The terms used in banking business such as Doubtful Asset,Drop Box,Dumping,Down Payment etc.
This post explains about terms used in banking such as Digital Certificates and e-tokens ,Direct deposit,Direct Placement,Disbursement Voucher,Discount Book,Discretionary Order,Disinflation,Diversification,Documentary Credi,Doubtful Asset,Drop Box,Dumping,Down Payment 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
Digital Certificates and e-tokens (PM): Digital certificates are digital signatures to be obtained by PM from any Government Recognized Certifying Authority designated by RBI, on behalf of GAH. For added security, the certificates need to be installed in an e-token as per specifications approved. The digital certificate and token specifications needs to be SHA 2 (2048 bit) compliant. Without the Digital certificate and e-token, the GAH cannot log in to the NDS OM web based module. The Primary member will be responsible for obtaining/renewal and intimating revocation to RBI/CCIL of the Digital Certificate for such GAH users.
Direct Debit: A service that can be set up on your bank account to automatically make regular payments such as mortgage payments, insurance premiums, or credit card payments.
Direct deposit: A service that automatically transfers recurring deposits into your checking, savings or money market savings account. Deposits can include salary, pension, Social Security and Supplemental Security Income (SSI) benefits, or other regular monthly income.
Direct Financing: Provision of funds for investment to the ultimate user of funds.
Direct Placement: Selling a new issue not by offering it for sale publicly but by placing it with one or several institutional investors.
Direct Tax: A tax is said to be a direct tax when it is not intended to be shifted to anybody else. The person who pays it in the first instance is also excepted to bear it. Thus the impact and incidence of direct tax fall on the same person shifting of direct tax is not possible Income Tax is a example of direct tax.
Disbursement Voucher:A type of KFS document used solely to request a transfer of funds to a recipient outside the University. These documents can be used to generate either a check or an electronic funds transfer.
Disclaimer: Although the information in this brochure has been obtained from sources Bank of America believes to be reliable, we do not guarantee its accuracy or completeness, and such information may be summarized or condensed. This brochure is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security.
Disclosure: Information pertaining to an account’s services, fees and regulatory requirements.
Discount Bond: A bond selling below par, as interest in-lieu to the bondholders.
Discount Book: A book of mathematical tables used to determine the rate of return on a dollar bond for a specified discounted rate at a certain maturity. See Basis Book.
Discount Window: A facility provided by the Federal Reserve Bank.
Discount: The reduction in the price of a security; the difference between its selling price and its face value at maturity. A security may sell below face value in return for such things as prompt payment and quantity purchase. "At a discount" refers to a security selling at less than the face value, as opposed to "at a premium," when it sells for more than the face value.
DiscountL: The amount by which a bond or preferred stock sells below its par or face value. In foreign exchange market, it is the amount by which forward price is less than the spot price. In general, it means an extent of reduction in the price / value of the asset/ product which is given when it is sold.
Discretionary Order: A securities transaction offer placed by a broker who is empowered to act on behalf of a customer with regard to price and timing.
Dishonour of Cheque: Non-payment of a cheque by the paying banker with a return memo giving reasons for the non-payment. Default Risk: The possibility that a bond issuer will default ie, fail to repay principal and interest in a timely manner.
Disinflation: It refers to a process of bringing down prices moderately from their high level without any adverse impact on production and employment. Thus, disinflation is an anti-inflationary measure.
Dissaving: Dissaving occurs when expenditure exceeds income. Raising of loans or utilization of past accumulated savings takes place in such eventuality.
Diversification: The inclusion of a number of different investment vehicles in a portfolio in order to increase returns or be exposed to less risk.
Dividend: Dividend is the amount which the company distributes to shareholders when the profits of the company are calculated by the board of directors.
DNS - short for Domain Name System (or Service), an Internet service which translates domain names into IP addresses. We use domain names as they are alphabetic and therefore easier to remember. The Internet is based on IP addresses, so every time you use a domain name a DNS service must translate the name into the corresponding IP address.
Documentary Credit: Written undertaking by a bank on behalf of an importer authorizing an exporter to draw drafts on the bank up to a specified amount under specific terms and conditions. They are used to facilitate international trade. Also called Letter of Credit (LC).
Dollar Bond: A bond that is quoted and traded in dollars rather than on a yield basis. Not to be confused with the term US. dollar bonds, which is commonly used in the Eurobond market.
Domestic Transfer:A funds transfer with the receiving bank located in the U.S. or the correspondent bank is located in the U.S.
Don't Know: Also DK or DKed, as in "don't know the trade." An expression used to denote a lack of knowledge of a particular trade or transaction. Trades are often DKed due to conflicting instructions from one party or the other.
Double Exemption: Being exempt from both state and federal income taxes. Term used in relation to municipal bonds
Doubtful Asset: An asset would be classified as doubtful if it has remained in the substandard category for a period of 12 months. A loan classified as doubtful has all the weaknesses inherent in assets that were classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, - on the basis of currently known facts, conditions and values - highly questionable and improbable.
Down Payment: The amount of the purchase price of a home, a car, or other large item that is paid by you, using your money. The rest of the money is usually borrowed from a financial institution in the form of a mortgage or loan.
Downside Risk: The maximum amount that can be lost in an investment.
Drawdown:A transaction method that allows a customer to authorize one bank to wire in funds from a second bank. Use of drawdowns centralizes transaction decisions and cash flow to a single bank.
Drawee Bank: The bank on which the electronic transfer is drawn, the payor's bank.
Drop Box: A drop box is similar to a bank night depository box. Items placed in the drop box will be retrieved by the department and then be mailed to a designated Indiana University lockbox operation or accounts receivable processing location.
DRT: Debt Recovery Tribunal.
Due diligence: While finalizing documentation, the lead manager and the legal counsel conduct a thorough review of the borrowing entity with reference to the financials, legality, and all such matters relevant in a public offering of securities.
Dumping: Selling large amounts of securities without regard to the effect on the marketplace.Investment Vocabulary
Duration: A measure of bond price volatility, it captures both price and reinvestment risks to indicate how a bond will react to different interest rate environments.
Duration:Duration (Macaulay duration) measures the price volatility of fixed income securities. It is often used in the comparison of interest rate risk between securities with different coupons and different maturities. It is defined as the weighted average time to cash flows of a bond where the weights are nothing but the present value of the cash flows themselves. It is expressed in years. The duration of a fixed income security is always shorter than its term to maturity, except in the case of zero coupon securities where they are the same.
The above details describes about terms called in banking such as Digital Certificates and e-tokens ,Direct deposit,Direct Placement,Disbursement Voucher,Discount Book,Discretionary Order,Disinflation,Diversification,Documentary Credi,Doubtful Asset,Drop Box,Dumping,Down Payment 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 Depositary Bank, Depreciation, Derivative, Devaluation etc
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