Terms used in banking business such as Coverage Ratio,credit ,Credit Analysis,Credit Card,Credit default swap,Credit enhancement etc

 

The terms used in banking business such as Coverage Ratio,credit ,Credit Analysis,Credit Card,Credit default swap,Credit enhancement etc

 

 

This post explains about terms used in banking such as Core Banking Solutions,Cornering the Market,Corporate Governance,Corporation Tax, Correspondent,Cost income ratio (Efficiency ratio),Coupon Frequency,Coupon Yield,Coverage Ratio,credit ,Credit Analysis,Credit Card,Credit default swap,Credit enhancement 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

 

Co-operative Bank : An association of persons who collectively own and operate a bank for the benefit of consumers / customers, like Saraswat Co-operative Bank or Abhyudaya Co-operative Bank and other such banks.

 

Co-operative Society : When an association of persons collectively own and operate a unit for the benefit of those using its services like Apna Bazar Co-operative Society or Sahakar Bhandar or a Co-operative Housing Society.

 

Core Banking Solutions (CBS): Core Banking Solutions is a buzz word in Indian banking at present, where branches of the bank are connected to a central host and the customers of connected branches can do banking at any breach with core banking facility.

 

Core Sector: Economy needs basic infrastructure for accelerating development. Development of infrastructure industries like cement, iron and steel, petroleum, heavy machinery etc. can only ensure the development of the economy as a whole. Such industries are core sector industries.

 

Cornering the Market: Buying securities on a scale large enough to give a buyer control over the market price. This practice is illegal.

 

Corporate Banking: Banking services for large firms.

 

Corporate Bond: Long-term debt issued by private corporations.

 

Corporate Governance:A system by which organizations are directed and controlled. Board of directors are responsible for the governance of their organizations.

 

Corporate Tax:A tax on the profits of firms, as distinct from taxation of the incomes of their owners.

 

Corporation Tax: It is a tax on company's profit. It is a direct tax which is calculated on profits after interest payments and allowance (i.e., Capital allowance) have been deducted but before dividends are allowed for.

 

Correspondent Bank: A bank that is the depository for another bank. The correspondent bank accepts all deposits in the form of cash letters, and collects items for its bank depositor. The depository bank will render all banking services to its correspondent in the region in which the depository bank is located.

 

Correspondent Bank:A financial institution that regularly performs services for other banks.

 

Correspondent: A bank, securities firm, or other financial organization that regularly performs services for another in a market to which the other does not have direct access.Investment Vocabulary

 

Co-signer: This refers to someone who agrees to take responsibility for another person’s debt in the event payments aren’t made. Lenders may require a co-signer on a loan for a high-risk borrower with poor credit or a scanty credit history. Parents sometimes co-sign a child’s car or student loans. Such debts are reflected on both co-signers’ credit reports, and a default will affect each one.

 

Cost income ratio (Efficiency ratio): The cost income ratio reflects the extent to which non-interest expenses of a bank make a charge on the net total income (total income - interest expense). The lower the ratio, the more efficient is the bank. Formula: Non interest expenditure / Net Total Income * 100.

 

Cost-push Inflation: It arises due to an increase in production cost. Such type of inflation is caused by three factors : (i) an increase in wages, (ii) an increase in the profit margin and (iii) imposition of heavy taxation.

Coupon Frequency: The number of coupon payments per year.

 

Coupon Rate: The annual rate of interest on the bond’s face value that a bond’s issuer promises to pay the bondholder. It is the bond’s interest payment per dollar of par value.

 

Coupon Rate: The annual rate of interest that the issuer of a bond promises to pay to the holder of the bond.

 

Coupon Yield: The annual interest rate of a bond, divided by the bond's face value and stated as a percentage. This usually is not equal to the bond's current yield or its yield to maturity.

 

Coupons: Certificates attached to a bond that indicate the interest due on a payment date. The coupons are detached as they come due (usually semiannually) and are presented for payment of interest. The term Coupon also refers to the rate of interest the issuer promises to pay the issue holder.

 

Covenant: A pledge on the part of an issuer of a security to perform in a way that may benefit the security holders or to refrain from doing something that might be disadvantageous to them.

 

Cover: The spread between the winning bid/ offer and the next highest bid/next lowest offer. It is useful as a basis for evaluation of the bids.

 

Coverage Ratio: Equity minus net NPA divided by total assets minus intangible assets.

 

Coverage Ratio: The ratio of income available to pay a specific obligation versus the total amount obligated. This is a measure of a firm's financial stability.

 

Covered Warrants: Derivative call warrants on shares which have been separately deposited by the issuer so that they are available for delivery upon exercise.

 

Covering: Buying back a security previously sold short, in order to eliminate one's short position (see Short Sale). Also refers to the rate of return on a bondholder's investment.

 

CRAR:Capital to Risk-Weighted Assets Ratio.

 

CRAs:Credit Rating Agencies.

 

credit -- In business, buying or borrowing on the promise to repay at a later date. In any credit arrangement there is a creditor (a person, bank, store, or company to whom money is owed) and a debtor (the person who owes money). In bookkeeping, credit is a sum of money due to an individual or institution.

 

Credit Analysis: A critical review and appraisal of the economic and financial condition of a government agency or corporation. Evaluates the issuing entity's ability to meet its debt obligations, and the suitability of such obligations underwriting or investment.

 

credit bureau -- An agency that checks credit information and keeps a complete file on people who apply for and use credit.

 

Credit Card - A credit card is one of the systems of payments named after the small plastic card issued to users of the system. It is a card entitling its holder to buy goods and services based on the holder's promise to pay for these goods and services.

 

credit card -- A plastic card that gives access to a line of credit. Users are limited in how much they can charge, but they are not required to repay the full amount each month. Instead the balance (or "revolve") accrues interest with only a minimum payment due.

 

Credit Card Limit: The maximum amount you can purchase or available credit on your credit card.

 

Credit Card: A card that is used to make purchases or borrow money. Credit cards can be issued by financial institutions, retail stores, and other businesses and authorize you to repeatedly borrow money or buy products and services on credit, up to a certain limit. A minimum payment must be made on the balance each month. Interest is charged on any balance not paid each month.

 

Credit crunch: the term that has come into common usage to refer to a severe shortage of money or credit. The start of the global credit crunch can be dated to August 2007 when default rates on sub-prime loans in the US housing market rose to record levels.

 

Credit default swap: insurance-like contract that transfers credit risk. The buyer of the swap makes payments to the seller in exchange for protection in the event of a default. Banks and other institutions have used credit default swaps to cover the risk of mortgage holders defaulting.

 

Credit enhancement: These are the facilities offered to an SPV to cover the probable losses from the pool of securitized assets. It is a credit risk cover given by the originator or a third party and meant for the investors in any securitization process.

 

The above details describes about terms called in banking such as Core Banking Solutions,Cornering the Market,Corporate Governance,Corporation Tax, Correspondent,Cost income ratio (Efficiency ratio),Coupon Frequency,Coupon Yield,Coverage Ratio,credit ,Credit Analysis,Credit Card,Credit default swap,Credit enhancement etc. These 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 Controlling Shareholder,Convertible Security,Convexity,Converting Bank etc

 

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