Customer's loan

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Customer's loan

Agreement signed by a margin customer that allows a broker to borrow margin securities up to the level of the customer's debit balance to help cover other customers' short positions.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Customer's Loan

An agreement that a client may make with a brokerage allowing the brokerage to borrow the client's margin securities to cover short sales and fail to delivers made by other clients. Margin securities are securities that the client uses as collateral in order to borrow from the brokerage and buy other securities. Even though the brokerage possesses the margin securities, they still belong to the client. As a result the brokerage must have a customer's loan agreement on file to use the securities for other purposes. A customer's loan agreement should not be confused with a margin agreement. See also: Margin account.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
'Net interest income from customer loans and deposits sustained its strong trajectory growing by 44 percent to P5.4 billion,' according to the 68-year-old bank's statement.
Customer loans (net of reserves and reserved agios) of the Arab Tunisian Bank (ATB) reached 4.106 billion dinars in the first half of the year, against 4.101 billion as of June 30, 2018.
The one-year MCLR is the benchmark against which most customer loans such as auto, personal and home loans are priced, the report added.
Net interest income from customer loans and deposits surged by 29 percent to P4.7 billion, driven by the continued expansion of retail loans and low-cost deposits.
Net interest income from customer loans and deposits grew by 29 percent year-on-year to P4.7 billion.
In a disclosure to the Philippine Stock Exchange, the bank said net interest income from customer loans and deposits sustained its healthy trajectory growing by 29 percent to P4.7 billion.
While the NPL's difference is small, net customer loans and advances to customers between the two are at 99 per cent difference with KCB having Sh455 billion and NBK posting Sh47 million.
Total operating income had risen from PS639.4m to PS652.3m, driven by growth in mortgages, credit cards and customer loans. The accounts say: "Operating income incresaed by 2% to PS653.2m, supported by growth in net interest income and a 14.3% increase in non-interest income, which reflected growth in fee-generating credit card balances and higher fair value gains on financial instruments compared to the prior year.
Banks have also found a viable alternative in government lending when they shun customer loans.Lending to government comes with fewer administrative demands both in the disbursement and collection of loan dues and is also risk free in that there is little chance of default unlike in the case of private sector lending.
The money will go to rectify customer accounts that were overcharged due to a mistake in interest rate calculations concerning customer loans for the period of 2008-2013, Financial Ombudsman Pavlos Ioannou told CNA.
The state-owned Cyprus Cooperative Bank (CCB) will pay up to e1/42 million to rectify an initial correction made to customer accounts that were overcharged due to a mistake in interest rate calculation concerning customer loans for the period of 2008-2013, Financial Ombudsman Pavlos Ioannou said.
Customer loans and advances reached KD 14.8 billion (USD 49.5 billion) as of end of March 2018, 5.6% up from last year's levels.

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