What are the banking terminologies?

Answer 1

A Abandonment: (1) Turning damaged property over to an insurer and claiming its full value. (2) The elimination of an asset or property from use (3) Investments: The refusal of a shipment, because of damage, by the person who is authorized to ship it. Absolute Gift: A gift of property by will which carries with it possession of and complete dominion over the property: opposed to a conditional gift. Absolute Title: A legal document stating that a person or other legal entity has the unqualified right of ownership to some personal or real property. Accelerated Depreciation: A method of asset amortization that attempts to equate the book value of an asset to its market value at any point in time by making larger deductions in the earlier years of the asset's life. Acceleration: (1) Lending A standard clause in a mortgage instrument permitting the lender to demand full payment of principal from the borrower upon default of the obligation. (2) Trust The advancement of the interest where a trust is created for one beneficiary for life or for a term of years and for another in remainder, and the trust fails as to the interest for life or the term. Access: (1) The ability and means necessary to store or retrieve data , to communicate with, or to make use of any portions of an EDP system. (2) The control of physical movement to or from a sensitive are. (3) The right of authorized parties to ad to, reduce or examine the contents of a safe deposit box. Accommodation Endorsement: (1) The guarantee given by one person (or legal entity) to induce a bank or other lender to grant a loan to a different person (or legal entity). 2. The banking practice whereby one bank endorses the acceptances of another bank, for a fee, making them appropriate for purchase in the acceptance market. Accord and Satisfaction: A substitution of another agreement between the parties in satisfaction of a former one, and execution of the new agreement. Account: (1) Credit established under a particular name, usually by deposit, against which withdrawals may be made. (2) A record of the financial transactions affecting a particular phase of business. The financial transactions are dated and entered in the account as debits or credits. (3) As used in the Electronic Fund Transfer Act, account means a demand deposit, savings deposit, or other asset account established primarily for personal, family or household purposes. Account Activity: A summary of activity on an account. Includes: previous balance, payments, credits, new credit extended, finance charges, late charges, and new balance owing. Account Analysis: Determination of the profitability of a checking account. Account History: The payment history of an account over a specified period of time, including the number of times the account was past due or over limit. Available Balance: The portion of a customer's account balance on which the bank has placed no restrictions, making it available for immediate withdrawals. B Bad Debt Recovery: The collection of funds on an account which has been charged off to a bad debt. Bad Debts Ratio: The ratio of bad debts(s) to sales outstanding. Bailee: An individual or other legal entity who receives a fee for safely protecting an item for some time period. Balance Due: That dollar amount representing the sum of the previous balance due plus cash advances and merchandise purchases for the billing period less credit for payments and/or merchandise returned plus any appropriate finance charge. Balance of Account: That amount necessary to equate the total debits and total credits posted to any given account. Balance Owing: The amount outstanding. Bank Card Center: The physical facility where bank card operations are conducted. Bank Debits: The sum of all checks and other instruments charged against the deposited funds of a bank's customers. Bank Examiner: The individual who performs the bank examination. Bank Identification: A series of digits used to identify a particular bank. 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. Bankrupt: The quality of a person, corporation, or other legal entity who, being unable to meet his or her financial obligations, must relinquish his or her property to a receiver or trustee for administration and distribution to creditor. C Cable Transfer/Payments: The instruction to effect a payment or transfer which is transmitted by telecommunication. Call Date: The date on which a bond may be redeemed before maturity at an option of the issuer. Cancellation: (1) Voiding of a document by defacement, perforation, or other means, whereby restoration is made possible. (2) Investments: The termination of an insurance contract prior to the end of the policy period. Capacity: The ability to pay a specific dollar obligation when it is due. Capital: (1) The funds invested in a firm by the owners for use in conducting the business. (2) The total assets of a firm. (3) One of the factors of production, specifically referring to all goods that are used to produce other goods and services. (4) Owner's original investment plus any profit reinvested in business; appearing on the balance sheet. Cashier: An officer of the bank. Certification: A formal attestation