ECR

(redirected from Earnings Credit Rate)
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ECR

(engineering)
References in periodicals archive ?
Earnings credit rate (ECR) products give corporates implied interest on deposits that they can use to offset cash management fees.
EXHIBIT Earnings Credit Rate Example Average Overnight Earnings Bank Collected Borrowing investment Credit Fees Balance Rate Rate Rate (Annual) $100,000 6.00% 0.75% 1.00% $3,600 Value of Balance: Applied to line $6,000 of credit Invested $750 overnight Applied to bank $1,000 fees Evaluating the optimum application for funds sitting in the bank is a simple process.
The Board also approved, effective January 6, 2005, changing the earnings credit rate on depository institutions' clearing balances at the Reserve Banks from 90 percent to 80 percent of the three-month Treasury bill rate.
Citi also plans to offer its earnings credit rate product outside the United States, starting in coming months with Western European branches, in the expectation that clients will have an incentive to grow their operating business with Citi by using the value of their deposits to offset fees.
The earnings credit rate (ECR) it receives to offset bank service charges "is today on a net basis higher than the return on any MMF out there," Neshat says.
The Board also approved, effective January 8, 2004, changing the earnings credit rate on clearing balances from the federal funds rate to 90 percent of the three-month Treasury bill rate, and increasing the frequency with which depository institutions can change contracted clearing balances.
For every dollar of collected balances you maintain, the bank provides an earnings credit allowance (ECA) based upon its earnings credit rate (ECR) which is typically tied to a market rate, such as the 90-day T-Bill.

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