CTP Practice

Financial Institutions

Organizations that help firms obtain capital, invest funds, and manage treasury operations.

Commercial Banks

Financial institutions that accept deposits and provide loans.

Central Bank

The main bank responsible for monetary policy and stability of the financial system.

Basel III

A global financial regulation established in response to the 2007-09 financial crisis, setting higher minimum capital standards for banks.

Non-Bank Financial Institutions (NBFI)

Financial institutions that are not considered banks or central banks, covering a range of services in the financial system.

Depository Services

Bank services that involve accepting deposits from customers.

Liquidity Coverage Ratio

A Basel III requirement that ensures banks have enough liquid assets to cover short-term obligations.

Federal Deposit Insurance Corporation (FDIC)

A U.S. government agency that insures deposits at banks and savings associations.

Gramm-Leach-Bliley Act (1999)

Legislation that repealed the Glass-Steagall Act, allowing the merger of commercial banks, investment banks, and insurance companies.

Monetary Policy

Actions taken by a central bank to manage the economy through controlling the money supply.

Bank Regulation

The framework of laws and guidelines that govern the operations of banks to ensure banking stability and consumer protection.

Net Stable Funding Ratio

A Basel III requirement to promote funding stability by ensuring banks have a stable source of funds.