be attributed in any manner to the World Bank, to its affiliated organizations, or to
members of its Board of Executive Directors or the countries they represent. The World Bank does
not guarantee the accuracy of the data included in this publication and accepts no responsibility for
any consequence of their use.