24 relations: Bank rate, Bank run, Basis point, Bear Stearns, Central bank, Certificate of deposit, Collateral (finance), European Central Bank, Eurozone, Federal funds rate, Federal Reserve Board of Governors, Interest rate, Lombard credit, Market liquidity, Monetary policy, Money supply, Overnight indexed swap, Overnight rate, Primary Dealer Credit Facility, Prime rate, Repurchase agreement, September 11 attacks, TED spread, Zero interest-rate policy.
Bank rate, also referred to as the discount rate in American English, is the rate of interest which a central bank charges on its loans and advances to a commercial bank.
A bank run (also known as a run on the bank) occurs when a large number of people withdraw their money from a bank, because they believe the bank may cease to function in the near future.
A basis point (often denoted as bp, often pronounced as "bip" or "beep") is (a difference of) one hundredth of a percent or equivalently one ten thousandth.
The Bear Stearns Companies, Inc. was a New York-based global investment bank, securities trading and brokerage firm that failed in 2008 as part of the global financial crisis and recession, and was subsequently sold to JPMorgan Chase.
A central bank, reserve bank, or monetary authority is an institution that manages a state's currency, money supply, and interest rates.
A certificate of deposit (CD) is a time deposit, a financial product commonly sold in the United States and elsewhere by banks, thrift institutions, and credit unions.
In lending agreements, collateral is a borrower's pledge of specific property to a lender, to secure repayment of a loan.
The European Central Bank (ECB) is the central bank for the euro and administers monetary policy of the euro area, which consists of 19 EU member states and is one of the largest currency areas in the world.
In the United States, the federal funds rate is the interest rate at which depository institutions (banks and credit unions) lend reserve balances to other depository institutions overnight, on an uncollateralized basis.
The Board of Governors of the Federal Reserve System, commonly known as the Federal Reserve Board, is the main governing body of the Federal Reserve System.
An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited or borrowed (called the principal sum).
Lombard credit is the granting of credit to banks against pledged items, mostly in the form of securities or life insurance policies.
In business, economics or investment, market liquidity is a market's feature whereby an individual or firm can quickly purchase or sell an asset without causing a drastic change in the asset's price.
Monetary policy is the process by which the monetary authority of a country, typically the central bank or currency board, controls either the cost of very short-term borrowing or the monetary base, often targeting an inflation rate or interest rate to ensure price stability and general trust in the currency.
In economics, the money supply (or money stock) is the total value of monetary assets available in an economy at a specific time.
An overnight indexed swap (OIS) is an interest rate swap where the periodic floating payment is generally based on a return calculated from a daily compound interest investment.
The overnight rate is generally the interest rate that large banks use to borrow and lend from one another in the overnight market.
On March 17, 2008, in response to the subprime mortgage crisis and the collapse of Bear Stearns, the Federal Reserve announced the creation of a new lending facility, the Primary Dealer Credit Facility (PDCF).
A prime rate or prime lending rate is an interest rate used by banks, usually the interest rate at which banks lend to favored customers—i.e., those with good credit.
A repurchase agreement, also known as a repo, RP, or sale and repurchase agreement, is a transaction concluded on a deal date tD between two parties A and B: If positive interest rates are assumed, the repurchase price PF can be expected to be greater than the original sale price PN.
The September 11, 2001 attacks (also referred to as 9/11) were a series of four coordinated terrorist attacks by the Islamic terrorist group al-Qaeda against the United States on the morning of Tuesday, September 11, 2001.
The TED spread is the difference between the interest rates on interbank loans and on short-term U.S. government debt ("T-bills").
Zero interest-rate policy (ZIRP) is a macroeconomic concept describing conditions with a very low nominal interest rate, such as those in contemporary Japan and December 2008 through December 2015 in the United States.