Terms used in banking business such as Controlling Shareholder,Convertible Security,Convexity,Converting Bank etc


The terms used in banking business such as Controlling Shareholder,Convertible Security,Convexity,Converting Bank etc


This post explains about terms used in banking such as Collateral Note,Collecting Bank,Collected balance,Combined balance,Commercial Paper,Commercial real estate, Compound interest,Consumer Protection Act,Controlling Shareholder,Convertible Security,Convexity,Converting Bank 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


collateral -- Anything that a bank accepts as security against the debtor's not repaying a loan. If the debtor fails to repay the loan, the bank is allowed to keep the collateral. Collateral is most commonly in the form of real estate (e.g., a home).


Collateral Note: A promissory note that specifically mentions the collateral pledged by the borrower as security for the repayment of a loan or other obligation.


Collateral: A specific asset pledged against possible default on a bond. Mortgage bonds are backed by claims on property. Collateral trusts bonds are backed by claims on other securities. Equipment obligation bonds are backed by claims on equipment.


Collateral: Property (real, personal or otherwise) pledged as security for a loan. Also, any supplementary promise of payment, such as a guarantee.


The terms used in banking  business such as Controlling Shareholder,Convertible Security,Convexity,Converting Bank etcCollateral: Securities or other property that a borrower pledges as security for the repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.


Collateral: This is typically an asset used to secure a loan. If you fail to make payments on the debt, the lender may be able to seize the property used as collateral, such as a residence financed with a mortgage or a car purchased with an auto loan.


Collected balance: The balance in a deposit account, not including items that have not yet been paid, or collected. See “Account balance.”


Collecting Bank: Any Bank handling a check for collection except the Paying Bank.


Collecting Banker: Also called receiving banker, who collects on instruments like a cheque, draft or bill of exchange, lodged with himself for the credit of his customer's account.


Collectivism: Collectivism is a belief that nation's interest is superior to individual interest. This is the collective thinking of the society and polity national leaders and also communist opine the theory of collection.


Collusion: Producers of an industry reduce competition among themselves to raise their profits. They fix the price themselves with a clear understanding in this regard. This understanding among different firms is called collusion.


Collusion: A secret agreement between two or more persons to defraud another person of his or her right in order to achieve an unlawful objective.


Combined balance:The total funds you have in all of your linked deposit accounts, such as savings, checking and CDs. For some checking accounts, the combined balance determines whether the monthly maintenance fee can be avoided.


commercial bank -- Nongovernmental financial institutions. Sometimes called full-service banks because they provide a wide range of services, such as checking and savings accounts, credit and loan arrangements, and safety deposit box rentals. Commercial banks also sell and redeem U.S. savings bonds.


Commercial Credit Risk:The risk of loss from providing credit to corporate counter-parties. Extension of credit can take the form of direct loans and contingencies/ guarantees.


Commercial Paper (CP): Issue of short-term notes, without any underwriting, representing a promise to repay the amount at a specified future date.


Commercial Paper: Short-term and unsecured promissory notes issued by corporations with very high credit standings.


Commercial Paper: Short-term, unsecured, negotiable promissory notes issued by businesses.


Commercial real estate:commercial real estate is defined as "fund based and non-fund based exposures secured by mortgages on commercial real estates (office buildings, retail space, multi-purpose commercial premises, multi-family residential buildings, multi-tenanted commercial premises, industrial or warehouse space, hotels, land acquisition, development and construction etc.)"


Commission: Broker's or agent's fee for purchasing or selling securities for a client.


Commitment fee: A fee charged by a bank in respect of an unused balance of a line of credit or sanction of loan designed to offset the bank’s cost of keeping the funds available.


Commodities: goods such as oil, petrol, metal or grain.


Common Stock: Equity investment representing ownership in a corporation; each share represents a fractional ownership interest in the firm.


Communism:Communism is a political and economic system in which the state makes the major economic decision State owns the bulk of capital assets. Responsibility for production and distribution lies with the state in this system.


Compound interest:Interest that is calculated on both the accumulated interest and the principal balance in the account. The more frequently interest is compounded, the higher the effective yield.

Conglomerate:A combination of unrelated firms; any combination that is not vertical or horizontal


Consolidated Debt: A debt in which all of the separate entities of an organization are equally responsible for repayment of the debt.


Consumer Account: An account used primarily for personal, family and household purposes.


Consumer Price Index (CPI):An index that measure movements in the average price of products and services.


Consumer Protection Act: It is implemented from 1987 to enforce consumer rights through a simple legal procedure. Banks also are covered under the Act. A consumer can file complaint for deficiency of service with Consumer District Forum for amounts upto Rs.20 Lacs in District Court, and for amounts above Rs.20 Lacs to Rs.1 Crore in State Commission and for amounts above Rs.1 Crore in National Commission.


Consumer: An individual who writes a check drawn on a consumer account.


Contract Note: A note which must accompany every security transaction which contains information such as the dealer’s name (whether he is acting as principal or agent) and the date of contract.


Controlling Shareholder: Any person who is, or group of persons who together are, entitled to exercise or control the exercise of a certain amount of shares in a company at a level (which differs by jurisdiction) that triggers a mandatory general offer, or more of the voting power at general meetings of the issuer, or who is or are in a position to control the composition of a majority of the board of directors of the issuer.


Conversion: Transforming a payment initiated by paper check that has not been negotiated to an electronic payment.


Convertible Bond: A bond with an option, allowing the bondholder to exchange the bond for a specified number of shares of common stock in the firm. A conversion price is the specified value of the shares for which the bond may be exchanged. The conversion premium is the excess of the bond’s value over the conversion price.


Convertible Security: Bond or preferred stock which is convertible into equity shares generally at the option of the holder.


Convertible: A feature of certain bonds, debentures, or preferred stocks that allows them to be exchanged for another class of securities. A convertible bond contains a provision that permits conversion to the issuer's common stock at some fixed exchange ratio.


Converting Bank: The Bank that has truncated the original check or substitute check to a digital image. Preferred term: Truncating Bank.


Convexity: This represents the rate of change of duration. It is the difference between actual price of a bond and the price estimated by modified duration.


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The above details describes about terms called in banking such as Collateral Note,Collecting Bank,Collected balance,Combined balance,Commercial Paper,Commercial real estate, Compound interest,Consumer Protection Act,Controlling Shareholder,Convertible Security,Convexity,Converting Bank 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 Cheque Truncation, Cheque,Claimant Bank,Clearing House Funds,Client Head etc


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