It is used to calculate interest rates on loans throughout the world. PRC - Prudential Regulation Committee - the PRC has responsibility within the Bank for exercising the Banks functions as the Prudential Regulation Authority as set out in the Bank of England Act 1998 and the Financial Services and Markets Act 2000. The first sale of a company's shares to the public, also known as a stock market listing or flotation. For HSBC customers, this number is found at the … Ratings range from AAA (very high) to D (in default). A document involving monetary value which can be equity based, represent ownership of an asset or represent a loan made to an owner of an asset. When a business is terminated or bankrupt, its assets are sold to pay creditors. A type of financing which combines debt and equity financing. A fixed sum of money paid to someone every year, often as a pension. A measure of change in an economy or securities market. CPI inflation - inflation measured by the consumer prices index. CBILS - Coronavirus Business Interruption Loan Scheme, CCAR - Comprehensive Capital Analysis Review. Sealing Committee - one of the Court of Directors sub-committees. BLS - Bank Liabilities Survey - a quarterly survey of banks and building societies, which helps us understand how their lending liabilities and capital drives credit and monetary conditions. Its goal is to make these low-income demographics become self-sufficient. Bake: Cook with dry, radiant heat in an oven. An agreement for the right to buy or sell a financial asset at an agreed price during a certain time period. Solvency II - sets out regulatory requirements for insurance firms and groups, covering financial resources, governance and accountability, risk assessment and management, supervision, reporting and public disclosure. Bid price: the price at which the market maker will buy. FXJSC - The London Foreign Exchange Joint Standing Committee - a forum for discussion concerning the wholesale foreign exchange market. MSCI - Morgan Stanley Capital International Inc. MSROD - Markets Strategy and Risk Operations Division, NBPSP - non-bank payment services provider, NCEME - non-China emerging market economy. It was established in 2014 to increase public trust in the Bank and improve its openness, learning culture and public accountability. It has 350 companies from 50 countries. This is the user of a payment service and generally refers to the payer. CCBS - Centre for Central Banking Studies - runs an extensive programme of events for central bankers and financial regulators from around the world. The chief finance minister of the UK who prepares the Budget. The balances in these accounts can be used to move money in real time between these account holders. This resource will also give guidance to management and staff who Nominations Committee - one of the Court of Directors sub-committees. GDP - gross domestic product - GDP is a measure of the size and health of a country’s economy over a period of time (usually one quarter or one year). Bare trustee A bare trustee holds property ‘on trust' for another person until asked to return the property. The University of Edinburgh is a charitable body, registered in Scotland, with registration number SC005336, VAT Registration Number GB 592 9507 00, and is acknowledged by the UK authorities as a “Recognised body” which has been granted degree awarding powers. Financial terminology can be complex, so we’ve provided definitions of many common financial terms to help with your personal financial planning. The finite time period at the end of which the financial instrument stops and the principle is repaid with interest. terminology to meet with the increasing demand for the book. 30. REC - Recruitment and Employment Confederation, Remuneration Committee - one of the Court of Directors sub-committees. The Chancellor - The Chancellor leads the Treasury which is the government department for economic and financial matters. The best way is to contact your bank or utility provider directly via secure messaging on internet banking or over the telephone. Often used as a means for a young company to raise capital to expand. Being placed at risk of financial losses. FSB - Financial Stability Board - an international body that monitors and makes recommendations about the global financial system. The primary stock exchange in the UK. An illegal attempt to mimimise the mount of tax owed. Several companies study issuers and make ratings decisions, including Moody's and Standard & Poor's. QE - quantitative easing - when a central bank like the Bank of England creates new money electronically to make large purchases of assets - also known as asset purchases. In the UK Basel II is implemented through the Capital Requirements Directive. Short term transactions should be financed with short term money, and long term transactions with long term funds. We’d also like to use some non-essential cookies (including third-party cookies) to help us improve the site. MPC - Monetary Policy Committee - the MPC make decisions about how we try to reach the inflation target set by HM Treasury - also see the monetary policy page. Originally denoting stocks with less than a $1 a share, they now can refer to stocks with more worth but which still operate outside of the major exchanges. A bank whose bankruptcy and collapse signalled the beginning of the 2008 credit crunch. A legal attempt to minimise the amount of tax owed. Electronic Check Conversion: Also, a different term referring to entry-level career position in many investment banks. A process of economic expansion and contraction, often in repeated cycles. While this means the bond is free of credit risk because the government can always pay the debt by raising taxes or printing money, it does depend on a stable political system. Bank Rate - the rate of interest we pay to commercial banks for the reserves they hold in their Bank of England accounts. A collective noun for the financial commnuity in NY. Here we have arranged the banking terminology alphabetically for easy reference. Their work includes generating income (through tax and