imported>Doug Williamson |
imported>Doug Williamson |
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| 1. ''Securities - debt''.
| | A relatively small, sometimes newer, retail bank which competes with larger, often older banks. |
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| A marketable longer-term debt instrument usually administered by a trustee.
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| Bonds typically require the issuer to repay the amount borrowed plus interest over a designated period of time.
| | Challenger banks' focus is generally on retail customers. |
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| The current market yield on the bond is both the market rate of return to the debt investor and the pre-tax market cost to the issuer of debt capital.
| | Challenger banks would generally tend to service smaller corporate clients, if any, rather than larger ones. |
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| Issuers of bonds include a wide range of corporate and public sector entities, including central governments.
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| | In the UK, better-known challenger banks include, among others: Aldermore Bank, Charter Savings Bank, Close Brothers, Hampden & Co., Metro Bank, One Savings Bank, Paragon Bank, Sainsbury's Bank, Secure Trust Bank, Shawbrook Bank and Tesco Bank. |
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| 2. ''Trade finance - credit support''.
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| In trade finance, a bond is an instrument issued by a bank or an insurance company, in favour of a buyer, on behalf of a supplier, as additional assurance to the buyer that the supplier will perform its obligations under the supply contract.
| | By the nature of the sector, new challenger banks arise with relatively greater frequency than other banks. |
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| Such a bank bond or insurance company bond will be supported by an indemnity issued by the supplier in favour of the bank or insurance company.
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| Examples include advance payment bonds, bid bonds, customs bonds, performance bonds and retention bonds.
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| In this context, the terms "bond" and "guarantee" are often used interchangeably.
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| 3. ''Risk management - guarantee.''
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| A guarantee provided by one party to another.
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| 4. ''Risk management - collateral.''
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| An amount of money provided as security for a guarantee.
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| == See also == | | == See also == |
| * [[Advance payment bond]] | | * [[Big 4]] |
| * [[Agent bank]] | | * [[Central bank]] |
| * [[An introduction to debt securities]] | | * [[Commercial banks]] |
| * [[Bearer bond ]] | | * [[Competition & Markets Authority]] |
| * [[Bid bond]]
| | * [[Disruptor]] |
| * [[Bond futures]]
| | * [[DTLB]] |
| * [[Bond issue]]
| | * [[Independent Commission on Banking]] |
| * [[Bond mandate]]
| | * [[Retail]] |
| * [[Bonding]]
| | * [[Ring fence]] |
| * [[Bonding line]]
| | * [[Shadow banking]] |
| * [[Bulldog bond]]
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| * [[Callable bond]]
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| * [[Catastrophe bond]]
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| * [[Clean price]]
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| * [[CMO]]
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| * [[Convertible bonds]]
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| * [[Corporate bond]]
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| * [[Cost of debt]]
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| * [[Counter-indemnity]]
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| * [[Coupon bond]]
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| * [[Covered bond]]
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| * [[Credit support]]
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| * [[Customs bond]]
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| * [[Depositary]]
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| * [[Dirty price]]
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| * [[Drop-lock bond]]
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| * [[Eurobond]]
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| * [[Exchangeable bond]]
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| * [[Floating rate note]]
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| * [[Foreign bond]]
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| * [[Gilts]]
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| * [[Government paper]] | |
| * [[Guarantee]] | |
| * [[Indemnity]] | |
| * [[Interest determination date]] | |
| * [[Internal rate of return]] | |
| * [[Investment-grade bond]] | |
| * [[Jumbo]]
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| * [[My word is my bond]]
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| * [[Obligation]]
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| * [[On-demand bond]]
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| * [[Par bond]]
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| * [[Par yield]]
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| * [[Paying agent]]
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| * [[Performance bond]]
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| * [[Redeemable bond]]
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| * [[Retained bonds]]
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| * [[Retention bond]]
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| * [[Security]]
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| * [[Shallow discount bond]]
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| * [[Short term]]
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| * [[Standby letter of credit]]
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| * [[Straight bond]]
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| * [[Surety bond]]
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| * [[Tender bond]]
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| * [[Yield]]
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| * [[Yield to maturity]]
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| == External link ==
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| *[https://www.bba.org.uk/customers/business-banking/financial-support/bonds-guarantees/ UK Finance - Bonds & Guarantees]
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| [[Category:The_business_context]]
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| [[Category:Long_term_funding]]
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| [[Category:Compliance_and_audit]]
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| [[Category:Manage_risks]]
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| [[Category:Risk_frameworks]]
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| [[Category:Treasury_operations_infrastructure]]
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A relatively small, sometimes newer, retail bank which competes with larger, often older banks.
Challenger banks' focus is generally on retail customers.
Challenger banks would generally tend to service smaller corporate clients, if any, rather than larger ones.
In the UK, better-known challenger banks include, among others: Aldermore Bank, Charter Savings Bank, Close Brothers, Hampden & Co., Metro Bank, One Savings Bank, Paragon Bank, Sainsbury's Bank, Secure Trust Bank, Shawbrook Bank and Tesco Bank.
By the nature of the sector, new challenger banks arise with relatively greater frequency than other banks.
See also
