Flashcards: Banking

A credit bureau is a collection agency that gathers account information from various creditors and provides that information to a consumer reporting agency in the United States, a credit reference agency in the United Kingdom, a credit reporting body in Australia, and a credit information company (CIC) in India.

A syndicated loan is one that is provided by a group of lenders and is structured, arranged, and administered by one or several commercial banks or investment banks known as lead arrangers.

A money changer is a person or organisation whose business is the exchange of coins or currency of one country, for that of another.

The addition of interest to the principal sum of a loan or deposit is called compounding.

In the United States, the federal funds rate is the interest rate at which depository institutions (banks and credit unions) lend reserve balances to other depository institutions overnight, on an uncollateralized basis.

An overdraft occurs when money is withdrawn from a bank account and the available balance goes below zero.

Bank secrecy (or bank privacy) is a legal requirement in some jurisdictions which prohibits banks providing to authorities personal and account information about their customers, except in certain conditions, such as if a criminal complaint has been filed.

In trade finance, forfaiting is a financial transaction involving the purchase of receivables from exporters by a forfaiter.

A stored-value card is a payments card with a monetary value stored on the card itself, not in an external account maintained by a financial institution.

In monetary economics, a money multiplier is one of various closely related ratios of commercial bank money to central bank money under a fractional-reserve banking system.

A cheque (or check in American English) is a document that orders a bank to pay a specific amount of money from a person's account to the person in whose name the cheque has been issued.

A credit score is a numerical expression based on a level analysis of a person's credit files, to represent the creditworthiness of the person.

In finance, a high-yield bond (non-investment-grade bond, speculative-grade bond, or junk bond) is a bond that is rated below investment grade.

A giro (/ˈdʒaɪəroʊ/, /ˈdʒɪroʊ/, /ˈʒɪroʊ/, /ˈdʒɪəroʊ/, or /ˈʒɪəroʊ/), or giro transfer, is a payment transfer from one bank account to another bank account and instigated by the payer, not the payee.

The term lender of last resort (LOLR) originates from the French expression dernier ressort.

Fractional-reserve banking is the practice whereby a bank accepts deposits, makes loans or investments, and holds reserves that are equivalent to a fraction of its deposit liabilities.

Hypothec (/hʌɪˈpɒθɪk/ or /ˈhʌɪpɒθɪk/; 16th century, from Fr. hypothèque, from Lat. hypotheca, from Gk. ὐποθήκη: hypothēkē), sometimes tacit hypothec, is a term used in mixed legal systems (e.g. Scots law, South African law, Ukrainian law (Ukrainian: Іпотека)) to refer to an express or implied non-possessory real security over corporeal movable property.

The overnight rate is generally the interest rate that large banks use to borrow and lend from one another in the overnight market.

A mount of piety is an institutional pawnbroker run as a charity in Europe from the Late Middle Ages times till today, more often referred to by the relevant local term, such as monte di pietà (Italian), mont de piété (French) or monte de piedad (Spanish).

Asset-based lending is any kind of lending secured by an asset.

A bank tax ("bank levy") is a tax on banks.