The terms used in banking business such as Debenture,debit card,Debt Coverage,Debt capital markets,Debt Service etc.
This post explains about terms used in banking such as Current Maturity,Custodial account,Custody of Securities,Customer Access Number,Cyclical Unemployment,D/P (documents against payment),Day Loan,Death Duty,Debenture,debit card,Debt Coverage,Debt capital markets,Debt Service 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
Current liabilities: Short-term liabilities, due to be paid in less than one year, such as bank overdrafts, money owed to suppliers and employees.
Current Maturity: The amount of time left until an obligation matures. For example, a oneyear bill issued nine months ago has a current maturity of three months.
Current Yield: A return measure that indicates the amount of current income a bond provides relative to its market price. It is shown as: Coupon Rate divided by Price multiplied by 100%.
CUSIP: The Committee on Uniform Security Identification Procedures, which was established under the auspices of the American Bankers Association to develop a uniform method of identifying municipal, U.S. government, and corporate securities.Investment Vocabulary
Custodial account: An account created for the benefit of a minor (a person under the age of 18 or 21 depending on state law) with an adult as the account's custodian.
Custodial Fund:A designated sum of money granted to an individual or a department for purposes that cannot be achieved through normal procedures. Common custodial funds are petty cash funds, change funds, and revolving funds.
Custodian: An entity, usually a bank that actually holds the receivables as agent and bailee of the trustee.
Custody of Securities: Registration of securities in the name of the person to whom a bank is accountable, or in the name of the bank’s nominee; plus deposition of securities in a designated account with the bank’s bankers or with any other institution providing custodial services.
Custom Duty: Custom duty is a duty that is imposed on the products received from exporting nations of the world. It is also called protective duty as it protects the home industries.
Customer Access Number (CAN) - is the unique number allocated to a Customer by us which identifies the Customer and Nominated Accounts to us and, when used in conjunction with a Personal Access Code and User ID (if any), enables Users to access Internet Banking or EasyPhone Banking.
Customer: A person who maintains any type of account with a bank is a bank customer. Consumer Protection Act has a wider definition for consumer as the one who purchases any service for a fee like purchasing a demand draft or a pay order. The term customer is defined differently by Laws, softwares and countries.
Cyclical Unemployment: It is that phase of unemployment which appears due to the occurrence of the downward phase of the trade cycle. Such an employment is reduced or eliminated when the business cycle turns up again.
D/A (documents against acceptance): Refer to shipping documents presented to a bank on a collection basis to be passed to the buyer when he or she accepts a bill of exchange. The bank holds the bill of exchange until it ends (maturity) when they ask the buyer to pay the seller.
D/P (documents against payment): Refer to shipping documents presented to a bank on a collection basis to be passed to the buyer (drawee) when payment is made.
Dated Date, or Issue Date: The date of a municipal bond issue from which the bond holder is entitled to receive interest, eventhough the bonds may actually be delivered at some other date.
Day Loan: A one-day loan granted for the purchase of securities. When the securities are delivered, they are pledged as collateral to secure a regular call loan for a few hours of the business day in order to finance the securities.
Day Order: An order placed to buy or sell securities on a specific day. If the order is not executed, it expires at the end of that trading session.
DCF: Discounted Cash Flow.
Dealer Loans: See Broker or Dealer Loans.
Dealer Market: The market for trading government securities.
Dealer: An individual or firm that ordinarily acts as a principal in security transactions. Typically, dealers buy for their own account and sell to a customer from their inventory. The dealer's profit is determined by the difference between the price paid and the price received.
Dear Money: Dear money is that money which can only be borrowed at a high rate of interest. In dear money policy, bank rate and other rates of interest are high and as a result borrowing becomes expensive. Dear money policy is deliberate policy which is adopted by the monetary authorities to check inflation in the economy.
Death Duty: It is a direct tax which is imposed on the estate of deceased person. Death duty or Death Tax is a form of personal tax on property which is levied when property passes from one person to other at the time of death of the former.
Death Rate: Death rate signifies the number of deaths in a year per thousand of the population. It is mostly known as crude death rate. Life expectancy is important determinant of death rate.A country having high life expectancy will have a high crude death rate.
Debenture: A bond secured only by the general credit of the issuer rather than by a specific lien on property, as is a mortgage bond. Agency bonds are frequently called debentures.
debit -- A bookkeeping term for a sum of money owed by an individual or institution; a charge deducted from an account.
debit card -- A banking card enhanced with ATM (automated teller machine) and POS (point-of-sale) features that can be used to purchase goods and services electronically. The card replaces cash or checks. Transactions are deducted from the cardholder's checking account either immediately or within one to three days. Depending upon the type of card, a debit card may require the user to sign his or her name or enter a PIN (personal identification number) into special equipment.
Debit card: A plastic card that deducts money from the designated Bank of America checking account to pay for goods or services. It can be used anywhere Visa or MasterCard debit cards are accepted and no interest is charged. A debit card can also be used at ATMs to withdraw cash.
Debit Card: A card assigned by your financial institution that is linked to your bank account. It can be used to make cash withdrawals from an Automated Teller Machine (ATM) or pay for items at retails outlets instead of using cash. Once you approve the transaction by entering your PIN, the amount is electronically deducted from your account and paid to the merchant or retailer.
Debit: A decrease in a deposit account’s balance, such as occurs when a check posted to the account. See also “credit.”
Debt capital markets (DCM): investment bank division responsible for issuance and pricing of debt securities (eg bonds).
Debt Coverage: The margin of safety for payment of debt, reflecting how much the earnings for a certain period of time exceed the debt payable during that same period. Normally used in connection with revenue bonds and corporate bonds.
Debt Instrument: A written pledge to repay debt, such as a bill, a note, or a bond.
Debt Limit, or Debt Ceiling: The maximum amount of debt that can legally be acquired under the debt-incurring power of a state or municipality.
Debt Service (Total): The sum of principal repayments and interest actually paid in foreign currency, goods and services on longterm debt (having maturity of more than one year), interest paid on shortterm debt and repayments to IMF.
Debt Service: Interest and principal obligation on an outstanding debt. This is usually for a one-year period.
The above details describes about terms called in banking such as Current Maturity,Custodial account,Custody of Securities,Customer Access Number,Cyclical Unemployment,D/P (documents against payment),Day Loan,Death Duty,Debenture,debit card,Debt Coverage,Debt capital markets,Debt Service 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 Current Exposure Method,Currency Board,Cumulative Dividends etc
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