of a matter of fact. Charge Back: Transaction which the cardholder bank returns either to its own merchant or to the merchant bank because the transaction fails to meet certain established criteria. Closing Costs: Expenses incidental to the purchase, sale, and financing of real estate, including, but not limited to land fees, title fees, and appraisal fees. Collusion: A secret agreement between two or more persons to defraud another person of his or her rights in order to obtain and unlawful objective. D Data Check: The capacity, built into the computer program, to detect a flaw when reading information on tape or disk. Day Order: An order placed to buy or sell securities on a specific day and which, if not executed, expires at the end of that trading session. Debit: (1) A charge to a customer's bank card account. (2) A charge against a bank deposit account. (3) An entry on the left side of an account. Debug: To detect, locate and remove mistakes from a program or malfunctions from a computer. Demise: Death Dependent: A person who is dependent for support upon another, to be distinguished from one who merely derives a benefit from the earnings of another. Disperse: A data processing operation in which input items or fields are distributed or duplicated in more than one output item or field. Donee: One who receives a gift. Down Payment: The difference between the sales price of real estate and the mortgage amount. Dwelling Unit: The living quarters occupied, or intended for occupancy, by one household. E E Bond: One type of debt instrument issued by the United States government to the general public. The bonds are available in small denominations are purchased at a discount to earn interest at a prescribed rate. Easy Money: The expression used to refer to economic periods characterized by a plentiful money supply and relatively low interest rates. The monetary policy of the Federal Reserve has an impact on the money supply and interest rate level. Economic Activity: The production and distribution of goods and services. Embezzlement: The fraudulent use or appropriated of funds or other property that has been entrusted to one's care. Encoding: The magnetized recording of data on the magnetic stripe on the bank card. Ethics: A system of moral principles and their application to particular problems of conduct, specifically in the case of a specific profession and its members. Extension of Credit: The granting of credit in any form. F Facsimile: An exact copy of a thing, such as a signature or document, by a duplicating process. Fail: Non-performance of a contracted act on the specified day, E.G. fail to deliver stock on settlement day. Federal Credit Union: A cooperative associated organized under the Federal Credit Union Act for accepting deposits from members and providing loans and other financial services with the proceeds. Fee: (1) Fixed amount which a trust institutions receives as compensation for its services; to be distinguished from allowance, charge, and commission. (2) An estate of inheritance in real property, sometimes referred to as an estate in fee, or fee simple estate. File: A collection of related records treated as a unit. Synonymous with data bank. Finance Bill: A long-term bill of exchange, secured or otherwise, drawn by one bank on a foreign bank, the funds for the payment of which must be provided by the drawer at maturity. Flow of Work: The path by which materials or work passes through a plant or office. Foreign Currency: The money of Another Country. Foreign Trade: The exchange of goods between two nations. Forgery: The alteration of a document or instrument with fraudulent intent. Forecasting: The act of estimating future business operations. Format: The arrangement of data. Free Reserves: Funds held on deposit with the Federal Reserve by commercial banks which are in excess of legal requirements. Full Payment: The amount of money owed on a single account that, if paid, will reduce the account to a zero balance. G Gain: A profit, or pecuniary benefit as opposed to a loss. Gap: An interval of space or time used to indicate the end of a word, or record of file of data on a tape. General Property Taxes: Taxes levied on real estate and personal property. Glut: An oversupply in the market for some good. Good Faith: A standard of conduct between parties meaning honesty in fact in the conduct of the transaction. As an element of a defense to violations under several statues, a good faith effort to comply means that the creditor did not know about the violation and took reasonable steps to avoid it. Government Bonds: Debt securities issued by the United States government. The six types include: Treasury Bills, Treasury Notes, Treasury Certificates, Series E bonds, Series H bonds, and Treasury bonds. "Governments": An abbreviation frequently used in describing bonds issued by the federal government. Ground Lease: A contract for the rental of land on a long term basis. Guaranty: The undertaking of responsibility by one party for another party's debt or obligation to perform some specific act or duty. Although the original debtor is responsible for the debt, the guarantor becomes liable in the event of a default. H Hedge: Any purchase or sale of a