Banking ProductIndore Investment
Counts Toward NII?
Description
Relative Risk
Transactions are when a firm sells its accounts receivable to a third party to get cash more quickly than when waiting for customers to pay.
Moderate
Alternative Investments (e.g., Hedge Funds)
Not generally
Investments aside from stocks, bonds, or cash.
Asset Financing
No (unless financial, not operating leases)
Leases of equipment for use.
Low-Moderate
Brokerage
Buy and sell orders for financial assets in exchange for a fee or commission.
Corporate Finance
Loans to businesses for mergers, acquisitions, and other forms of expansion or restructuring.
Moderate-High
Credit Cards
Revolving credit lines for purchases with interest charged on balances.
Current Accounts/ Deposits
Funds held in checking, savings, money market, and CD accounts can be withdrawn with little notice.
Processing trades in securities and keeping financial assets secured for other parties
Fixed-Rate Bonds
Fixed-term accounts offering a fixed rate of interest over a specific period.
Foreign Exchange
Facilitates clients needing to trade in foreign currencies and remit funds internationally.
Low-Medium
Insurance
Products through which a company compensates for loss/damage, illness/death, in return for premium payment.
Loans between banks.
Investment Management
Professional management of securities and assets to meet investment goals.
Moderate
Leveraged LoansPune Stock
Floating rate loans to heavily indebted corporations secured by specific assets.
Lines of Credit
Flexible borrowing arrangements with interest on funds used.
Moderate
Mortgages
Loans secured by property.
Moderate
Notice Deposit Accounts
Savings account requiring notice before withdrawal to avoid penalties.
Overdrafts
Short-term borrowing when an account balance goes below zero.
Moderate
Packaged Accounts
Yes (when through linked products)
Current accounts with extra features like insurance and better rates.
Personal Loans
Unsecured loans from a bank or lender.
Moderate
Project Finance
Funding where repayment comes primarily from project revenues.
Real Estate Loans (Commercial)
Loans for commercial properties.
Moderate
Structured Finance
Complex financial instruments for large institutions with needs that can’t be met with more traditional lending.
Syndicated Loans
Loans offered by a group of lenders to a single borrower.
Moderate
Term Loans
Loans with a specific repayment schedule and fixed/floating interest rate.
Moderate
Trade Finance
Financing of international trade flows.
Moderate
Trusts and Estate Planning
A trust holds assets on behalf of a beneficiary; estate planning minimizes taxes on an estate.
Wealth Solutions/Financial Planning
Advice service for high net worth individuals.
New Delhi Wealth Management