Terms used in banking business such as Funding Limits Settings for Trades,Fundamental Analysis etc

 

The terms used in banking business such as Funding Limits Settings for Trades,Fundamental Analysis etc.

 

 

 

 

This post explains about terms used in banking such as First loss facility,Fiscal Policy,Fixed assets,Fixed-income Securities,Fixed Rate Loan or Mortgage,Floating-Rate Note/Bond,Foreign Currency Convertible Bond,Foreign Exchange Rate, Forfaiting, Freddie Mac,Funding Limits Settings for Trades,Fundamental Analysis 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

 

 

 

Firm: A term designating a buy or sell order made for a security that will not change in price for a specified period of time. It is sometimes accompanied by a recall within a specified time, such as five or ten minutes.

Firming of the Market: A period of improvement when security prices tend to rise or to stabilize at current levels.

 

First loss facility: First level of credit enhancement offered to an SPV as part of the process in bringing the securities issued by SPV to investment grade.

 

Fiscal Deficit: It is the amount of Funds borrowed by the government to meet the expenditures.

 

The terms used in banking  business such as Funding Limits Settings for Trades,Fundamental Analysis etcFiscal Policy: Fiscal policy is that part of government economic policy which deals with taxation, expenditure, borrowing, and the management of public debt in the economy. Fiscal policy primarily concerns itself with the flow of funds in the economy. Fiscal policy primarily concerns itself with the flow of funds in the economy. It exerts a very powerful influence on the working of economy as a whole.

 

Fiscal Year: An accounting or tax period comprising any 12-month period. The federal government's fiscal year starts October 1; the fiscal year of national chartered banks begins on January 1.

 

Fixed assets:Assets such as land, buildings, machinery or property used in operating a business that will not be consumed or converted into cash during the current accounting period.

 

Fixed Deposits – FDs are the deposits that are repayable on fixed maturity date along with the principal and agreed interest rate for the period. Banks pay higher interest rates on FDs than the savings bank account.

fixed rate -- An interest rate that does not vary over time.

 

Fixed Rate Bonds: Bonds bearing fixed interest payments until maturity date.

 

Fixed Rate Loan or Mortgage: A mortgage or other type of loan with an unchanging interest rate. The fixed rate is charged for a specific period of time.

 

Fixed Rate:A predetermined rate of interest applied to the principal of a loan or credit agreement.

 

Fixed-income Securities: Investment vehicles that offer a fixed periodic return.

 

Flat: The price at which a bond is traded, including consideration for all unpaid interest accrued. Bonds that are in default of interest or principal are traded flat. Income bonds, which pay interest only to the extent earned, are usually traded flat. With most other bonds, the buyer pays the market price plus interest accrued since the last coupon or payment date, which is referred to as"and interest."

 

Float:The time between the date when a check is deposited to an account and the date the funds become available.

 

Floating Rate Bonds: Bonds bearing interest payments that are tied to current interest rates.

 

Floating Supply: The total amount of securities available for immediate purchase from dealers and other investors who wish to sell.

 

Floating-Rate Note/Bond: A note or bond with a fluctuating interest rate. The rate is adjusted periodically according to a predetermined formula, based upon specific market indicators. Thus, it provides the investor with a rate of return comparable to the rate prevailing in the current market environment.

 

Foreign Banks: Banks incorporated outside India but operating in India and regulated by the Reserve Bank of India (RBI),. e..g., Barclays Bank, HSBC, Citibank, Standard Chartered Bank, etc.

 

Foreign Currency Convertible Bond: A bond issued in foreign currency abroad giving the investor the option to convert the bond into equity at a fixed conversion price or as per a pre-determined pricing formula.

 

foreign currency surcharge -- A fee charged when a card purchase utilizes a foreign currency and it must be converted into the cardholder’s home currency.

 

Foreign Exchange Rate:The value of a nation’s currency in terms of another nation’s currency.

 

Foreign Exchange:Various instruments used to settle payments for transactions between individuals or organizations using different currencies (e.g. notes, cheques, etc.)

 

Foreign Trade:The exchange of goods between two nations.

 

Forfaiting: A form of export finance in which the forfaiter accepts, at a discount from the exporter, a bill of exchange or promissory note (note) from the exporter’s customer; the forfaiter in due course collects payment of the debt. Such notes are normally guaranteed by the customer’s bank. Maturities are normally up to three years.

 

Forgery: when a material alteration is made on a document or a Negotiable Instrument like a cheque, to change the mandate of the drawer, with intention to defraud.

 

Forward Collection: The transfer of a check by a Bank to a Paying Bank for payment. That is, the Bank forwards the check to another Bank directly or through an intermediary.

 

Forward Contract: A contract in which one party agrees to buy, and the other to sell, a specified product at a specified price on a specified date in the future.

 

Forward Cover: Forward purchase or sale of foreign currency to offset an anticipated future cash flow.

 

Fraud: Frauds have been classified as under, based mainly on the provisions of the Indian Penal Code (a) Misappropriation and criminal breach of trust. (b) Fraudulent encashment through forged instruments, manipulation of books of account or through fictitious accounts and conversion of property. (c) Unauthorised credit facilities extended for reward or for illegal gratification. (d) Negligence and cash shortages. (e) Cheating and forgery. (f) Irregularities in foreign exchange transactions. (g) Any other type of fraud not coming under the specific heads as above.

 

Freddie Mac: Trade name for the Federal Home Loan Mortgage Corporation (FHLMC).

 

Free and Open Market: A market in which supply and demand indicate prices for securities.

 

Free: Delivery of securities upon presentation of a signed receipt. Payment is received by debiting or crediting accounts or by check, wire transfer, or other means.

 

FRNs: Floating Rate Notes.

 

FTSE 100/250 index: the index of the 100/250 largest companies on the UK stock market.

 

Full Faith and Credit: Indicator that the unconditional guarantee of the United States government backs the repayment of a debt.Investment Vocabulary

 

Fundamental Analysis: Research to predict stock value that focuses on such determinants as earnings and dividends prospects, expectations for future interest rates and risk evaluation of the firm.

 

Funded debt: Generally, a short-term debt that has been converted into long-term debt funding.

 

Funding Limits Settings for Trades: Funding limits for trades represent the net aggregate settlement consideration amount up to which the concerned GAH can accumulate net long fund positions arising out of trades concluded on NDS-OM Web. This control shall be set for every GAH at the GAH user level. This limit constitutes a trading limit which shall get reinstated at the beginning of every trading session for every GAH.

 

Funding Volatility Ratio: Liquid assets [as above] to current and savings deposits - (Higher the ratio, the better).

 

Future Value of an Annuity: The amount to which a stream of equal cash flows that occur in equal intervals will grow over a period of time when it is placed in an account paying compound interest.

 

The above details describes about terms called in banking such as First loss facility,Fiscal Policy,Fixed assets,Fixed-income Securities,Fixed Rate Loan or Mortgage,Floating-Rate Note/Bond,Foreign Currency Convertible Bond,Foreign Exchange Rate, Forfaiting, Freddie Mac,Funding Limits Settings for Trades,Fundamental Analysis 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 Federal Reserve System,Fertility Rate, FFELP,Fill or Kill,Firewall etc

 

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