What are the terminologies used in banking?
Bank Rate - This is the rate of interest that the RBI levies on banks if they wish to borrow money. Basis Point - This is one hundredth of a percentage. This is usually used to indicate change in interest rates. Capital Gain - This is a profit or gain attained by a bank by sale of investments or properties.
Bank Rate - This is the rate of interest that the RBI levies on banks if they wish to borrow money. Basis Point - This is one hundredth of a percentage. This is usually used to indicate change in interest rates. Capital Gain - This is a profit or gain attained by a bank by sale of investments or properties.
The 5 Cs of credit or 5 Cs of banking are a common reference to the major elements of a banker's analysis when considering a request for a loan. Namely, these are Cash Flow, Collateral, Capital, Character, and Conditions.
| Abbreviation | What it stands for |
|---|---|
| IMO | International Money Order |
| INT | Interest |
| IPP | Internet Payment Platform |
| ISA | Individual Savings Account |
Repurchase agreement (RP)
The sale is a cash transaction while the return purchase is a forward transaction since it occurs at a future date. The seller/borrower pays interest to the buyer at a rate negotiated between the parties.
Some of the words related to BANKING are as follows: balance, bank statement, borrower, cardholder, credit limit, depositor, interest, overdraft, passbook, savings, telebanking, paying-in slip, withdrawal, lending rate, debit, commission, banker's order, credit, account (a/c), etc.
Concept 86: Four Cs (Capacity, Collateral, Covenants, and Character) of Traditional Credit Analysis. The components of traditional credit analysis are known as the 4 Cs: Capacity: The ability of the borrower to make interest and principal payments on time.
The seven 'Ps' are: product, price, promotion, place, people, processes and physical evidence.
The ethical banking movement includes: ethical investment, impact investment, socially responsible investment, corporate social responsibility, and is also related to such movements as the fair trade movement, ethical consumerism, and social enterprise.
Capacity refers to the borrower's ability to pay back a loan. This is one of a creditor's most important considerations when lending money.
What is the Z word for banking?
Zero-balance account (ZBA)
A bank checking account that can accept deposits and/or make disbursem*nts but that is always maintained at a zero balance. The zero balance is maintained by transferring just enough funds from or to a concentration account to offset each day's activity.
A POS or “Point of Sale” transaction is a purchase made with your Visa debit card and you are required to enter your PIN on a keypad. POS transactions post to your account immediately. On your statement, a POS transaction will show the amount and the address (and sometimes) the name of the merchant.
BRV – Bank receipt voucher. BTW – By the way.
Performance bank guarantee (PBG)
What kind of abbreviation do you folks use for the word transaction ? Traditionally, it is TX , but in our context it typically stands for transmit / transmission . I can spell out the full word, but would prefer not to. Wikipedia lists TXN , but that still seems ambiguous.
A reverse repurchase agreement conducted by the Desk, also called a “reverse repo” or “RRP,” is a transaction in which the Desk sells a security to an eligible counterparty with an agreement to repurchase that same security at a specified price at a specific time in the future.
From this broad term, banks (and financial institutions offering similar services) can be broken down into several smaller categories, including retail banks, savings and loan associations, community development banks and neobanks.
- Usability. Include words that are user-friendly. ...
- Digest the word. Spend time thinking about the word, defining it yourself, and using it in sentences. ...
- Don't get greedy. Don't include too many words.
As [1] summarised, credit scoring is functional in four scenarios denoted by the acronym 4R, namely Risk, Response, Revenue and Retention.
Although ranges vary depending on the credit scoring model, generally credit scores from 580 to 669 are considered fair; 670 to 739 are considered good; 740 to 799 are considered very good; and 800 and up are considered excellent.
What are the 4 types of bank accounts?
The four basic types are checking account, savings account, certificate of deposit and money market account. Each kind of account serves a different purpose. For instance, a checking account is geared toward covering everyday expenses, while a savings account is designed to help achieve short-term financial goals.
Payment Service Network (PSN) specializes in providing electronic bill presentment and payment (EBPP) services to a variety of business industries including utility, municipal and government, property management, funeral services, insurance, and financial.
Common ratios used are the net interest margin, the loan-to-assets ratio, and the return-on-assets (ROA) ratio. Net interest margin is used to analyze a bank's net profit on interest-earning assets like loans, while the return-on-assets ratio shows the per-dollar profit a bank earns on its assets.
A sound banking system has four essential aspects – liquidity, expansion, investments and loan policies, and the human factor. Let's look at these aspects in detail.
- Economic social governance (ESG) is becoming one of the most important considerations for financial institutions and banks alike. Below, FinTech Magazine runs through our Top 10 most ethical banks of 2023. ...
- Deutsche Bank. ...
- DBS Bank. ...
- Bank of America. ...
- Barclays. ...
- JPMorgan. ...
- HSBC. ...
- Citi.
