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Definition of Bank
Money in a bank cheque account, the difference between receipts and payments.
A bank machine, sometimes referred to as an automated teller machine (ATM).
A form of organization commonly used by foreign banks to enter the U.S. market. An agency
Notes issued by states and municipalities to obtain interim financing for
The 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.
A convention used for quoting bids and offers for treasury bills in terms of annualized
A draft addressed to a bank.
A guaranteed form of payment which is issued in amounts over $5,000.
An international bank headquartered in Basel, Switzerland, which
Line of credit granted by a bank to a customer.
Money owed to the bank in a cheque account where payments exceed receipts.
The process of taking the balances from the bank statement and the general ledger and making adjustments so that they agree.
A comparison between the cash position recorded on a company’s
A computer message system linking major banks. It is used not for effecting payments, but as a
A short-term credit investment created by a non-financial firm and guaranteed by a
A 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.
State of being unable to pay debts. Thus, the ownership of the firm's assets is transferred from
The reorganization or liquidation of a firm that cannot pay its debts.
Bankruptcy cost view
The argument that expected indirect and direct bankruptcy costs offset the other
The risk that a firm will be unable to meet its debt obligations. Also referred to as default or insolvency risk.
The argument that expected bankruptcy costs preclude firms from being financed entirely
A 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
A privately owned, profit-seeking firm that accepts deposits and makes loans.
System whereby customers make payments to a regional collection center which transfers funds to
A merchant banking subsidiary set up by several banks that may or may not be of the
Eligible bankers' acceptances
In the BA market, an acceptance may be referred to as eligible because it is
A 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 Bank
A federal institution that lends to a wide array of federal credit agencies funds it
Federal Home Loan Banks
The institutions that regulate and lend to savings and loan associations. The
Federal Reserve Banks
The twelve district banks in the Federal Reserve System.
Foreign banking market
That portion of domestic bank loans supplied to foreigners for use abroad.
Fractional Reserve Banking
A 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 Bank
International 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
Financial intermediaries who perform a variety of services, including aiding in the sale of
Middleman 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.
A legal proceeding for liquidating or reorganizing a business.
A British term for a bank that specializes not in lending out its own funds, but in providing
A 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 banks
banks 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
A 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 banking
The purchasing of loans originated by others, with the servicing rights
A multilateral development finance agency created by the 1944 Bretton Woods, New
The International bank for Reconstruction and Development, an international organization that provides long-term loans to developing countries to improve their infrastructure.
Rule 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
This 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
The restricting of liability holders from collection efforts of collateral seizure, which is
An intercompany loan channeled through a bank.
A plan by U.S. Treasury Secretary James Baker under which 15 principal middle-income debtor
In the words of Warren Buffet, Bill Bane Sr., is, "a great American and one of the last real traders
A banker or trader's positions.
The 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
Site 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.
The large clearing banks that dominate deposit taking and short-term lending in the domestic
A bank term loan that calls for no amortization.
Call money rate
Also called the broker loan rate , the interest rate that banks charge brokers to finance
Agency banks established by Canadian banks in the U.S.
Canadian Deposit Insurance Corporation
Better 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 view
The view that issuing debt is generally valuable but that the firm's
The value of assets that can be converted into cash immediately, as reported by a company. Usually
Currency, coin, and funds on deposit that are available for immediate withdrawal without
Cash and equivalents
The value of assets that can be converted into cash immediately, as reported by a
Temporary investments of currently excess cash in short-term, high-quality
Ratio 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.
Communication barrier between financiers (investment bankers) and traders. This barrier is
Clearing House Automated Payments System (CHAPS)
A computerized clearing system for sterling funds
A bank that ranks just below a lead manager in a syndicated Eurocredit or international bond
The risk that a foreign debtor will be unable to pay its debts because of business events,
A fee paid to a commercial bank in return for its legal commitment to lend funds that have
An excess balance that is left in a bank to provide indirect compensation for loans
Conditional sales contracts
Similar to equipment trust certificates except that the lender is either the
Corporate processing float
The time that elapses between receipt of payment from a customer and the
costs of financial distress
Costs arising from bankruptcy or distorted business decisions before bankruptcy.
The ability of the bankruptcy court to confirm a plan of reorganization over the objections of
On your bank statement, 'credit' represents funds that you have deposited into your account. The opposite of a credit is a debit.
A decline in the ability or willingness of banks to lend.
Creditor Proof Protection
The 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.
Amounts receivable by the business within a period of 12 months, including bank, debtors, inventory and prepayments.
Amounts due and payable by the business within a period of 12 months, e.g. bank overdraft, creditors and accruals.
Overnight, collateralized loan made to a dealer financing his position by borrowing from a
A 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.
IOUs created through loan-type transactions - commercial paper, bank CDs, bills, bonds, and
A set of transactions (also called a debt-equity swap) in which a firm buys a country's dollar bank
Debtor in possession
A firm that is continuing to operate under Chapter 11 bankruptcy process.
New debt obtained by a firm during the Chapter 11 bankruptcy process.
Delivery versus payment
A transaction in which the buyer's payment for securities is due at the time of
A bank deposit that can be withdrawn on demand, such as a deposit in a checking account.
Demand line of credit
A bank line of credit that enables a customer to borrow on a daily or on-demand basis.
The process whereby the banking system transforms a dollar of reserves into several dollars of money supply.
Central bank switching of government deposits between the central bank and commercial banks.
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