Terms used in banking business such Nonnegotiable,Non-Check Disbursement,NRE Accounts,Non-Resident, Off-Balance Sheet etc

 

The terms used in banking business such Nonnegotiable,Non-Check Disbursement,NRE Accounts,Non-Resident, Off-Balance Sheet etc.

 

 

This post explains about terms used in banking such as Negotiation,Net Asset Value,Net Interest Cost,Net Interest Income ,Net National Product ,Net Present Value,New Issue Market,New York Stock Exchange,Nice decade,No Par Value,Non Performing Assets,Non-bank ATM,Nonnegotiable,Non-Check Disbursement,NRE Accounts,Non-Resident,Off Balance Sheet Exposure,Off-Balance Sheet etc.These terms used in international business are arranged in alphabetical order and you may add more information about terms used in export business at the end of this article, if you wish.

 

The terms used in banking business

 

Negotiation: In the context of banking, negotiation means an act of transferring or assigning a money instrument from one person to another person in the course of business.

 

Net Asset Value: The underlying value of a share of stock in a particular mutual fund; also used with preferred stock.

 

Net Change: The difference in the closing price of a security from one day to the next.

 

Net Debt: The gross debt of a state or governmental agency, not including sinking-fund accumulations and all self-supporting debt.

 

Net Interest Cost (NIC): The average interest rate an issuer must pay in order to borrow funds over the life of a bond.

 

Net Interest Income ( NII): The NII is the difference between the interest income and the interest expenses.

 

Net Interest Margin: Net interest margin is the net interest income divided by average interest earning assets.

 

Net National Product (NNP): When depreciation is deducted from GNP i.e., Gross National Product, we get Net National Product (NNP).

 

Net Non-Interest Income: The differential (surplus or deficit) between non-interest income and non-interest expenses as a percentage to average total assets.

 

Net NPA: Gross NPA - (Balance in Interest Suspense account + DICGC/ECGC claims received and held pending adjustment + Part payment received and kept in suspense account + Total provisions held).

 

Net operating profit: Operating profit before provision minus provision for loan losses, depreciation in investments, write off and other provisions.

 

Net Present Value: Capital budgeting criterion, which compares the present value of cash inflows of a project discounted at the risk-adjusted cost of capital to the present value of investment outlays discounted at the risk-adjusted cost of capital.

 

Net Worth: The total amount of your assets, including the money in your accounts, your investments, and personal property such as home, car or business, minus any outstanding debts you have.

 

Net Yield: See Yield.

 

New Issue Market: The market for new issues of securities, as opposed to the secondary market, in which securities that have already been issued are sold.

 

New Issue: The first offering of a security.

 

New York Stock Exchange: A corporation operated by a board of directors responsible for setting policy, supervising exchange and member activities, listing securities, overseeing the transfer of members' seats on the exchange, and judging whether an applicant is qualified to be a specialist.

 

Nice decade: the period of non-inflationary constant expansion that followed the Government’s move to give the Bank of England the freedom to set interest rates independently, soon after the Labour landslide in 1997. In May 2008 Mervyn King, the governor of the Bank of England at the time, warned, ‘For the time being at least, the Nice decade is behind us.’

 

No Par Value: Describes a security issued with no stated face or par value.

 

No-Litigation Certificate: A statement issued by the bond attorney and the issuer's counsel that no legal suits are pending against the bond issue, nor is there any knowledge of threatened litigation that might affect the validity of the bonds.

 

Non Performing Assets (NPA): An asset, including a leased asset, becomes non performing when it ceases to generate income for the bank.

 

Non-bank ATM:An ATM or cash machine that provides ATM cardholders with access to their accounts, but is owned and operated by an independent bank or financial institution. Fees generally apply to cash withdrawals at non-bank ATMs and they don’t generally accept deposits.

 

Noncallable: Describes a security that does not contain a call provision. See Call Provision.

 

Non-Check Disbursement: A type of KFS document used to initiate payments by methods other than check issuance. Repetitive outgoing electronic funds transfers and debits to University bank accounts are handled through use this type of document.

 

Non-Fund Based Limits: Non-Fund Based Limits are those type of limits where banker does not part with the funds but may have to part with funds in case of default by the borrowers, like guarantees, letter of credit and acceptance facility.

 

Nonlegals: Securities that do not conform to the requirements of a state's legal list of lawful investments for savings banks and trust funds. See Legal List.

 

Nonnegotiable: Describes a security whose title or ownership is not transferable through simple delivery or endorsement.

 

Non-Recourse Discounting: Purchase from the seller of accepted term Bills of Exchange at a discount to allow for funding of the advance from the discount date until the maturity date of the bills. When the discount is provided on a non-recourse basis the financing bank has no recourse to the seller in the event of non-payment by the buyer or the buyers’ bank.

 

Non-Resident Accounts: Accounts of non-resident Indian citizens opened and maintained as per R.B.I. Rules.

 

 

Non-Resident: A person who is not a resident of India is a non-resident.

 

Notary Public: A Lawyer who is authorized by Government to certify copies of documents .

 

NPA Account: If interest and instalments and other bank dues are not paid in any loan account within a specified time limit, it is being treated as non-performing assets of a bank.

 

NRE Accounts – Non-Resident External accounts are the ones in which NRIs remit money in any permitted foreign currency and the remittance is converted to Indian rupees for credit to NRE accounts. The accounts can be in the form of current, saving, FDs, recurring deposits. The interest rates and other terms of these accounts are as per the RBI directives.

 

NSE: National Stock exchange of India Limited.

 

Obligation: The responsibility to perform some act or pay a sum of money when due.

 

OD: Overdraft

 

Odd Lot: A securities holding that contains less than the normal trading unit. Compare Round Lot.

 

Odd-Lot Dealer: A broker or dealer who buys or sells securities in quantities smaller than the normal trading unit.

 

Off Balance Sheet Exposure: Off-Balance Sheet exposures refer to the business activities of a bank that generally do not involve booking assets (loans) and taking deposits. Off-balance sheet activities normally generate fees, but produce liabilities or assets that are deferred or contingent and thus, do not appear on the institution's balance sheet until and unless they become actual assets or liabilities.

 

Off Balance Sheet Items: Those items which affect the financial position of a business concern, but do not appear in the Balance Sheet E,g guarantees, letters of credit . The mention "off Balance Sheet items" is often found in Auditors Reports or Directors Reports.

 

Off-Balance Sheet: Includes all banking transactions that do not appear on the balance sheet of a bank as an asset or as a debt. Includes all commitments for which a cash flow arises conditional on a specific event. For instance, a loan guarantee will create an obligation only if there is a default. Derivatives are a form of off-balance sheet transactions.

 

The above details describes about terms called in banking such as Negotiation,Net Asset Value,Net Interest Cost,Net Interest Income ,Net National Product ,Net Present Value,New Issue Market,New York Stock Exchange,Nice decade,No Par Value,Non Performing Assets,Non-bank ATM,Nonnegotiable,Non-Check Disbursement,NRE Accounts,Non-Resident,Off Balance Sheet Exposure,Off-Balance Sheet etcThese phrases may help importers and exporters on their day to day business activities. The readers can also add more information about terms used in overseas trade below this post.Terms used in banking business such as Laundering,Money Market,Money Market Securities etc

 

 

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