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 ...

Hot Definitions
  1. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  2. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  3. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  4. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  5. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  6. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
Trading Center