good or security, having as its purpose the elimination of possible profit or loss arising from price fluctuations. Heir: A person who inherits real property; to be distinguished from next of kin and from distibutee. An heir of the body is an heir in the direct line of the decedent. A son, for example, is the heir of the body of his father or mother. High Balance: Refers to account upon which the outstanding balance exceeds the authorized credit limit. See "Over limit" and "High Credit". Holographic Will: A will entirely in the handwriting of the testator. Homestead: The land and buildings thereon occupied by the owner as a home for himself or herself and family, if any, and in most states protected to some extent by statute against the claims of creditors. Host: The main computer in a distribution network. HUD: The Department of Housing and Urban Development. It is responsible for the implementation and administration of government housing and urban development programs. I IBANCO: A non-stock membership corporation responsible for administering and promoting the blue,white, and gold card program throughout the world. Image: An exact duplicate array of information or data stored in, or in transit to a different medium. Implied Trust: A trust created by operation of law or by judicial construction to be distinguished from an express trust which is created by express language, oral or in writing. Imports: Goods and services that a nation buys from abroad. Impound: To seize an item and hold it in legal custody. Items impounded can be cash or other assets. In Shape for Sale: A term describing the condition in which a security will make a good delivery. Incentives: Inducements of either financial or nonfinancial nature, to reward performance above some standard or designated level. Income Bonds: Bonds on which the payment of interest is not a fixed charge but is contingent on sufficient earnings. Income, Fixed: A steady level of income, such as that received from retirement payments or from a security that pays a constant amount at specific intervals. Incorporate: The legal act of forming a corporation. Infirmity: Any omission in detail whose effect is to invalidate a transfer of title. Infirmities include; lack of endorsement, conflicting written and numerical amounts and signature not present. Input Area: An area of storage reserved for input. Insolvent: The state of being unable to pay one's debt obligations when they come due. Insufficient Funds: A term indicating that an account balance in inadequate to cover a check that has been written and presented for payment. Insurance: A contract whereby for a fee(premium) one party agrees to pay a sum to another party in the even that the latter suffers a particular loss. The person or firm that undertakes the risk is the insurer. The party who wishes to be protected from loss is the insured party. Insurance, Unemployment: Insurance against loss of income from employment. Insurance, Upset: A form of automobile collision insurance. Inter Vivos: Between living persons Interactive: Based on the data entered the ability to enter data a receive a rapid response from the system. Internal Security Audit: A security audit conducted by personnel responsible to the management of the bank or department being audited. Investor: (1) an individual who purchases securities or other with the intention of obtaining and income from the investment without losing the principal. (2) Real Estate: A holder of a mortgage or a permanent lender for whom the mortgage banker services the loan. J Job: A specified group of tasks prescribed as a unit of work for a computer. By extension, a job usually includes all necessary computer programs, linkages, files, and instructions to the operating system. Jogging: The procedure of recording on a storage device the occurrence of particular types of transactions or system activities. Joint Ownership: The common ownership of real or personal property by two or more persons. The persons involved are either joint tenants or tenants in common. Joint Tenancy: The holding of property by two or more persons in such a manner that, upon the death of one joint owner, the survivor or survivors take the entire property, to be distinguished from tenancy in common and tenancy by the entirety. Journal: A book in which original entries concerning transactions are recorded before being transferred to the appropriate ledge accounts. Journal Tape: The tape containing the record of all the transactions in the terminal or processor. Judgment: A Sum due for payment or collection as the result of a court order. (2) The decision or sentence of a court of law; to be distinguished from a decree of a court of equity. Judgment Debt: A debt proven valid by legal test. Justified Price: The price which an informed and prudent purchaser would be warranted in paying. K K: 1024 bytes, used in referring to storage capacity Keogh Plan: A retirement plan for self employed persons and their employees to which yearly tax deductible contributions up to a specified limit can be made. Key: One or more characters within an item of data that are used to identify it or control its use. Key Account: A merchant who is of particular importance to a card plan