Borrower: Difference between revisions

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One who borrows. From lenders. Under [[loan]]s. Involves [[indebtedness]].
{{a|banking|}}One who borrows. From [[lender|lenders]]. Under [[loan]]s. Involves [[indebtedness]].


If one borrows by means of deposits, you ought to be a licensed [[deposit-taking institution]], which is another way of saying a [[bank]].
If one borrows by means of [[deposit]]s, you ought to be a licensed [[deposit-taking institution]], which is another way of saying a [[bank]].


Being a [[Counterparty|swap counterparty]] is not to be a [[borrower]], although one’s [[mark-to-market]] [[exposure]], if not collateralised, can certainly resemble [[indebtedness]] even though, strictly speaking, it isn't.
Being a [[Counterparty|swap counterparty]] is not to be a [[borrower]], although one’s [[mark-to-market]] [[exposure]], if not collateralised, can certainly resemble [[indebtedness]] even though, strictly speaking, it isn’t.


{{seealso}}
{{sa}}
*[[cross default]]
*[[Cross default]]

Latest revision as of 21:09, 19 January 2021

Banking basics
A recap of a few things you’d think financial professionals ought to know
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One who borrows. From lenders. Under loans. Involves indebtedness.

If one borrows by means of deposits, you ought to be a licensed deposit-taking institution, which is another way of saying a bank.

Being a swap counterparty is not to be a borrower, although one’s mark-to-market exposure, if not collateralised, can certainly resemble indebtedness even though, strictly speaking, it isn’t.

See also