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Financial Terms | |
Bank |
Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
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Definition of BankBankMoney in a bank cheque account, the difference between receipts and payments.
Related Terms:ABM (automated banking machine)A bank machine, sometimes referred to as an automated teller machine (ATM). Agency bankA form of organization commonly used by foreign banks to enter the U.S. market. An agency BAN (Bank anticipation notes)Notes issued by states and municipalities to obtain interim financing for Bank collection floatThe time that elapses between when a check is deposited into a bank account and when the funds are available to the depositor, during which period the bank is collecting payment from the payer's bank. Bank discount basisA convention used for quoting bids and offers for treasury bills in terms of annualized Bank draftA draft addressed to a bank. bank draftA guaranteed form of payment which is issued in amounts over $5,000. ![]() Bank for International Settlements (BIS)An international bank headquartered in Basel, Switzerland, which Bank lineLine of credit granted by a bank to a customer. Bank overdraftMoney owed to the bank in a cheque account where payments exceed receipts. Bank reconciliationThe process of taking the balances from the bank statement and the general ledger and making adjustments so that they agree. Bank reconciliationA comparison between the cash position recorded on a company’s Bank wireA computer message system linking major banks. It is used not for effecting payments, but as a Banker's acceptanceA short-term credit investment created by a non-financial firm and guaranteed by a Bankers AcceptancesA bill of exchange, or draft, drawn by the borrower for payment on a specified date, and accepted by a chartered bank. Upon acceptance, the bill becomes, in effect, a postdated certified cheque. BankruptcyState of being unable to pay debts. Thus, the ownership of the firm's assets is transferred from ![]() bankruptcyThe reorganization or liquidation of a firm that cannot pay its debts. Bankruptcy cost viewThe argument that expected indirect and direct bankruptcy costs offset the other Bankruptcy riskThe risk that a firm will be unable to meet its debt obligations. Also referred to as default or insolvency risk. Bankruptcy viewThe argument that expected bankruptcy costs preclude firms from being financed entirely Central BankA public agency responsible for regulating and controlling an economy's monetary and financial institutions. It is the sole money-issuing authority. Clearing House Interbank Payments System (CHIPS)An international wire transfer system for high-value Commercial BankA privately owned, profit-seeking firm that accepts deposits and makes loans. concentration bankingSystem whereby customers make payments to a regional collection center which transfers funds to Consortium banksA merchant banking subsidiary set up by several banks that may or may not be of the Eligible bankers' acceptancesIn the BA market, an acceptance may be referred to as eligible because it is EurobankA bank that regularly accepts foreign currency denominated deposits and makes foreign currency loans. ![]() Export-Import Bank (Ex-Im Bank)The U.S. federal government agency that extends trade credits to U.S. Federal Financing BankA federal institution that lends to a wide array of federal credit agencies funds it Federal Home Loan BanksThe institutions that regulate and lend to savings and loan associations. The Federal Reserve BanksThe twelve district banks in the Federal Reserve System. Foreign banking marketThat portion of domestic bank loans supplied to foreigners for use abroad. Fractional Reserve BankingA banking system in which banks hold only a fraction of their outstanding deposits in cash or on deposit with the central bank. International Bank for Reconstruction and Development - IBRD or World BankInternational bank for Reconstruction and Development makes loans at nearly conventional terms to countries for projects of high International Banking Facility (IBF)International banking Facility. A branch that an American bank Investment bankFinancial intermediaries who perform a variety of services, including aiding in the sale of Investment BankerMiddleman between a corporation issuing new securities and the public. The middleman buys the securities issue outright and then resells it to customers. Also called an underwriter. Legal bankruptcyA legal proceeding for liquidating or reorganizing a business. Merchant bankA British term for a bank that specializes not in lending out its own funds, but in providing Merchant BankA financial institution that engages in investment banking functions, such as advising clients in mergers and acquisitions, underwriting securities and taking debt or equity positions. Money center banksbanks that raise most of their funds from the domestic and international money markets, relying less on depositors for funds. PIBOR (Paris Interbank Offer Rate)The deposit rate on interbank transactions in the Eurocurrency market Prepackaged bankruptcyA bankruptcy in which a debtor and its creditors pre-negotiate a plan or Society for Worldwide Interbank Financial Telecommunications (SWIFT)A dedicated computer network to support funds transfer messages internationally between over 900 member banks worldwide. Wholesale mortgage bankingThe purchasing of loans originated by others, with the servicing rights World BankA multilateral development finance agency created by the 1944 Bretton Woods, New World BankThe International bank for Reconstruction and Development, an international organization that provides long-term loans to developing countries to improve their infrastructure. Absolute priorityRule in bankruptcy proceedings whereby senior creditors are required to be paid in full acid test ratio (also called the quick ratio)The sum of cash, accounts receivable, and short-term marketable American Depositary Receipts (ADRs)Certificates issued by a U.S. depositary bank, representing foreign AssignmentThis is the legal transfer on one person's