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. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. 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 ...
  6. 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 ...
Trading Center