Bank Credit

AAA

DEFINITION of 'Bank Credit'

The amount of credit available to a company or individual from the banking system. It is the aggregate of the amount of funds financial institutions are willing to provide to an individual or organization.

INVESTOPEDIA EXPLAINS 'Bank Credit'

A company or individual's bank credit depends on both the borrower's capacity to repay and the overall amount of credit available in the banking system. Bank credit for individuals expanded enormously over the past 50 years, as consumers grew accustomed to having several credit cards. Some observers were predicting that the financial crisis in 2008 could mean a return to those earlier years, when credit, although relatively cheap, was difficult to obtain, especially for those with poor credit histories.

RELATED TERMS
  1. Credit Rating

    An assessment of the credit worthiness of a borrower in general ...
  2. Bad Bank

    A bank set up to buy the bad loans of a bank with significant ...
  3. European Credit Research Institute ...

    An independent research center founded by European credit institutions ...
  4. Bank

    A financial institution licensed as a receiver of deposits. There ...
  5. Credit

    1. A contractual agreement in which a borrower receives something ...
  6. Line Of Credit - LOC

    An arrangement between a financial institution, usually a bank, ...
Related Articles
  1. How To Dispute Errors On Your Credit ...
    Credit & Loans

    How To Dispute Errors On Your Credit ...

  2. 9 Reasons To Say
    Options & Futures

    9 Reasons To Say "No" To Credit

  3. 6 Major Credit Card Mistakes
    Options & Futures

    6 Major Credit Card Mistakes

  4. How Bank of America Holds 1/8 of All ...
    Stock Analysis

    How Bank of America Holds 1/8 of All ...

comments powered by Disqus
Hot Definitions
  1. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  2. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  3. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  4. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  5. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  6. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
Trading Center