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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
    ICD
    Idiosyncratic Risk
    Immediate settlement
    Immunization
    Immunization strategy
    Implied call
    Implied repo rate
    Imports
    Import-substitution development strategy
    Imputation tax system
    In the box
    Income beneficiary
    Income bond
    Income fund
    Income statement (statement of operations)
    Income stock
    Incremental cash flows
    Incremental costs and benefits
    Incremental internal rate of return
    Indemnity
    Indenture
    Independent Amount/Initial Margin
    Independent project
    Independent System Operator (ISO)
    Index
    Index and Option Market (IOM)
    Index arbitrage
    Index arbitrage
    Index fund
    Index model
    Index option
    Index sponsor
    Index warrant
    Indexed bond
    Indexing
    Indicated dividend
    Indicated yield
    Indifference curve .s and g
    Indirect financing
    Indirect taxes
    Inductive reasoning
    Industrial revenue bond (IRB)
    Industry
    Industry life cycle
    Inflation
    Inflation Premium
    Inflation risk
    Inflation uncertainty
    Inflation
    Inflation-escalator clause
    Inflation-indexed debt instrument Generally a debt instrument (such as a bond or note) on which the payments are adjusted for inflation and deflation. In a typical inflation-indexed instrument, the principal amount is adjusted monthly based on an inflation index such as the Consumer Price Index (CPI).
    Inflation-linked derivatives
    Information asymmetry
    Information Coefficient (IC)
    Information costs
    Information services
    Informational efficiency
    Information-content effect
    Informationless trades
    Information-motivated trades
    In-house processing float
    Initial margin requirement
    Initial public offering (IPO)
    Initial Public Offering (IPO)
    Input-output tables
    Insider information
    Insider trading
    Insiders
    Insolvency risk
    Insolvent
    Insolvent
    Installment sale
    Institutional investors
    Institutionalization
    Instruments
    In-substance defeasance
    Insufficient Funds
    Insurance principle
    Insurance
    Insured bond
    Insured plans
    Intangible assets
    Integer programming
    Integrated hedge
    Intercompany loan
    Intercompany transaction
    Intercontinental Exchange (Europe)
    Interest
    Interest coverage ratio
    Interest coverage test
    Interest equalization tax
    Interest on interest
    Interest payments
    Interest rate agreement
    Interest rate cap
    Interest rate cap
    Interest rate ceiling
    Interest rate collar
    Interest rate derivative
    Interest rate floor
    Interest rate floor
    Interest rate futures
    Interest rate on debt
    Interest rate parity theorem
    Interest rate risk
    Interest rate straddle
    Interest rate swap
    Interest Rate Swap (IRS)
    Interest Rate Swaption
    Interest subsidy
    Interest tax shield
    Interest-only strip (IO)
    Intermarket sector spread
    Intermarket spread swaps
    Intermediate-term
    Intermediation
    Intermediation
    Internal finance
    Internal growth rate
    Internal market
    Internal measure
    Internal rate of return
    Internal Rate of Return (IRR)
    Internally efficient market
    International Bank for Reconstruction and Development
    International Banking Facility (IBF) International Banking Facility
    International bonds
    International Depository Receipt (IDR)
    International Derivatives Clearing Group (IDCG)
    International diversification
    International Emissions Trading Association (IETA)
    International finance subsidiary
    International Fisher effect
    International fund
    International market
    International Monetary Fund
    International Monetary Market (IMM)
    International Organisation of Securities Commissions (IOSCO)
    International Securities Identification Number (ISIN)
    International Swaps and Derivatives Association (ISDA?)
    Interpolation (linear interpolation)
    Interruptible service
    In-the-money
    In-the-money
    Intramarket sector spread
    Intrinsic value 1)
    Intrinsic value of a firm
    Intrinsic value of an option
    Inventory
    Inventory loan
    Inventory turnover
    Inverse floater
    Inverse floating rate note
    Inverted market
    Investment Advisor
    Investment analysts
    Investment decisions
    Investment grade bonds
    Investment income
    Investment management
    Investment manager
    Investment product line (IPML)
    Investment tax credit
    Investment trust
    Investment value
    Investments
    Investor
    Investor fallout
    Investor relations
    Investor's equity
    Invoice
    Invoice billing
    Invoice date
    Invoice price
    Involuntary liquidation preference
    IRA/Keogh accounts
    Irrational call option
    Irrelevance result
    ISDA International Swap Dealers Association
    ISDA? 2009 Collateral Dispute Resolution Procedure
    ISDA? Determinations Committees (ISDA? DCs)
    ISDA? Master Agreement
    ISDA? Physical Settlement
    ISDA? Uniform Settlement Agreement (USA)
    ISMA International Security Market Association
    Issue
    Issue price
    Issued share capital
    Issuer
    Issuer
    ITraxx indices

    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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