insider (noun, in-sid-er, \ ɪnˈsaɪdər \) lending (noun, lend-ing, \ ˈlendɪŋ \)
Definition: is a process of loan advancing executed by a bank and provided to its own employees, officers, and directors. Regularly, banking laws require each bank to make loans to their insiders at the credits terms, repayment and interest rates, and criteria that are commonly applicable to the other, outside borrowers. These rules are applied not only to keep the financial operations and relations fair but also to limit the insiders’ access to the bank funds.
In a Sentence:
- When the insider lending is not proceeded with at the regular rates, this can create a serious conflict of interests inside the bank.
- This year, we have experienced a fast growth of a number of insider lending operations. If this continues, our funds may get affected.
- Insider lending is oftentimes associated with fraud and corruption. However, these days, it is very strictly regulated and controlled by law.
Synonyms and related words: loan, credit, interest rate, insider, fair lending, borrower, repayment rates, credit evaluation criterion, insider loan