BANKABLE ASSET Meaning and
Definition
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A bankable asset refers to an item or property that is deemed valuable and can be used as collateral to secure a loan or financial transaction. It is an asset that is recognized and accepted by financial institutions as a reliable form of collateral.
Bankable assets can take various forms, including but not limited to real estate properties, valuable securities, equipment, or even intellectual property. These assets are typically tangible or have a measurable value that can be assessed easily. For instance, a piece of real estate is considered bankable because it has a market value that can be determined through appraisals.
The term "bankable" signifies the acceptance of the asset by banks or lending institutions, assuring that it meets the necessary criteria for collateral or as security for a loan. This implies that the asset possesses sufficient value and liquidity, allowing it to be sold or converted into cash without significant difficulty if the borrower defaults on the loan.
Bankable assets serve as a safeguard for lenders, as they provide a means to recover the owed amount in case of default by the borrower. When evaluating the creditworthiness of a borrower, banks and financial institutions consider the quality and marketability of the assets being offered as collateral, as well as their appraised value.
In summary, a bankable asset refers to a valuable item or property that can be utilized as collateral to secure a loan, recognized and accepted by financial institutions due to its tangible value and ability to be converted into cash if necessary.
Common Misspellings for BANKABLE ASSET
- vankable asset
- nankable asset
- hankable asset
- gankable asset
- bznkable asset
- bsnkable asset
- bwnkable asset
- bqnkable asset
- babkable asset
- bamkable asset
- bajkable asset
- bahkable asset
- banjable asset
- banmable asset
- banlable asset
- banoable asset
- baniable asset
- bankzble asset
- banksble asset
- bankwble asset
Etymology of BANKABLE ASSET
The term "bankable asset" is composed of two words: "bankable" and "asset".
- Bankable: The word "bankable" originated from the term "bank" combined with the suffix "-able", indicating the capacity or worthiness of something being banked upon. "Bank" is derived from the Old Italian word "banca" or the Old French word "banque", which both refer to a bench or counter used by merchants. Over time, "bank" came to signify the financial institution where people would deposit money or seek loans. Therefore, "bankable" means something that is acceptable, reliable, or secure enough for a bank to consider it worth investing in or lending against.
- Asset: The word "asset" has its roots in the Old French word "assez" or the Latin word "assessus", which mean "enough" or "sufficient".
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