Knowyourbank.com’s financial education posts are focused on helping our readers better understand credit union and banking terms, financial ratios and instruments. The educational posts share explanations for sometimes difficult or complex terminology.
Total Deposits is a term included in the balance sheet of a bank. To a common person, the word deposit most often implies the act of placing your money in the safety of a bank. When calculating the Total Deposits from a bank’s perspective, various kinds of deposits are taken into consideration. These are added [...]
Before you start shopping around for a home, it's a good idea to receive a pre-approved mortgage from a lender. This lets you know how much money you can borrow when you decide to purchase a home. However, as you prepare to borrow to buy, you need to make sure you aren't confusing pre-qualification and [...]
Perpetual Preferred Stock is issued with no set maturity date for when the shareholder shall receive a return of their invested principal. The dividends on Perpetual Preferred Stock are paid indefinitely, while the issuers are able to redeem the stock at any instant in time from the shareholder.
Total Deposits for credit unions are the sum of Total Shares of the credit union and non-member deposits. Each member owns a part of the credit union against the deposits made by them. Hence the credit union member's deposits are defined as shares. The profits and savings against the total deposits are shared among the [...]
US Office Deposits US bank deposits that are collected in domestic branches and operations (US Based). These deposits are insured by the FDIC. US banks that only have domestic operations file their call reports under FFIEC 041. Foreign Office Deposits Deposits that are collected in foreign branches of US banks or their operations outside of [...]
Because the cost of a higher education continues to rise, chances are that you will need student loans to help you cover the cost of going to school. Even if you have saved up with a 529 plan, and have some sort of partial scholarship, you might still need student loans to help pay for [...]
The Texas Ratio is a financial ratio that is used to measure the credit standing of banks or credit unions. It is a system that identifies early warning signs of problematic financial institutions regarding their credit. The ratio shows a comparison between a banks tangible common equity capital and its total troubled loan portfolio (Non-performing [...]
Who are the U.S. Financial Regulatory Agencies, and What Do They Do? The financial system in the United States has a number of regulatory bodies designed to protect consumers and make sure that the system continues to work efficiently. Understanding who these regulators are, and what they do, is important. These bodies set the rules [...]
Total Bank Equity Capital consists of retained earnings, common and perpetual preferred stock, and other accumulated income but does not include non-controlling (minority) interest in consolidated subsidiaries (if you did include this you would have Total Equity Capital). Total Bank Equity Capital in simple terms is a broad measure of Equity Capital that does not [...]
Goodwill is an intangible asset for both banks and credit unions, and can be most easily explained as an asset which can’t be invested or generate any revenue for the business. It is calculated by deducting the total purchase price of the assets as compared to their actual market value. Whenever a bank, or credit [...]
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