Noncredit Services

AAA

DEFINITION of 'Noncredit Services'

Fee-based services that do not involve the extension of credit that a lending institution offers to correspondent banks or corporate customers. Non-interest income generated from noncredit services can be a significant source of revenue for banks and financial institutions. Examples of noncredit services include trust and investment-related revenues, global cash management, foreign currency exchange, etc.

INVESTOPEDIA EXPLAINS 'Noncredit Services'

Noncredit services enable a bank to grow revenues without putting its assets at risk. Increasingly high priority noncredit services for banks and financial institutions include global custody - safely processing shares for funds managers - and cash management - helping businesses maintain an appropriate corporate cash balances without jeopardizing their short-term liquidity.

RELATED TERMS
  1. Private-Label Credit

    A type of revolving-credit plan managed by a bank or commercial ...
  2. Credit

    1. A contractual agreement in which a borrower receives something ...
  3. Finance

    The science that describes the management, creation and study ...
  4. Line Of Credit - LOC

    An arrangement between a financial institution, usually a bank, ...
  5. Revenue

    The amount of money that a company actually receives during a ...
  6. Revolving Credit

    A line of credit where the customer pays a commitment fee and ...
Related Articles
  1. Are Your Bank Deposits Insured?
    Savings

    Are Your Bank Deposits Insured?

  2. Currency Exchange: Floating Rate Vs. ...
    Forex Education

    Currency Exchange: Floating Rate Vs. ...

  3. What Is The World Bank?
    Insurance

    What Is The World Bank?

  4. The Currency Board: Understanding The ...
    Personal Finance

    The Currency Board: Understanding The ...

comments powered by Disqus
Hot Definitions
  1. Last In, First Out - LIFO

    An asset-management and valuation method that assumes that assets produced or acquired last are the ones that are used, sold ...
  2. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  3. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  4. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  5. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  6. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
Trading Center