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.

BREAKING DOWN '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.

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