Terms used in banking business such as Over the Counter,Overdraft Protection Transfer Fee,Overdraft Item and NSF etc


The terms used in banking business such as Over the Counter,Overdraft Protection Transfer Fee,Overdraft Item and NSF etc.


This post explains about terms used in banking such as Offering Price,Official Statement,Oligopoly,On-Us Field,Open-end (Mutual) Fund,Operational Risk,Option Contract,Original Check,Over the Counter,Overdraft Protection Transfer Fee,Overdraft Item and NSF 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


Offer for Sale: An offer to the public by, or on behalf of, the holders of securities already in issue.


Offer for Subscription: The offer of new securities to the public by the issuer or by someone on behalf of the issuer.


The terms used in banking  business such as Over the Counter,Overdraft Protection Transfer Fee,Overdraft Item and NSF etcOffer: The price at which an owner is willing to sell a security.


Offering Price: The price at which members of an underwriting syndicate for a new issue will offer securities to investors.


Offering: The means by which securities are sold to buyers. Usually states the price and terms.


Official Statement: Document prepared by or for the issuer that gives detailed security and financial information about the issue.


Offset: The buying or selling of a security in an exact amount to counterbalance the sale or purchase of a similar type of security.Upon completion of an offset transaction, the initiator's position remains unchanged.


Okun’s Law: Arthur Okun presented an empirical relationship between cyclical movements in GNP and unemployment. Okun found that an annual 2•5% increase in the rate of real growth above the trend growth results in a 1% decrease in the rate of unemployment. This relationship is known as Okun’s Law.


Oligopoly: Oligopoly is that form of imperfect competition in which there are only a few firms in the industry (or group) producing either homogeneous products or may be having product differentiation in a given line of production.


Online Banking: Banking through internet site of the bank which is made interactive.


Online Banking:A service that allows an account holder to obtain account information and manage certain banking transactions via personal computer or mobile device.


On-Line: A computer system where input data are processed as received and output data are transmitted as soon as they become available to the point where they are required.


On-Us Field: The MICR print band area between the closing amount symbol and the opening routing symbol. Arrangement of the on-us field is variable, specified by the financial institution on which the check is written. It may include such information as the user's account number, a consecutive number, and a transaction or processing code.


Open Economy: Open economy is that economy which is left free and the government imposes no restrictions on trade with areas outside that economy.


Open Offer: An offer to current holders of securities to subscribe for securities whether or not in proportion to their existing holdings.


Open Order: An order to buy or sell a security at a designated price, usually within a certain time limit. See Good 'till Canceled Order.


Open-end (Mutual) Fund: There is no limit to the number of shares the fund can issue. The fund issues new shares of stock and fills the purchase order with those new shares. Investors buy their shares from, and sell them back to, the mutual fund itself. The share prices are determined by their net asset value.


Open-End Credit: Commonly referred to as a Line of Credit. May be used repeatedly up to a certain limit; also called a Charge Account or Revolving Credit.


Open-End Lease: Often, referred to as a finance lease. A lease that may involve a balloon payment based on the value of the property when it is returned.


Operating Cycle: The length of time taken by a firm to produce its final product, sell it to customers, and collect proceeds of the sale in cash.


Operating Lease: Short-term, cancelable lease.


Operating profit before provisions: Net of total income and total operating expenses.


Operating synergy: Combining two or more entities results in gains in revenues or cost reductions because of complementarities or economies of scale or scope.


Operational Risk:The revised BASEL II framework offers the following three approaches for estimating capital charges for operational risk: 1) The Basic Indicator Approach (BIA): This approach sets a charge for operational risk as a fixed percentage ("alpha factor") of a single indicator, which serves as a proxy for the bank's risk exposure. 2) The Standardised Approach (SA): This approach requires that the institution separate its operations into eight standard business lines, and the capital charge for each business line is calculated by multiplying gross income of that business line by a factor (denoted beta) assigned to that business line. 3) Advanced Measurement Approach (AMA): Under this approach, the regulatory capital requirement will equal the risk measure generated by the banks' internal operational risk measurement system. In India, the banks have been advised to adopt the BIA to estimate the capital charge for operational risk and 15% of average gross income of last three years is taken for calculating capital charge for operational risk.


Opportunity Cost: The rate of return that can be earned on the best alternative investment. In general, the gain or return on the next best investment opportunity or the next best use of resources, which is forgone by putting the resources to a given use.


Option Contract: A contract that gives the buyer the right, but not the obligation, to buy or sell an underlying asset by (or on) a specific date for a specific price. For this right the purchaser pays a premium.


Option: A formal contract which grants the holder of the option the right to buy or sell a certain quantity of an underlying interest or asset at a stipulated price within a specific period of time.


Optional Redemption: A right to retire all or part of an issue prior to the stated maturity during a specified period of years, often at a premium. The right can be exercised at the option of the issuer.


Options: similar to futures, but provide the buyer with the right rather than the obligation to complete the contract.


Original Check: Original check means the first paper check issued with respect to a particular payment transaction.


Original interest rate:Rate assigned when a CD account is opened. The original interest rate is listed on your CD account receipt and statement.


Original Issue Discount: A municipal bond issued at a dollar price less than par that qualifies for special treatment under federal tax law. Under that law, the difference between the issue price and par is treated as tax-exempt income rather than capital gain, if the bonds are held to maturity.


Over the Counter: A securities market in which dealers negotiate directly, as opposed to an organized securities exchange auction system. The market for U.S. government and municipal bonds is primarily an over-the-counter market.


Overbought/Oversold: Describes a security or a market that has undergone a sharp rise or fall due to vigorous buying or selling. Being overbought or oversold indicates that such buying or selling may have left prices temporarily too high or too low.


Overdraft - This is when a person has a minus figure in their account. It can be authorized (agreed to in advance or retrospect) or unauthorized (where the bank has not agreed to the overdraft either because the account holder represents too great a risk to lend to in this way or because the account holder has not asked for an overdraft facility).


Overdraft Item and NSF: Overdraft Item is when you do not have enough available funds in your account to cover an item and we authorize and pay the item and overdraw your account. An NSF:Returned Item is when we decline and return the item unpaid. See your Deposit Agreement and Disclosures for additional information.


Overdraft Protection Transfer Fee: An Overdraft Protection Transfer fee occurs whenever funds must be provided to cover a transaction that overdraws your checking account. When a debit clears that exceeds the funds available in your account, money will be transferred from the linked Overdraft Protection account.


Overdraft protection: Overdraft Protection links your eligible Bank of America checking account to another Bank of America account-such as savings, credit card, eligible second checking account, or line of credit-and automatically transfers available funds to cover purchases, prevent returned checks and declined items when you don't have enough money in your checking account. You can apply for Overdraft Protection by visiting a banking center or calling us at 1.800.432.1000 between Monday-Friday 7 a.m.-10 p.m. and Saturday-Sunday 8 a.m.-5 p.m. ET.


The above details describes about terms called in banking such as Offering Price,Official Statement,Oligopoly,On-Us Field,Open-end (Mutual) Fund,Operational Risk,Option Contract,Original Check,Over the Counter,Overdraft Protection Transfer Fee,Overdraft Item and NSF 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 Nonnegotiable,Non-Check Disbursement,NRE Accounts,Non-Resident, Off-Balance Sheet etc



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