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banking

A collection of 15 issues

Understanding Net Interest Margin: Definition, Formula, and Improvement Tips

What Is Net Interest Margin? Net Interest Margin (NIM) is a key profitability ratio used by banks, credit unions, and other lending institutions to measure the difference between the interest income they earn on loans and the interest they pay on deposits and borrowings. Expressed as a percentage of average

Glass-Steagall Act: History, Provisions, and Modern Relevance

Introduction The Glass-Steagall Act, formally the Banking Act of 1933, reshaped American finance during the Great Depression. Sponsored by Senator Carter Glass and Representative Henry Steagall, the landmark law separated commercial banking from investment banking, aiming to restore public confidence, limit speculative excess, and protect everyday depositors from Wall Street

Understanding Fractional Reserve Banking: How Money Multiplies

What Is Fractional Reserve Banking? Fractional reserve banking is a foundational practice in modern finance in which commercial banks are required to keep only a fraction of their customers’ deposits as physical reserves. The remaining portion can be lent out, allowing new money to be created through credit expansion. This

FinTech: Transforming Finance in the Digital Age

What Is FinTech? Financial technology, or FinTech, blends software, data science, and connectivity with traditional banking to create smarter financial solutions. Rather than visiting a branch or calling a broker, users now manage everything through smartphones. By digitizing money, FinTech startups lower operating costs, accelerate transactions, and democratize access to

Bank Run: Causes, Famous Examples & Modern Protections

Understanding a Bank Run A bank run occurs when a large number of depositors rush to withdraw their money simultaneously because they believe the institution may become insolvent. Since banks lend out most of their deposits, they rarely keep enough cash on hand to satisfy everyone at once, so panic