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12 March, 2022

Securitization, Loan Sales, Mobile Banking, Spread & Burden

 Securitization of loan:

Securitization is taken to mean a device of structured financing where an entity seeks to pool together its interest in identifiable cash flows over time, transfethe same to investors either with or without the support of further collateraland thereby achieve the purpose of financing. It is the financial practice of pooling various types of contractual debt. The principal and interest on the debt, underlying the security, is paid back to the various investors regularly.

 

 Loan sales:

A loan sale is a commodity used term for the sale of loan pools. Loans acquired from failed financial institutions are generally sold in pools through sealed bisale. Typically sale contains loans that have similar characteristics. The loans arrefined into  pools according to  specific  criteria. Pooling considerations may include loan size, quality type, collateral and location.


Mobile banking:

Mobile banking refers to the activities of banking and financial services with the help of mobile communications. It is consists of 3 inter-related concepts:

i.  Mobile accounting, ii.   Mobile brokerage,

iii.  Mobile financial information services.

The services may be offered are:

i.  Accounting information: Mini statement, transaction alert, balance checking etc.

ii.  Payments, deposits, withdrawals & transfers: Local & global fund transfer, bill payment, etc.

iii.  Investment: Portfolio management service, real time stock quotes, etc.