in terms of either volume or prestige or both. Kin: Persons of the same blood or members of the same family. Kindred: Persons related by blood. L Labor: One of the factors of production made of human effort expended to acquire income. Labor Organization: A union of workers organized to increase group welfare by bargaining as a single force for wages and benefits. Language: (1) A system for representing and communicating information between people or between people and machines. (2) A carefully defined set characters and rules for combining information into expressions, to convey specific meanings to computers. Last Will: The will last executed by a person. Since all former wills ordinarily are revoked by the last one in point of time, the term is used to emphasize the fact that it is the latest and, therefore, the effective will of the maker. Laundered Money: Funds sent through numerous depositories one after another in an attempt to conceal the source of the money. Legal Charity: One that comes within the legal definition of charity. Lessor: The person, Corporation, or other legal entity that leases property to a lessee. Library: An area of a disk that may contain some source programs, object or load programs and procedures. Line: A telephone line linking the users equipment with the computer. Load: (1) Investments: The selling commission paid by the buyer upon the acquisition of shares in open-end mutual investment funds. (2) Operations: To put data into a register or storage, to put cards into a card reader. Loan: A business contract by which a borrower and lender enter into an agreement. Loans are classified according to the lender or borrower involved, whether or not collateral is required, the time to maturity, conditions of repayment, and other variables. M Machine Instruction: An instrument that a machine can recognize and execute. Mail Teller: The employee designated as responsible for processing mail deposits. Mail Theft: The stealing of bank cards while they are in process by the U.S Postal Service. Main Teller: The employee designated as responsible fro processing mail deposits. Manual, Policy: A written statement of the guiding principles to be followed in carrying out the affairs of the bank. Market Analysis: Research done to measure the extent of and characteristics relevant in a given market. Merchant Outlet: A merchant location. Minor: A person under legal age, that is, under the age at which her or she is accorded full civil rights, the same as an infant. Miss-Sort: A check or other instrument, routed in error. Money Market CD: A six month savings certificate, pegged to the interest rates on Treasury bills with a minimum deposit of $10,000.00 Multi-Currency Loans: A loan involving several currencies. N National Bank: A bank whose charter is approved by the Comptroller of the Currency, it must belong to the Federal Reserve System and FDIC. Near Term: Short Term. Negotiable: A term used to designate a security, the title to which is transferable by delivery. Net: That which is left from a certain amount after certain deductions have been made. Net Change: The difference between the closing price on a security from one day to the next. Net Worth: Assets minus liabilities for a business. This is the owner's equity. NETS: Nebraska Electronic Transfer System. NG: A expression used to designate a check as not good because of insufficient funds. Noise: The meaningless extra bits or words which must be ignored or removed from the data at the time the data are used. O Object Code: Output from a compiler which is itself executable machine code or is suitable for processing to produce executable machine code. Obligation: The responsibility to perform some act or pay a sum of money when due. Occupancy Expense: Expenses related to the use of property. Occupancy expenses include such items as rent, heat and upkeep. On-Line Capture: An input system for bank card dollar entries Offer: The price at which a person is willing to sell a security. On-Line: (1) 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. (2) Any equipment connected directly to the computers central processing unit. On-The-Spot Loan: An extension of funds on a pre-approved credit line or credit card. Order Party: Party instructing the sender to execute the transaction. P Pack: To compress numeric data in a storage medium to allow two digits to be stored in a single position or byte. Paper Tape: A strip of paper capable of storing or recording information. Partition: Division, apportionment, and allocation of property between or among two or more persons who are entitled to fractional interests in the whole property, frequently used in connection with a parcel of real property which must be sold in order to satisfy interests of the parties owning unallocated shares in such property. Pay: In the context of a payment order, to account to the ultimate payee or beneficiary in legal tender. Payer: The party delivering funds. Peak: The high point of a particular phase of economic activity. Peg: A level of an exchange rate. EG: May be "pegged" at, above or below par. Pendente Lite: During the continuance of a suit at law or in equity. Per Diem: A term meaning "by Day", used to compute an allowance or