interest in an insurance policy to another person or entity, such as to a bank to qualify for a loan Automated Clearing House (ACH)A collection of 32 regional electronic interbank networks used to Automated Clearing House (ACH)A banking clearinghouse that processes direct Automatic stayThe restricting of liability holders from collection efforts of collateral seizure, which is Back-to-back financingAn intercompany loan channeled through a bank. Baker PlanA plan by U.S. Treasury Secretary James Baker under which 15 principal middle-income debtor BaneIn the words of Warren Buffet, Bill Bane Sr., is, "a great American and one of the last real traders BookA banker or trader's positions. Book-entry securitiesThe Treasury and federal agencies are moving to a book-entry system in which securities are not represented by engraved pieces of paper but are maintained in computerized records at the Bretton WoodsSite of a 1944 international monetary conference at which the postwar fixed exchange rate system was structured and the International Monetary Fund (IMF) and World bank were created. British clearersThe large clearing banks that dominate deposit taking and short-term lending in the domestic Bullet loanA bank term loan that calls for no amortization. Call money rateAlso called the broker loan rate , the interest rate that banks charge brokers to finance Canadian agenciesAgency banks established by Canadian banks in the U.S. Canadian Deposit Insurance CorporationBetter known as CDIC, this is an organization which insures qualifying deposits and GICs at savings institutions, mainly banks and trust companys, which belong to the CDIC for amounts up to $60,000 and for terms of up to five years. Many types of deposits are not insured, such as mortgage-backed deposits, annuities of duration of more than five years, and mutual funds. Capital market imperfections viewThe view that issuing debt is generally valuable but that the firm's CashThe value of assets that can be converted into cash immediately, as reported by a company. Usually CashCurrency, coin, and funds on deposit that are available for immediate withdrawal without Cash and equivalentsThe value of assets that can be converted into cash immediately, as reported by a Cash-equivalent itemsTemporary investments of currently excess cash in short-term, high-quality Cash RatioRatio of cash and cash equivalents to liabilities; in the case of a bank, the ratio of cash to total deposit liabilities. Certificate of deposit (CD)Also called a time deposit, this is a certificate issued by a bank or thrift that Certificate of Deposit (CD)A bank deposit that cannot be withdrawn for a specified period of time. See also term deposit. Chinese wallCommunication barrier between financiers (investment bankers) and traders. This barrier is Clearing House Automated Payments System (CHAPS)A computerized clearing system for sterling funds ComangerA bank that ranks just below a lead manager in a syndicated Eurocredit or international bond Commercial riskThe risk that a foreign debtor will be unable to pay its debts because of business events, Commitment feeA fee paid to a commercial bank in return for its legal commitment to lend funds that have Compensating balanceAn excess balance that is left in a bank to provide indirect compensation for loans Conditional sales contractsSimilar to equipment trust certificates except that the lender is either the Corporate processing floatThe time that elapses between receipt of payment from a customer and the costs of financial distressCosts arising from bankruptcy or distorted business decisions before bankruptcy. CramdownThe ability of the bankruptcy court to confirm a plan of reorganization over the objections of creditOn your bank statement, 'credit' represents funds that you have deposited into your account. The opposite of a credit is a debit. Credit CrunchA decline in the ability or willingness of banks to lend. Creditor Proof ProtectionThe creditor proof status of such things as life insurance, non-registered life insurance investments, life insurance RRSPs and life insurance RRIFs make these attractive products for high net worth individuals, professionals and business owners who may have creditor concerns. Under most circumstances the creditor proof rules of the different provincial insurance acts take priority over the federal bankruptcy rules. Current assetsAmounts receivable by the business within a period of 12 months, including bank, debtors, inventory and prepayments. Current liabilitiesAmounts due and payable by the business within a period of 12 months, e.g. bank overdraft, creditors and accruals. Dealer loanOvernight, collateralized loan made to a dealer financing his position by borrowing from a debit cardA card which enables you to directly access your bank account when paying for purchases. So instead of paying in cash or with a credit card, a debit card allows the specified amount of the purchase to be electronically debited, or withdrawn, from your bank account. See Interac Direct Payment for an explanation of the actual procedures that you follow at the point of sale (POS) terminal to use your debit card. Debt securitiesIOUs created through loan-type transactions - commercial paper, bank CDs, bills, bonds, and Debt swapA set of transactions (also called a debt-equity swap) in which a firm buys a country's dollar bank Debtor in possessionA firm that is continuing to operate under Chapter 11 bankruptcy process. Debtor-in-possession financingNew debt obtained by a firm during the Chapter 11 bankruptcy process. Delivery versus paymentA transaction in which the buyer's payment for securities is due at the time of Demand DepositA bank deposit that can be withdrawn on demand, such as a deposit in a checking account. Demand line of creditA bank line of credit that enables a customer to borrow on a daily or on-demand basis. Deposit CreationThe process whereby the banking system transforms a dollar of reserves into several dollars of money supply. Deposit SwitchingCentral bank switching of government deposits between the central bank and commercial banks. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |