margin department

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Margin department

The department in a brokerage firm that monitors customers' margin accounts, ensuring that all short sales, stock purchases, and other positions are covered by the margin account balance.

Margin Department

The department in a brokerage firm that deals with margin accounts. It monitors margin accounts opened by clients and ensures that they meet the minimum maintenance required by law and the brokerage itself. Additionally, the department makes margin calls and generally ensures smooth management of the margin accounts by the brokerage. It is also called the credit department.

margin department

The section of a brokerage firm's back office operation that is responsible for overseeing customer credit accounts. The margin department ensures that investors meet the margin standards determined by the Federal Reserve, the various exchanges, and the brokerage firm itself. Also called credit department.
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She has held vice president roles in the credit departments of Wells Fargo (NYSE: WFC), SunTrust Bank (NYSE: STI) and GE Capital (NYSE: GE).
Grainger was one of the first companies to decentralize their credit departments.
Lender willingness to lend is affected by the influence that credit departments exert from within.
But it never should be an informal arrangement between the sales and credit departments.
Some have distinct credit departments that report up the chain of command outside of the sales department, while other firms have their credit department contained within other departments, such as sales.
Fortunately, fewer CFOs, treasurers and other upper management officers view DSO as a sort of infallible and complete measurement of what's happening, notably in the credit departments collections prowess.
Most credit departments will face a change in their risk management system at least once every 10 years.
The role credit departments play in the world's economy came to the forefront following the credit crunch.