borrowing) and controlling government spending. If choosing the latter, ensure you don't pay through the nose by using premium-rate phone numbers. Asset purchases - when a central bank like the Bank of England creates new money electronically to make large purchases of assets - also known as quantitative easing. This list may not reflect recent changes (). It is different to money because money is used only to purchase things, capital is used to generate wealth, e.g. RTSO - recognised payment system operators. Tips for Making a Batter: Take care not to over-mix batters or too much gluten w… Top Tips For Applying To Investment Banking, Top 5 reasons You'll Love Banking & Finance, Understanding key concepts in the Investment Banking Industry, An Introduction to Investment Banking Divisions, Your guide to Investment Banking Spring Weeks, Everything you wanted to know about Investment Banking summer internships, Five ways to impress at an Investment Banking assessment centre. A mutual fund generally is considered a very liquid investment, because shares can be redeemed at any time. Likewise a company which has £10 million can borrow £20 million and have £30 million to spend on growth, without increasing its equity and diluting its shares. loans. It sometimes has negative connotations such as irresponsibility. An attempt to protect against loss on a bet or investment by making a compensating transaction. In 2013 the FSA was replaced by the Prudential Regulation Authority (part of the Bank of England) and the Financial Conduct Authority. FLS - Funding for Lending Scheme - a scheme launched by the Bank of England and the Treasury in 2012, to encourage bank and building societies to lend more to households and businesses. SREP - Supervisory Review and Evaluation Process. Bank Identifier Code - a number used to identify each bank and branch. The word is derived from the Latin for "middle" as the risk is medium. Account Balance. Basel III - An internationally agreed set of measures developed by the Basel Committee on Banking Supervision in response to the financial crisis of 2007-09. The bigger the ratio of borrowed money to owned, the more leveraged they are. Borrowing capital to finance an investment much larger than that which the borrower can afford with their own cash, in order to increase the potential return of the investment. online banking: n. the management of a bank account over the internet - also e-banking: Grandma does her own online banking, from paying bills to checking her balance. However, since banking is a significant part of our business and personal life, it is useful for consumers to learn some common banking terms. ONS - Office for National Statistics - the ONS collect, analyse and disseminate statistics about the UK's economy, society and population. Electronic Banking: A service that allows an account holder to obtain account information and manage certain banking transactions through a personal computer via the financial institution's Web site on the Internet. These remedies included a requirement for the UK banking industry to adopt a subset of … Be familiar with these basic banking and credit terms. An item of property owned by a person or company regarded as having a value, and which can meet a debt. A person who buys and sells stocks for others in return for a comission. Jordan Belfort, the subject of a Leonardo diCaprio film, who was a stockbroker convicted of fraud. An investment bank which offers some but not all banking services, generally in corporate finance. MPC Summary - Monetary Policy Committee Summary - published with the MPC minutes. This type of banking is also popularly known as consumer banking or personal banking. Originates either from a high value poker chip, or from a sliver of diamond. The strategy of investing broadly across a number of different investments to reduce risk; a hallmark of mutual fund investing. 2. Two American institutions involved with mortgages. Payments terminology and acronyms SAXO PAYMENTS Payments terminology and acronyms AML ... Bacs provide the system for the clearing and settlement of UK automated payment methods, including direct debit and Bacs direct credit payments. All-purpose flour: A wheat flour with a medium gluten content of around 12 percent or so. The original home of the New York Stock Exchange and historic headquarters of the largest US banks. A parent corporation, limited liability company or limited partnership that owns enough voting stock in another company to control its policies and management. The guide is an important resource that will help to create a much greater understanding of the dense and obscure jargon which is used on a daily basis in relation to all aspects of the money business. Operational resilience - the ability of firms and the financial system as a whole to absorb and adapt to shocks, rather than contribute to them - see the financial sector continuity page. Once loaded, the card can … FSMA - Financial Services and Markets Act 2000 - an Act of the UK Parliament that created the Financial Services Authority (FSA) as a regulator for insurance, investment business and banking, and the Financial Ombudsman Service to resolve disputes as a free alternative to the courts. Pillar I calls for explicit capital allocations. An alternative plastic banking card that must be loaded with money before it can be used. Adjective used to describe high quality and specifically in the banking world to describe stocks which are a reliable investment, but less so than gilt-edged stock. ALCo - Assets and Liabilities Advisory Committee, ARRC - Alternative Reference Rate Committee. Even common ones have features that may not be obvious. Can be used for a whole range of baking, from crusty bread to cookies to fine cakes and pastries. MREL - minimum requirement for own funds and eligible liabilities. Most of the Indian Banking terms and definitions are similar to other countries. Their goal is to aggressively maximise return on the investment but the term actually originates from their previous strategy of "hedging risk". Governor - in addition to their duties as