Sentences with phrase «lending money deposited»

Not exact matches

Most of the money the banking sector lends out is provided by retail deposits, supplemented by borrowing on the «wholesale» market.

If an individual or company deposits money in a bank or savings and loan association, a large portion of the deposit will be lent out as mortgage credit.

If this new legislation is passed, it will likely just require that banks hold onto more money for emergencies, in reserves, rather than actually separate deposits and lending activities from speculative ones.

The Bank of Japan wants the banks to lend, so rather than give them any interest on money deposited with the Bank of Japan, they are (subject to some specific conditions) actually charging them for leaving money parked.

Factors such as the Fed choosing to pay interest on bank reserve deposits, the large cash holdings of big firms, and the persistent regime uncertainty that makes lending / investing seem particularly risky these days can together explain the reluctance of the banks to turn the monetary base into money via the multiplier process.

The average person is surprised to learn that banks lend the same money out multiple times, which is why a run on a bank is inevitably a disaster, as no bank has on hand anything like the sum of what all its depositors have deposited.

If it's losing the money that people have deposited in your bank then I would say yes unless you can do wo with a strong insurance policy and impartial third parties (rating agencies) bless the lending you're doing.

So the more money in deposits a bank has, the more money they can lend out and earn a return on.

World Savings receives money from consumers in the form of deposits and lends money as home or other loans.

There are also such things as secured credit cards, which are credit cards that lend you money based on a deposit amount you set up with the credit card issuer.

Through the online lending process, you are able to work with an agent who is literally a world away and have the money you need deposited directly into your savings or checking account where your family can access it.

Long - term deposits offer a stable funding source for banks, while money in short - term deposits and checking accounts is too liquid to rely on as a source for lending.

The primary function of a bank is to lend money and to accept deposits from the public.

Banks make money by taking in deposits and then lending them out to earn interest income.

The company also provides mortgage lending; treasury management services for businesses, individuals and non-profit entities including wholesale lock box services; remote deposit capture services; trust and wealth management services for businesses, individuals and non-profit entities including financial planning, money management, custodial services and corporate trust services; real estate appraisals; credit - related life and disability insurance; ATMs; telephone banking; on - line and mobile banking services including electronic bill pay; debit cards, gift cards and safe deposit boxes, among other products and services.

Think about the above example — money has been created because the bank is now lending out money it did not have on deposit.

Your deposits into these accounts allow the institutions to use your money to lend to borrowers and each interest on those loans.

The lender will ask the borrower to deposit enough money to bring the loan back to the agreed lending ratio.

Commercial banks are for - profit businesses that take deposits and make loans, paying interest on the deposits and lending money at higher rates to consumers and businesses.

At 0 % there's no reason to lend — not for repos, not for deposits, not for money markets, not for anything.

At 0 % there's no reason to deposit short - term funds, so the banks and money market funds have nothing to lend.

Banks make money by having deposits that they can use to lend out.

Any person who creates or originates United States money by lending against deposits, through so - called fractional reserve banking, or by any other means, after the effective date shall be fined under title 18, United States Code, imprisoned for not more than 5 years, or both.

Money market deposits are largely used to lend to corporations who issue short term commercial paper.

Whatever is not required to be held as reserves is then lent out again, and through the magic of the «money multiplier», loans and bank deposits go up by many times the initial injection of reserves.

The difference between the rates at which money is deposited in a financial institution and the higher rates at which the money is lent out.

Banks make money by taking in deposits and lending out the money.

They get money from ATM fees and from being able to lend out money that we deposit with them at high interest rates.

Traditionally, banks rely on deposits from retail bankers as the source of the money they lend to others.

The money a bank lends come from the pool of money made out of the individual deposits in a bank.

The bank borrows money from people by offering them a certificate of deposit and paying them 2 % and then lends the money out to people wanting a loan at the rate of 6 %.

You can even include bank records to show that the money was deposited into your account (s)(my idea sounds drastic but the mortgage company I worked with asked for tons of paperwork from me because the lending bank had requested it - some borderline ridiculous).

They have a huge market share in collecting deposits (checking accounts, savings accounts, CDs, etc.) from customers in Canada; so, they need to do something with that money and they lend it and rather than sell the loans to Fannie and Freddie... they keep the loans on their balance sheet (i.e. «portfolio lender»).