Terms used in banking such as Automation,Availability Policy,Available Balance etc



The terms used in banking such as Automation,Availability Policy,Available Balance etc.



This post explains about terms used in banking such as Automation,Availability Policy,Available Balance,Available for Sale,Average daily balance,Balance of Payment,Balance Sheet,balance transfer fee,Balloon Maturity,Bank Debits,Bank of First Deposit,Bank Rate 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


Automation: Automation means the use of machinery & technology to replace the labour’s work. Automation increases the demand of skilled workers. Unskilled and semiskilled workers are reduced as a result of automation.


Availability Date: Bank's policy as to when funds deposited into an account will be available for withdrawal.


Availability Policy: Bank's policy as to when funds deposited into an account will be available for withdrawal.


Available Balance: The portion of a customer’s account balance having no restrictions from the bank and available for immediate withdrawals.


Available Balance: The balance of an account less any hold, uncollected funds, and restrictions against the account.


The terms used in banking such as Automation,Availability Policy,Available Balance etcAvailable Credit: The difference between the credit limit assigned to a cardholder account and the present balance of the account.


Available for Sale(AFS): The securities available for sale are those securities where the intention of the bank is neither to trade nor to hold till maturity. These securities are valued at the fair value which is determined by reference to the best available source of current market quotations or other data relative to current value.


Average cost: (Interest expended on deposits and borrowings/Average interest bearing liabilities)*100


Average daily balance:The sum of all the daily account balances during an accounting period (usually a monthly statement cycle) divided by the number of days in the same period. May be used to determine whether a monthly maintenance fee applies or whether your account qualifies for special services or discounts. See “minimum daily balance.”


Average Life: The average holding period of a mortgage-backed security. It is calculated mathematically by weighting the time the investment is outstanding by the amount of principal returned each month.

Average Yield: (Interest and discount earned/average interest earning assets)*100


Averaging Up or Down: The practice of purchasing the same security at various prices to arrive at a higher or lower averagecost.


Baby Bonds: Bonds whose face value is usually $100 or less.


Back-end value: Amount paid to the remaining shareholders in the second stage of a two-tier or partial tender offer.


balance-- An outstanding amount of money. In banking, balance refers to the amount of money in a particular account. In credit, balance refers to the amount owed.


Balance of Payment: Balance of payment of a country is a systematic record of all economic transactions completed between its residents and the residents of remaining world during a year. In other words, the balance of payment shows the relationship between the one country's total payment to all other countries and its total receipts from them. Balance of payment is a comprehensive term which includes both visible and invisible items. Balance of payment not only include visible export and imports but also invisible trade like shipping, banking, insurance, tourism, royalty, payments of interest on foreign debts.


Balance of Trade:Balance of trade refers to the total value of a country's export commodities and total value of imports commodities. Thus balance of trade includes only visible trade i.e., movement of goods (exports and imports of goods). Balance of trade is a part of Balance of payment statement.


Balance Sheet: Statement of assets and liabilities of a company at any particular time. The assets on a balance sheet will always equal the liabilities plus the owner’s equity.


Balance Sheet: Balance sheet is a statement showing the assets and liabilities of a business at a certain date. Balance sheet helps in estimating the real financial situation of a firm.


balance transfer fee-- The fee charged to transfer balances between two credit sources. This fee is often a percentage of the amount transferred.


balance transfer-- Repayment of one credit debt with another credit source.


Balanced Budget: When the total revenue of the government exactly equals the total expenditure incurred by the government, the budget becomes a balanced budget. But it is a conservative view point. In present days, the welfare government has to regulate a number of economic and social activities which increase the expenditure burden on the government and results in deficit budget.


Balloon Maturity: Describes a bond issue in which bonds that come due close to the maturity date of the issue have asubstantially larger value than those bonds that came due earlier in the issue. Very often, a provision is made for the redemption of part or all of these bonds by purchase or call prior to maturity.


Balloon Payment: A large payment that may be charged at the end of a loan or lease.


Bancassurance: Bancassurance refers to the distribution of insurance products and the insurance policies of insurance companies which may be life policies or non-life policies like home insurance - car insurance, medi-policies and others, by banks as corporate agents through their branches located in different parts of the country by charging a fee.


bank -- An establishment for lending, issuing, borrowing, exchanging, and safeguarding money.


Bank Codes: Three letter codes used to identify banks used by the University.


Bank Credit: Includes Term Loans, Cash Credit, Overdrafts, Bills purchased & discounted, Bank Guarantees, Letters of Guarantee, Letters of credit.


Bank Debits: The sum of the value of all cheques and other instruments charged against the deposited funds of a bank’s customer.


Bank Draft: Banker's draft is a negotiable claim drawn upon a bank. Drafts are as good as cash. The drafts cannot be returned and unpaid. Draft is issued when a customer shows his unwillingness to accept cheque in payment for his services or mercantile goods. Bank Draft is safer than a cheque.


Bank of First Deposit (BOFD):A Bank that accepts a check for deposit from a customer. It is also the institution to which a check would be returned if the check is not paid. Also called: Depositary Bank.


Bank Ombudsman: Bank Ombudsman is the authority to look into complaints against Banks in the main areas of collection of cheque / bills, issue of demand drafts, non-adherence to prescribed hours of working, failure to honour guarantee / letter of credit commitments, operations in deposit accounts and also in the areas of loans and advances where banks flout directions / instructions of RBI. This Scheme was announced in 1995 and is functioning with new guidelines from 2007. This scheme covers all scheduled banks, the RRBs and co-operative banks.


Bank Rate - This is the rate at which central bank (RBI) lends money to other banks or financial institutions. If the bank rate goes up, long-term interest rates also tend to move up, and vice-versa.


Bank Rate: Interest rate paid by major banks if they borrow from RBI, the Central Bank of the country. The Bank Rate influences the rates of interest major banks/ financial institutions charge and pay their customers.


Bank Rate: It is the rate of interest charged by a central bank to commercial banks on the advances and the loans it extends.


Bank Rate:Bank Rate is the rate of discount at which the central bank of the country discounts first class bills. It is the rate of interest at which the central bank lends money to the lower banking institutions. Bank rate is a direct quantitative method of credit control in the economy.


Bank Statement:A periodic record of a customer’s account that is issued at regular intervals, showing all transactions recorded for the period in question.


The above details describes about terms called in banking such as Automation, Availability Policy,Available Balance,Available for Sale,Average daily balance,Balance of Payment,Balance Sheet,balance transfer fee,Balloon Maturity,Bank Debits,Bank of First Deposit,Bank Rate 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 such as Arbitrage, Arbitration, Assessed Valuation, Assessment Ratio etc



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