What is the minimum capital adequacy ratio that must be attained under Basel III?

June 30, 2024 No Comments

A: Under Basel III, the minimum capital adequacy ratio that banks must maintain is 8%. The capital adequacy ratio measures a bank’s capital in relation to its risk-weighted assets. The capital-to-risk-weighted-assets ratio promotes financial stability and efficiency in economic systems throughout the world. Basel III

What is the rate of return I can expect on a savings account?

June 30, 2024 No Comments

A: Prior to the Great Recession, savings account rates offered by banks could typically be found in the 4 to 8% range, depending on the inflation in the economy. Since that time, the Federal Reserve has undertaken unprecedented steps towards creating a low-interest rate environment.

What kind of summer interships are available for a finance student?

June 30, 2024 No Comments

A: There are numerous kinds of internships available to finance students. Generally, there are five core areas of finance you should look into when looking to land that summer internship: banks, life insurers, investment companies, securities firms and credit rating agencies. Look for an internship

What net interest margin is typical for a bank?

June 30, 2024 No Comments

A: In the United States, the average net interest margin (NIM) for banks was 3.10% in the first quarter of 2017. Though a rebound from the 30-year low of 2.95 in the first quarter of 2015, it’s lower than a decade ago: The net interest

What to bring to a bank to open a checking account

June 30, 2024 No Comments

A: Opening a checking account is a fairly simple process. You choose a bank, show up, fill out some paperwork, provide some documentation and leave with a functioning account – most of the time. Eligibility requirements for checking accounts are few. All banks require you

What transactions cannot be made using prepaid credit cards?

June 30, 2024 No Comments

A: It is difficult to rent automobiles using prepaid credit cards with many major American car rental companies. There are some that allow their use, but many do not. For plans that include car rentals, it is advisable to use a bank-issued credit card, preferably

What are the 9 major financial institutions?

June 30, 2024 No Comments

A: In today’s financial services marketplace, a financial institution exists to provide a wide variety of deposit, lending and investment products to individuals, businesses or both. While some financial institutions focus on providing services and accounts for the general public, others are more likely to

What are the Gnomes of Zurich?

June 30, 2024 No Comments

The “Gnomes of Zurich” is a euphemism for Swiss bankers. The name is meant as an insult because gnomes, most often found in fairy tales and legends, traditionally are regarded as secretive and greedy. And, Zurich – Switzerland’s financial hub – is home to a

What are the pros and cons of digital gift cards (e-gift cards)?

June 30, 2024 No Comments

A: Many retailers, both of the online and brick and mortar variety, offer consumers gift cards as a way to shop or give money to friends. There are two types of gift cards: physical and digital, each of which comes with a variety of features

What effect will a prenuptial agreement have on a 401(k)?

June 30, 2024 No Comments

A: Courts have ruled that a prenuptial agreement for qualified plan (including 401(k)) assets is invalid. The logic is that only a spouse can give up the rights to spousal benefits. When someone signs a prenuptial agreement, that person is not considered a spouse at

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