Tenor
The length or term associated with a deposit or financial instrument.
Detailed Description
Tenor
What does tenor refer to in banking?
Tenor refers to the duration or time period until a financial instrument matures.
How does tenor affect loan repayment?
Tenor specifies the length of time to repay the loan, influencing the repayment structure and total interest paid.
What are the different types of tenor?
Tenor can be classified as short-term (less than one year), medium-term (one to five years), and long-term (exceeds five years).
How does tenor impact interest rates?
Longer tenors are generally associated with higher interest rates due to increased risk over time.
What is the difference between tenor and maturity?
Tenor refers to the duration until maturity, while maturity is the actual date when the financial obligation ends.