adminBank run: A situation that occurs when a large number of bank or other financial institution’s customers withdraw their deposits simultaneously due to concerns about the bank’s solvency.
* * *
Bank secrecy: One of the conditions of the relationship between a bank and its customers is that the customers’ dealings and financial affairs will be treated as confidential.
* * *
Bankruptcy: A legal proceeding involving a person or business that is unable to repay outstanding debts. The bankruptcy process begins with a petition filed by the debtor (most common) or on behalf of creditors (less common).
* * *
Borrowing capacity: The amount of money available for a company to borrow, based on the company’s current financial state. A lender may also consider available collateral in determining borrowing capacity.
* * *
Borrowing rate: The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets.
* * *
Cash accounting: An accounting method where receipts are recorded during the period they are received, and expenses are recorded in the period in which they are actually paid.
Online Reporter