charge that has been established on a daily basis. PET: Paperless Entry Transfer System (Oregon) Plat: A map representing a piece of land subdivided into lots with streets, boundaries, easements, and dimensions. It is usually recorded and made a part of the public record. Positive Carry: A condition where the yield on a security is greater than the interest cost on funds borrowed to finance its retention. Preferred Stock: A class of capital stock which has claim prior to that of common stock upon the earnings of a corporation and upon the assists of the corporation and upon the assets of the corporation in the event of liquidation. Preferred stock does not usually entail voting rights as does common stock. Procedure: (1) Specific Steps to be taken toward the achievement of a goal. (2) The course of action taken for the solution of a problem. Product Mix: The composite of products offered for sale by the organization. Q Qualified Endorsement: An endorsement on a check or other instrument containing the words "without recourse" or similar language intended to limit the endorsers liability. Quotation Board: A large display board, usually found in a brokerage office, where daily prices for selected securities are posted. R Random Sampling: A method of selecting units in such a way that all units under consideration have equal probabilities of being chosen. Read-In: To sense information contained in some source and transmit this information to an internal storage. Real Estate: The right, title or interest that a person has in real property, as distinguished from the property itself. Realtor: A real estate broker or an associate holding active membership in a local real estate board affiliated with the National Association of Realtors. Receive (Advice to). An advance notice to an account-maintaining bank that it will receive funds to be credited to the sender of the message. Registration: The evidence of ownership as indicated on a registered bond or certificate of stock. Release of Lien: An instrument discharging secured property from a lien. Remittance Payment: Payment sent by mail to center for processing. RES: In the phrase trust RES, the same as trust property. Resolution: A formal document expressing the intention of a board of directors of a corporation. Retrieval System: That method which provides for the visual display or hard copy printout of stored data. Rule: A specific guide to one action rather than a series of actions, such as "always count cash twice before giving it to a customer" S Salary: A fixed income or consideration for services, which is usually paid on a weekly, bi-weekly or monthly basis. This is distinguished from a wage, which is generally paid on an hourly basis. Sale: The transfer of ownership of some type of property from one person to another, for some consideration. Salvage: The attempt to get repayment of some portion of a loan obligation which has already been written off the bank's books. Second Mortgage: A real estate mortgage subordinate to another mortgage. Secured Account: An account against which collateral or other security is held. Separator: An encoded character on the magnetic stripe to indicate a break in information or the end of a field. Previously referred to a as a field separator. Short-term Loan: Loan to a business for less than one year, usually for operating needs. Simultaneous Death: The death of two or more persons under such circumstances that the order cannot be proved. Skip Account: A cardholder with a balance owing whose whereabouts are unknown. Sovereign Risk Limit: A limit on the amount a bank will lend to one foreign government. Spouse: A husband or a wife. Stand-alone Unit: A terminal capable of functioning without connection to a computer system or terminal controller. State: Any state, the District of Columbia, the Commonwealth of Puerto Rico, or any territory or possession of the United States. Statement Film: Photocopy of the actual billing statement. Statutes of Descent: Laws, rules or statutes governing the descent of real property under intestacy. Surety Bond: A bond or guarantee usually given by a bonding company to answer for the debt, default or miscarriage of another. The surety (Company) binds itself to pay if the obligor shall default in his obligation. T Table: A collection of data display in an easily-used form. It can be written as an array of rows and columns or stored in a computer data bank. Take Profits: To realize a capital gain by selling "a security; to be distinguished from retaining a paper gain. Tape Drive: The mechanism that moves magnetic or paper tape past sensing and recording heads and is usually associated with data processing equipment. Tax Lien: A claim against property in the amount that is due and unpaid in real estates taxes or federal income taxes. TELEX: (1) A global communications system used for the electron transmission of information. (2) A teletype exchange wire service available from Western Union and other carriers. Teller: A bank employee who actually handles money and waits on depositors and other bank customers. The teller's main function is to receive deposits and pay out withdrawals. In large banks, there is often a separate teller for each of several windows