Home > Term: interest operations
interest operations
(1) All bank transactions based on an interest margin. The margin derives from the fact that the bank pays a lower rate of interest on the funds received from clients than it earns on the loans it grants. The bank uses the income from this margin to cover its expenses and make a profit.
(2) Bank transactions connected with the payment or receipt of interest (claims, liabilities). Bills of exchange and the money market securities business are generally also included under interest operations.
- Part of Speech: noun
- Industry/Domain: Banking
- Category: Investment banking
- Company: UBS
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Creator
- Stefan K
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