Customer's loan

(redirected from Customers' Loans)

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.

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.
References in periodicals archive ?
Total assets grew 4.4 per cent (+$836 million) to $19,871 million as at 31 December 2015, while customer deposits rose 5.9 per cent (+$922 million) to $16,637 million, and customers' loans were up 4.3 per cent (+$205 million) to $4,932 million.
The bank also claimed it provided almost half of the country's mortgages and approved 70% of customers' loans. Jim O'Keefe, AIB's head of mortgages, insisted their target shows the bank is open for business.
The bank said that it has launched a new mortgage software platform that makes it easier for loan officers to instantaneously view and manage customers' loans. The software is called CBConnex and features real-time loan pricing, locking and guideline matching capabilities.
The police allege he illegally collected money by swindling the bank in similar schemes and embezzling Sanwa customers' loans from November 1994 to January this year.
Total assets grew three per cent (+$0.6 billion) to $19 billion as at 31 December 2014, while customers' deposits rose 6.6 per cent (+$1.0 billion) to $15.7 billion and customers' loans were up 4.8 per cent (+$0.2 billion) to $4.7 billion.
However, banks have cautioned that these figures do not reflect new net lending, but reflect restructuring and refinancing of existing customers' loans.
Some lenders are even sneakily adding protection policies to customers' loans without asking if they want it.
Customers' deposits increased during the first nine months of 2011 by seven per cent (+$0.8 billion) to $12.7 billion as at 30 September, 2011 (+ 9.8 per cent year-on-year increase), and net customers' loans increased by 5.4 per cent (+$ 0.2 billion) during the first nine months of 2011 to $4 billion as at 30 September, 2011 (+ 12.7 per cent year-on-year increase).