Governor, they also chair the Monetary Policy Committee, Financial Policy Committee and the Board of the Prudential Regulation Committee. IFRS - International Financial Reporting Standard, IFRS 9 - International Financial Reporting Standard 9, IMSG - Implementation Monitoring Standing Group. IR - Inflation Report - our quarterly report that sets out the economic analysis and inflation projections that the Monetary Policy Committee uses to make its interest rate decisions. OPEC - Organization of the Petroleum Exporting Countries. Barter This is a way of paying for things, without using money, by exchanging goods. Electronic banking is a system that allows customers to complete banking transactions on the Internet. FISIM - financial intermediation services indirectly measured. All major banks in India have brought in core banking in their operations to make banking truly anywhere banking. "Her Majesty's Revenue and Customs" - the UK Government department tasked with collecting taxes, paying some forms of state support and administering some regulatory regimes such as the national minimum wage. FSR - Financial Stability Report - our bi-annual report that sets out our Financial Policy Committee's view on the stability of the UK financial system and what it is doing to remove or reduce any risks to it. A now obsolete exchange whereby the value of a currency is defined by gold. IEO - Independent Evaluation Office - the IEO assesses our performance. Court of Directors - sets our strategy and budget and takes key decisions on resourcing and appointments - see the Court of Directors page. MLAR - Mortgage Lenders and Administrators Return - a quarterly statistical release aggregated from data on mortgage lending activities provided by around 340 regulated mortgage lenders and administrators. RFB - ring-fenced body - these are the retail banking services that will be separated from the operations of large banks, so that consumers can continue to access them even if the banks other operations are affected by a financial shock. CBEST - UK Government National Cyber Security Programme - provides direction on how to conduct a safe yet realistic simulated attack on the people, processes and technology that comprise a firm's cyber security controls. We use necessary cookies to make our site work (for example, to manage your session). Risky investments which can offer higher yields than safer bonds. CPIH - an index of consumer prices that includes a measure of owner-occupiers' housing costs. CoCo - contingent convertible capital instrument, COICOP - classification of individual consumption by purpose. RTGS - real-time gross settlement - an infrastructure operated by us that holds accounts for banks, building societies and other institutions. Pages in category "Banking terms" The following 140 pages are in this category, out of 140 total. G7 - group of seven major economies: Canada, France, Germany, Italy, Japan, the United Kingdom and the United States. Polymer - a durable yet thin and flexible plastic film made from polypropylene. It is the visible face of banking to the general public. Often expressed as Q1 Q2 Q3 and Q4. Retail banking is a type of banking in which direct dealing with retail customers is done. Financial sector continuity - the three UK financial authorities - the Bank of England, HM Treasury and the Financial Conduct Authority - work together to make sure the UK financial sector runs smoothly, efficiently and effectively. D-SIB - domestic systemically important bank, DTCC - Depository Trust and Clearing Corporation, EBITDA - earnings before interest, taxes, depreciation and amortisation, EFSF - European Financial Stability Facility, EIOPA - European Insurance and Occupational Pensions Authority, EMIR - European Market Infrastructure Regulation, ESFS - European System of Financial Supervision, ESMA - European Securities and Markets Authority, EVIA - European Venues & Intermediaries Association. APR Annual Percentage Rate (also commonly referred to as Annualized Rate) is the annual rate that is charged for borrowing expressed as a single percentage number that represents the actual yearly cost of funds over the term of a loan. Nuapay acting as a TPP provides Payment Initiation Services. overdraft: n. deficit in a bank account caused by withdrawing more money than is paid in: If there isn't enough in my account for a purchase, I get an automatic overdraft. Sending money to pay a bill, invoice, tax or similar. BEAPFF - Bank of England Asset Purchase Facility Fund Limited - a subsidiary company of the Bank of England, which purchases financial assets such as gilts and corporate bonds to boost economic activity. Stress testing - banking stress tests examine the potential impact of a hypothetical adverse scenario on the individual institutions that make up the banking system, and the system as a whole. The amount of money being transferred in and out of a business, affecting liquidity. For more information on how these cookies work please see our Cookie policy. The sales personnel and finance employees - normally where revenues are generated. Deputy Governor - we currently have four Deputy Governors each assigned functional responsibility for the following aspect of the our work: Monetary Policy, Financial Stability, Markets & Banking and Prudential Regulation. Its rises and falls are used as a gauge of business prosperity. Volatility refers to the amount of fluctuation in price of a security. Bitcoin is a virtual currency/ cryptocurrency and a payment system. "Bankers' Automated Clearing Services" - electronic financial transaction service, often used to pay employees. The guidelines are developed by an international committee of banking regulators and implemented by rules issued by the national regulators. SWIFT - Society for Worldwide Interbank Financial Telecommunications. Important Banking Terms . Credit risk and operations risk fall under pillar I. An Introduction What do Investment Banks do? An IBAN helps banks identify an account which can be used for making and receiving international payments. 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