Terms used in banking business such as Encryption,Endorsement in Full,Entrepreneur,Equity capital markets,Escrow,Exchange Rate etc

 

The terms used in banking business such as Encryption,Endorsement in Full,Entrepreneur,Equity capital markets,Escrow,Exchange Rate etc.

 

 

 

This post explains about terms used in banking such as Earnings per Share,Earnings Credit,E-Banking,Electronic Fund Transfer,Electronic Check Presentment , Encryption,Endorsement in Full,Entrepreneur,Equity capital markets,Escrow,Exchange Rate 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

 

 

Earning Yield:The ratio of earning per share to market price of the share.

 

Earnings Credit: An interest rate on collected balances in a commercial account using account analysis. The interest rate is typically tied to government issued securities. The earnings credit is not deposited to the account as interest earned. It is solely used to offset account analysis fees. Any earnings credit above the total fees for a month is forfeited.

 

Earnings per Share (EPS): The amount of annual earnings available to common stockholders as stated on a per share basis.

 

The terms used in banking  business such as Encryption,Endorsement in Full,Entrepreneur,Equity capital markets,Escrow,Exchange Rate etcEarnings Yield: The ratio of earnings to price (E/P). The reciprocal is price earnings ratio (P/E).

 

Earnings: Total income Sum of interest/discount earned, commission, exchange, brokerage and other operating income.

 

E-Banking : E-Banking or electronic banking is a form of banking where funds are transferred through exchange of electronic signals between banks and financial institution and customers ATMs, Credit Cards, Debit Cards, International Cards, Internet Banking and new fund transfer devices like SWIFT, RTGS belong to this category.

 

E-Banking: It is a type of banking in which we can conduct financial transactions electronically. RTGS, Credit cards, Debit cards etc come under this category.

 

ECBs:External Commercial Borrowings.

 

ECGC: Export Credit Guarantee Corporation.

 

Economic Integration: Economic integration appears when two or more nations coordinate themselves and their economies are linked up. It may exhibit itself in the form of free trade area or a full economic union. EEC is an example of economic integration.

 

Effective rate of interest:The percentage rate of return on an annual basis, reflecting the effect of intra-year compounding.

 

EFT - (Electronic Fund Transfer): EFT is a device to facilitate automatic transmission and processing of messages as well as funds from one bank branch to another bank branch and even from one branch of a bank to a branch of another bank. EFT allows transfer of funds electronically with debit and credit to relative accounts.

 

Either or Survivor: Refers to operation of the account opened in two names with a bank. It means that any one of the account holders have powers to withdraw money from the account, issue cheques, give stop payment instructions etc. In the event of death of one of the account holder, the surviving account holder gets all the powers of operation.

 

Electronic Check (e-check): Used to refer to several types of electronic transactions that debit a checking account. An electronic check is not a substitute check.

 

Electronic Check Presentment (ECP): An electronic record governed by check law, created from the entire MICR line on a check and suitable for posting to a customer’s account. ECP transmissions may stand alone or may be followed by or accompanied by check images or paper checks. ECP transmissions are governed by check law.

 

Electronic Commerce (E-Commerce): E-Commerce is the paperless commerce where the exchange of business takes place by Electronic means.

 

Electronic Funds Transfer (EFT): A fast, secure way to electronically transfer funds. EFTs can be performed using computers, ATMs, over the phone or by wire transfers.

 

Emergency cash:A service provided by Visa to Bank of America personal debit card customers. In the case of emergency (theft, etc.) replacement cash can be delivered to you directly or to a convenient location anywhere in the world, 24 hours a day, 365 days a year.

 

Encryption - the conversion of data into a form, called a ciphertext, that cannot be easily understood by unauthorised people. Decryption is the process of converting encrypted data back into its original form so it can be understood.

 

Encryption: The process of encoding electronic transaction information, to allow secure transmission of data over the Internet.

 

endorse -- To sign, as the payee, the back of a check before cashing, depositing, or giving it to someone else. The first endorsement must be made by the payee to authorize the transaction. Later endorsements may be made by whomever receives the check.

 

Endorsement in Full: Where the name of the endorsee or transferee appears on the instrument while making endorsement.

 

Endorsement: When a Negotiable Instrument contains, on the back of the instrument an endorsement, signed by the holder or payee of an order instrument, transferring the title to the other person, it is called endorsement.

 

Engel's Law: This law was formulated by Ernst Engel. This law states that, with given taste and preference, the portion of income spend on food diminishes as income increases. According to this law, smaller a person's income, the greater the proportion of it that he will spend on food and vice versa.

 

Entrepreneur: A person who conceives, starts and manages a business.

 

EOUs:Export-Oriented Units.

 

Equitable mortgage:A type of mortgage under which one still owns the property which is security for the mortgage. The owner can occupy or live in the property.

 

Equity Call Warrants: Warrants issued by a company which give the holder the right to acquire new shares in that company at a specified price and for a specified period of time.

 

Equity capital markets (ECM): investment bank division responsible for structuring and pricing the issuance of equities, such as at IPO (Initial Public Offering – flotation of the company on the stock exchange).

 

Equity: The value of a business after all debts and other claims are settled. Also, the amount of cash a business owner invests in a business and/ or the difference between the price for which a property could be sold and the total debts registered against it.

 

Equity: Ownership of the company in the form of shares of common stock.

 

Escrow Account: An account for which a bank acts as an uninterested third party (custodian / depository) to ensure compliance with the terms of the deal between two parties only upon the fulfillment of some stated conditions. The account becomes operative on the occurrence of the stated event. Banks hold such accounts in which funds accumulate to pay taxes, insurance on mortgage property, etc.

 

Escrow: This describes money or a financial instrument held by a third party on behalf of two others engaged in a transaction. The most common example is during the purchase of a home — escrow is used when a buyer and seller sign a purchase agreement, and the money involved is held in escrow to be delivered when certain conditions are fulfilled. Lenders often use escrow accounts to hold money from mortgage borrowers for property tax and insurance payments, both to make covering those obligations easier and to ensure they’re paid.

 

Estate Duty:It is a tax which is levied on the estate of a decreased person. It is also known as death duty. The ownership of state changes hands only after the payments of the estate duty. It is an progressive tax in nature.

 

Exchange Rate Risk:The risk that changes in currency exchange rates may have an unfavourable impact on costs or revenues of economic units.

 

Exchange Rate:The rate at which one currency may be exchanged for another.

 

Excise duties:Duties levied on items manufactured within the country and paid by the manufacturer.

 

Excise Duty: It is a tax which is imposed on certain indigenous production (e.g., petroleum products, cigarettes etc.) of the country. Excise duty may be imposed either to raise revenue or to check the consumption of the commodities on which they are imposed. Excise duty is progressive in nature.

 

The above details describes about terms called in banking such as Earnings per Share,Earnings Credit,E-Banking,Electronic Fund Transfer,Electronic Check Presentment , Encryption,Endorsement in Full,Entrepreneur,Equity capital markets,Escrow,Exchange Rate 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 Doubtful Asset,Drop Box,Dumping,Down Payment etc

 

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