Terms used in banking business such as Interest Warrant,introductory rate,Investment bank,Internal Rate of Return etc

 

The terms used in banking business such as Interest Warrant,introductory rate,Investment bank,Internal Rate of Return etc.

 

 

This post explains about terms used in banking such as Indorsement,Industry life cycle,Inflation,Initial Public Offering,Insider Trading,Insufficient Funds,Intangible assets,Interest Rate,Interest Warrant,introductory rate,Investment bank,Internal Rate of Return 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

 

 

Indorsement: Information used to record the transfer of a negotiable instrument from one holder to another. Indorsements are placed on the check by payee(s), by the Bank of First Deposit, and by Banks subsequently handling the check. Electronically associated indorsements may also accompany electronic check records without being physically placed on the check. Indorsements are used to track the routing of the check in electronic or paper form. Also called: Endorsement.

 

Industry life cycle:A conceptual model of the different stages of an industry’s development.1. Development stage: New product, high investment needs, losses. 2. Growth stage: Consumer acceptance, expanding sales, high profitability, ease of entry. 3. Maturity stage: Sales growth slows, excess capacity, prices and profits decline – key period for merger strategy;4. Decline stage: Substitute products emerge, sales growth declines, pressure for mergers to survive.

 

Inflation Premium: A premium for anticipated inflation that investors require in addition to the pure rate of interest.

 

 

 

The terms used in banking  business such as Interest Warrant,introductory rate,Investment bank,Internal Rate of Return etcInflation: A situation of a steady and sustained rise in general prices is usually known as inflation. Inflation is a state in which the value of money is falling i.e., prices are rising.

 

Initial Public Offering (IPO): An event where a company sells its shares to the public for the first time. The company can be referred to as an IPO for a period of time after the event.

Initiating Bank: The bank responsible for sending the transfer.

 

Initiator: The individual responsible for communicating funds transfer information to the financial institution. An Office of the Treasurer staff member is the initiator for most electronic funds transfers.

 

Inside Information: Non-public knowledge about a company possessed by its officers, major owners, or other individuals with privileged access to information.

 

Insider dealing: criminal offence made by trading on knowledge of non-public information.

 

Insider Trading: The illegal use of non-public information about a company to make profitable securities transactions.

 

Insolvent: Insolvent is a person who is unable to pay his debts as they mature, as his liabilities are more than the assets . Civil Courts declare such persons insolvent. Banks do not open accounts of insolvent persons as they cannot enter into contract as per law.

 

Insolvent: The condition when one is unable to pay one’s debt obligations when due.

 

Insufficient Funds: When an account balance is inadequate to cover a cheque that has been written and presented for payment.

 

Insurance: A contract whereby one party agrees to pay a sum to another party for a fee (premium) in the event that the latter suffers a particular loss. The person or firm that undertakes the risk is the insurer. The party desiring to be protected from loss is the insured party.

 

Intangible assets: Assets that cannot be touched. Examples are goodwill and patent rights.

 

Interest - The amount paid or charged on money over time. If you borrow money interest will be charged on the loan. If you invest money, interest will be paid (where appropriate to the investment).

 

interest -- The fee paid for the use of money. Interest may be paid, for example, by an individual to a bank for credit card use, or by a bank to an individual for holding a savings account. Interest is expressed in terms of annual percentage rate (APR).

 

Interest Rate: When you are borrowing money, interest rate refers to the price lenders charge you when you use their money for a specified period of time. The rate charged is usually expressed as a percentage of the total amount borrowed. When you are depositing money, interest rate refers to the amount of money a deposit will earn over the length of time it is deposited. The rate earned is usually expressed as a percentage of the total amount deposited.

 

Interest Rate: The interest payable each year on borrowed funds, expressed as a percentage of the principal.

 

Interest rate:The percentage of interest paid on an interest-bearing account, such as savings, CDs and some checking accounts; also, the percentage charged on a loan or line of credit. Different types of accounts and loans pay or charge different rates of interest. See”original interest rate.”

 

Interest rates: lenders demand interest on loans. The rate is dependent on future inflation expectations, as well as the ‘real interest rate’ – the rental cost of money. Borrowers might pay extra on top in order to compensate lenders for the credit risk.

 

Interest Warrant: When cheque is given by a company or an organization in payment of interest on deposit , it is called interest warrant. Interest warrant has all the characteristics of a cheque.

 

Interest: Compensation paid or to be paid for the use of money. The rate of interest is generally expressed as an annual percentage.

 

Interest-bearing account:An account that earns interest.

 

Internal Capital Adequacy Assessment Process (ICAAP): In terms of the guidelines on BASEL II, the banks are required to have a board-approved policy on internal capital adequacy assessment process (ICAAP) to assess the capital requirement as per ICAAP at the solo as well as consolidated level. The ICAAP is required to form an integral part of the management and decision-making culture of a bank. ICAAP document is required to clearly demarcate the quantifiable and qualitatively assessed risks. The ICAAP is also required to include stress tests and scenario analyses, to be conducted periodically, particularly in respect of the bank's material risk exposures, in order to evaluate the potential vulnerability of the bank to some unlikely but plausible events or movements in the market conditions that could have an adverse impact on the bank's capital.

 

Internal Rate of Return (IRR): The rate of discount at which the net present value of an investment is zero.

 

International Banking: involves more than two nations or countries. If an Indian Bank has branches in different countries like State Bank of India, it is said to do International Banking.

 

International Transfer: A funds transfer with the receiving bank located outside the U.S.

 

 

Internet Banking - Online banking (or Internet banking) allows customers to conduct financial transactions on a secure website operated by the bank.

 

Internet- or Telephone-Initiated Payments: A transaction that is initiated over the Internet or via phone, which is processed as an electronic debit, usually an ACH debit. Some users categorize a payment initiated via Internet or telephone as an electronic check, even though the debit was not initiated by a source document (a paper check).

 

Intrinsic Value: The difference of the exercise price over the market price of the underlying asset.

 

Introduction: Banks are careful in opening any account for a customer as the prospective customer has to be introduced by an existing account holder or a staff member or by any other person known to the bank for opening of account. If bank does not take introduction, it will amount to negligence and will not get protection under law.

 

introductory rate -- A temporarily low interest rate, used as incentive to entice a consumer to sign up for credit. After the introductory period, the rate will increase to the standard percentage.

 

Investment Adviser: A person who carries on a business which provides investment advice with respect to securities and is registered with the relevant regulator as an investment adviser.

 

Investment bank: a bank providing financial services for governments, companies or very wealthy individuals, as compared to commercial banks, which provide loans and savings accounts to the general public.

 

The above details describes about terms called in banking such as Indorsement,Industry life cycle,Inflation,Initial Public Offering,Insider Trading,Insufficient Funds,Intangible assets,Interest Rate,Interest Warrant,introductory rate,Investment bank,Internal Rate of Return 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 Indemnifier, Indebtedness,Indirect financing,Indenture etc

 

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