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  • Bank Dictionary

Banking Dictionary

Banking is an industry that deals with cash, credit, and other forms of money. Banks provide a secure environment for storing excess cash and credit. Savings accounts, certificates of deposit, and checking accounts are all available. These deposits are used by banks to provide loans. Home mortgages, business loans, and auto loans are all examples of these types of loans.

Even native speakers may find financial words unfamiliar, although they are useful to everyone. You might wish to work in a bank. It's possible that you'll need to travel for business or conduct business in another country and need to know a few banking-related terms.

Shape Shape
    Gamma
    Gamma
    Garmen-Kohlhagen option pricing model
    Gasoil
    Gearing
    GEMs (growing-equity mortgages)
    General cash offer
    General obligation bonds
    General partner
    General partnership
    Generally Accepted Accounting Principals (GAAP)
    Generic
    Geographic risk
    Geometric mean return
    Gestation repo
    Gilts
    Ginnie Mae
    Give up
    Glass-Steagall Act
    Global bonds
    Global Financial Markets Association
    Global fund
    Global Trade Repository (GTR)
    globalCOAL?
    Globalization
    GMCs (guaranteed mortgage certificates)
    GNMA Midget
    GNMA-I
    GNMA-II
    Gnomes Freddic
    Go-around
    Going-concern value
    Going-private transactions
    Gold exchange standard
    Gold fixing (Gold fix)
    Gold No-Calc
    Gold record
    Gold standard
    Golden parachute
    Good delivery
    Good delivery and settlement procedures
    Goodwill
    Goodwill
    Government bond
    Government National Mortgage Association (Ginnie Mae)
    Government securities
    Government sponsored enterprises
    Grace Period
    Grace Period Extension
    Graduated-payment mortgages (GPMs)
    Graham-Harvey Measure 1
    Graham-Harvey Measure 2
    Grantor trust
    Grantor
    Gray market
    Greeks
    Greenmail
    Greenshoe option
    Grid
    Gross
    Gross domestic product (GDP)
    Gross Domestic Product (GDP)
    Gross interest
    Gross national product
    Gross National Product (GNP)
    Gross profit margin
    Gross Profit margin
    Gross spread
    Group of five (G-5)
    Group of seven (G-7)
    Group rotation manager
    Growing perpetuity
    Growth manager
    Growth opportunity
    Growth phase
    Growth rates
    Growth stock
    Guaranteed insurance contract
    Guaranteed investment contract (GIC)
    Guarantor program
    Guarantor
    Guaranty

    What are the fundamentals of banking?

    The concepts and principles linked to the practise of banking are referred to as banking fundamentals. Banking is a business that deals with credit, cash holding, investments, and other types of financial operations. Because it allocates cash to borrowers with productive investments, the banking industry is one of the most important drivers of most economies.

    Deposits and withdrawals, currency exchange, forex trading, and wealth management are all services provided by banks. They also serve as a conduit between depositors and borrowers, using the monies placed by their customers to provide credit to those who need it.

    Banks make money by charging interest on loans, which they benefit from by charging a greater interest rate than they pay on customer deposits. They must, however, follow the rules set down by the central bank or the national government.

    Banks are divided into several categories

    Depending on the type of business they do, banks can be classified into one of several categories. Private persons and enterprises can use commercial banks' services. Individuals and families can use retail banking to get credit, make deposits, and manage their money.

    The size of community banks differs from that of commercial banks. They are solely focused on the local market. They offer more personalised service and cultivate long-term connections with their clients.

    These services are available through the internet banking system. E-banking, online banking, and net banking are all terms used to describe this industry. The majority of other banks now provide internet banking services. There are a lot of banks that exclusively operate online. They may convey cost savings to the customer because they don't have any branches.

    Savings and loans are specialist banking institutions designed to encourage the purchase of a home at a reasonable price. In order to raise money to lend for mortgages, these banks frequently offer higher interest rates to depositors.

    Credit unions are owned by its members. Because of their ownership structure, they may offer low-cost, more personalised services. To join, you must be a member of their membership field. This could include employees of businesses or schools, as well as people within a specific geographic area.

    Investment banking helps companies raise money through initial public stock offerings (IPOs) or bonds. They also make mergers and acquisitions easier.

    Small firms can use merchant banking to get similar services. They offer products such as mezzanine financing, bridge finance, and corporate credit.

    Sharia banking abides with Islam's prohibition on interest rates. Furthermore, Islamic banks do not lend to enterprises that deal in alcohol or gambling. Instead of paying interest, borrowers’ profit-share with the lender. As a result, Islamic banks avoided the hazardous asset classes that contributed to the financial crisis of 2008.

    How to Use Dhanguard's Banking Dictionary to Learn Banking Terms

    First and foremost, take a look at each new word or phrase listed. It's crucial to double-check even if you think you know some of them. We identify words and believe we know them, only to be unable to recall them when we need to utilise them. Always keep a check on our dictionary for the important banking terms.

    Understanding the fundamentals of banking and finance, as well as the terminology used to discuss them, can make a significant difference in your bank account.

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