Terms used in banking business such as Indemnifier, Indebtedness,Indirect financing,Indenture etc

 

The terms used in banking business such as Indemnifier, Indebtedness,Indirect financing,Indenture etc

 

 

 

 

 

This post explains about terms used in banking such as Hacker ,Hard market,Human Development Index,Held for Trading,Held Till Maturity,Holder in due course,Holding company,Hypothecation,Identity theft,Immediate or Cancel Order, Indemnifier, Indebtedness,Indirect financing,Indenture 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

 

 

Hacker - a person who uses a computer to break into other computer systems in order to steal, change or destroy information. To protect yourself from hackers you should install firewall software on your computer and keep it up to date.

 

 

Haircut:The difference between the market value of a security and its value when used as collateral. The haircut is intended to protect a collateral taker from losses due to declines in collateral values.

 

 

Hard market: a scarcity of a product or service for purchase, as opposed to a soft market, in which the product or service is readily available.

 

 

The terms used in banking  business such as Indemnifier, Indebtedness,Indirect financing,Indenture etcHDI: HDI (Human Development Index) is a composite index measuring average achievement in three basic dimensions of human life–a long and healthy life, knowledge and a decent standard of living.

 

 

Hedge fund: a private investment fund that uses a range of strategies to maximise returns, including hedging.

 

 

Hedge: A combination of two or more securities into a single investment position for the purpose of reducing or eliminating risk.

 

 

Hedge: strategy offsetting the possibility of loss by holding two contrary positions in different financial instruments.

 

 

Hedging: A method used by traders to minimize losses resulting from price fluctuations in the money market. The method involves counterbalancing a present sale or purchase with the purchase or sale of a similar or different security, usually for delivery at some future date. The desired result is that the profit or loss on a current sale or purchase will be offset by the loss or profit on the future purchase or sale.

 

 

Held for Trading(HFT): Securities where the intention is to trade by taking advantage of short-term price / interest rate movements.

 

 

Held Till Maturity(HTM): The securities acquired by the banks with the intention to hold them up to maturity.

 

 

High Cost Deposit: Deposits accepted above card rate (for the deposits) of the bank.

 

 

Holder in due course : A person who receives a Negotiable Instrument for value, before it was due and in good faith, without notice of any defect in it, he is called holder in due course as per Negotiable Instrument Act. In the earlier example if my friend lends some money to me on the basis of the cheque, which I have given to him for encashment, he becomes holder-in-due course.

 

 

Holder: Holder means any person entitled in his own name to the possession of the cheque, bill of exchange or promissory note and who is entitled to receive or recover the amount due on it from the parties. For example, if I give a cheque to my friend to withdraw money from my bank,he becomes holder of that cheque. Even if he loses the cheque, he continues to be holder. Finder cannot become the holder.

 

Holding company: A company which controls another company, usually by owing more than half of its shares.

 

 

HTTP - Hyper Text Transfer Protocol is the world wide web protocol which performs the request and retrieve functions of a server. Commonly seen as the first part of a website address.

 

 

Hybrid debt capital instruments:In this category, fall a number of capital instruments, which combine certain characteristics of equity and certain characteristics of debt. Each has a particular feature, which can be considered to affect its quality as capital. Where these instruments have close similarities to equity, in particular when they are able to support losses on an ongoing basis without triggering liquidation, they may be included in Tier II capital.

 

 

Hypothecation: An agreement that pledges securities to guarantee a loan without transferring title to the securities.

 

Hypothecation: Charge against property for an amount of debt where neither ownership nor possession is passed to the creditor. In pledge, possession of property is passed on to the lender but in hypothecation, the property remains with the borrower in trust for the lender.

 

ICD: Inter-Corporate Deposit.

 

Identification: When a person provides a document to a bank or is being identified by a person, who is known to the bank, it is called identification. Banks ask for identification before paying an order cheque or a demand draft across the counter.

 

Identity theft - when someone else steals your personal information without your knowledge. They may then use your details to commit fraud.

 

Image Exchange: An exchange of some or all of a digitized image (or images) of a check.

 

Image: A digital representation of all or part of an original check or substitute check.

 

Immediate or Cancel Order: An order at market price (or some other limited price) that is to be executed in whole, or in part, as soon as it is received. The portion that is not transacted is considered canceled.

Import Duty: Import duty is a tax on imports imposed on an ad-valorem basis i.e., fixed in the form of a percentage on the value of the commodity imported.

 

Imports: Goods and services that a country buys from other countries.

 

In and Out: Describes the purchase and sale of the same security within a short period of time to take advantage of price fluctuations.

 

Inactive account:A bank account in which there have not been any transactions for an extended period of time (does not include Direct Deposits). In some cases, when there has been no activity in the account within a period specified by state law (generally at least 3 years), the law requires the bank to turn the account over (escheat) to the state as unclaimed property.

 

Income Bonds: Bonds on which the payment of interest is due only when the issuer has attained sufficient income. There is no guaranteed return. In some cases, unpaid interest may accumulate as a claim against the issuer when the principal comes due.

 

Income Tax: The amount of money you pay to the government each year, based on your income.

 

Income: The amount of money an individual receives in a particular time period.

 

Indebtedness: The obligation assumed by a borrower, guarantor, or endorser to repay funds that have been or will be paid out on the borrower's behalf.

 

Indemnifier: When a person indemnifies or guarantees to make good any loss caused to the lender from his actions or others' actions.

 

Indemnifying Bank: A Bank that is providing an indemnity with respect to a substitute check.

 

Indemnity: Indemnity is a bond where the indemnifier undertakes to reimburse the beneficiary from any loss arising due to his actions or third party actions.

 

Indenture: A written agreement used in connection with a security issue. The document sets the maturity date, interest rate, security, and other terms for the issue holder, the issuer, and (when appropriate) the trustee.

 

index -- A published interest rate that is used to determine the actual rate charged with a variable interest rate account. The prime rate, published in the Wall Street Journal, is often used as the index.

Index Fund: A mutual fund that holds shares in proportion to their representation in a market index, such as the S&P 500.

 

Indirect financing: The process by which deficit spending units obtain funds from financial intermediaries who, in turn, them from ultimate surplus spending units.

 

Indirect Tax: Indirect tax is that tax which is levied on goods or services produced or purchased. Indirect taxes are those which are demanded from one person in the expectation and intention

 

The above details describes about terms called in banking such as Hacker ,Hard market,Human Development Index,Held for Trading,Held Till Maturity,Holder in due course,Holding company,Hypothecation,Identity theft,Immediate or Cancel Order, Indemnifier, Indebtedness,Indirect financing,Indenture 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 Guaranteed Investment Certificate,Guild Socialism etc

 

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