A situation where an underwriter of a new securities issue has been unsuccessful in getting other firms to become members of the underwriting group or syndicate. As a result, the security will not be sold to as many clients as had been desired.
Underbanked can also refer to an individual or business that heavily relies on checks and cash as a mean of funding rather than bank related methods such as credit cards or loans.
An investment banker is underbanked when he or she is facing challenges in acquiring additional members for the underwriting group or syndicate for a new securities issue. If the originating investment banker is unable to find enough firms, he or she may not be able to underwrite the issue - and therefore would be unable to offer the security for sale.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
underbanked — When an originating investment banker cannot find enough firms to underwrite a new issue. Bloomberg Financial Dictionary * * * underbanked UK US /ˌʌndəˈbæŋkt/ adjective BANKING, FINANCE ► used to describe groups of people with a particular level… … Financial and business terms
Underbanked — The underbanked are people or businesses that have poor access to mainstream financial services such as banks and so rely upon alternative financial services targeted at poor people such as cheque cashers, loan sharks and pawnbrokers They may be… … Wikipedia
underbanked — Fin without enough brokers to sell a new issue … The ultimate business dictionary
underbanked — … Useful english dictionary
the underbanked — UK US noun [plural] BANKING, FINANCE ► the people with a particular level of income who do not use all the financial services that those with that income would normally be expected to use: »Mobile phones could be used to provide financial… … Financial and business terms
The Center for Financial Services Innovation — (CFSI) is a nonprofit financial services consultancy headquartered in Chicago, specializing in serving unbanked and underbanked consumers (that is to say, people without bank accounts). It has been characterized as a national leader in research… … Wikipedia
Etisalat — Infobox Company | company name = Emirates Telecommunication Establishment Etisalat company company type = Public key people=Mohammed Hassan Omran Chairman, Mohammed Al Qamzi CEO revenue = profit $5,815 million (FY 2007 08) foundation = United… … Wikipedia
ShoreBank — Infobox Company company name = ShoreBank (SBK) company company type = Community Development Bank, Green Bank foundation = 1973 location = Chicago, Illinois origins = key people = Ron Grzywinski, Mary Houghton, Joseph E. Hasten area served =… … Wikipedia
CfSi — can refer to: Culver s Franchising System, Inc., a fast casual restaurant chain, headquartered in Prairie du Sac, Wisconsin. The Center for Financial Services Innovation, a non profit think tank serving the underbanked, headquartered in Chicago,… … Wikipedia
Alternative financial services in the United States — refers to a particular type of financial service, namely sub prime lending (that is lending to people with relatively poor credit) by non bank financial institutions. This branch of the financial services industry is more extensive in the United… … Wikipedia