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Banking Dictionary By Dhanguard

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
    Ladder option
    Ladder strategy
    Lag response of prepayments
    Last split
    Last trading day
    Last-In-First-Out (LIFO)
    Law of large numbers
    Law of one price
    LCH.Clearnet Ltd
    Lead manager
    Leading economic indicators
    Lease Rate
    Ledger cash
    Legal bankruptcy
    Legal capital
    Legal defeasance
    Legal Entity Identifier (LEI)/Unique Counterparty Identifier (UCI)
    Legal investments
    Letter of comment
    Letter of credit (L/C)
    Letter of Credit (LC)
    Letter stock
    Level pay
    Level-coupon bond
    Leverage clientele
    Leverage ratios
    Leverage rebalancing
    Leveraged beta
    Leveraged buyout (LBO)
    Leveraged equity
    Leveraged lease
    Leveraged loan CDS
    Leveraged portfolio
    Leveraged required return
    Liability Driven Investment (LDI)
    Liability funding strategies
    Liability swap
    Lifecycle events
    LIFO (Last-in-first-out)
    Lifting a leg
    Limit (up or down)
    Limit move
    Limit order
    Limit order
    Limit order book
    Limit price
    Limitation on liens
    Limitation on merger, consolidation, or sale
    Limitation on sale-andleaseback
    Limitation on subsidiary borrowing
    Limited liability
    Limited partner
    Limited partnership
    Limited-liability instrument
    Limited-tax general obligation bond
    Line of credit
    Line of Credit
    Linear programming
    Linear regression
    Linter's observations
    Liquefied natural gas (LNG)
    Liquefied petroleum gas (LPG)
    Liquid asset
    Liquid yield option note (LYON)
    Liquidating dividend
    Liquidation rights
    Liquidation value
    Liquidity diversification
    Liquidity preference hypothesis
    Liquidity premium
    Liquidity ratios
    Liquidity risk
    Liquidity risk
    Liquidity theory of the term structure
    Listed look-a-like
    Listed stocks
    Load factor
    Load fund
    Load shape
    Loan amortization schedule
    Loan Document
    Loan Only Credit Default Swap (LCDS)
    Loan Participation Note
    Loan Risk
    Loan syndication
    Loan value
    Local expectations theory
    Locked market
    Lock-out With PAC bond
    Lock-up CDs
    Log-linear least-squares method
    Lognormal distribution
    London International Financial Futures Exchange (LIFFE)
    Long bonds
    Long coupons
    Long form
    Long hedge
    Long straddle
    Long-term assets
    Long-term debt
    Long-term debt ratio
    Long-term debt to equity ratio
    Long-term debt/capitalization
    Long-term financial plan
    Long-term liabilities
    Long-term Liabilities
    Look-a-like option
    Look-a-like swap
    Lookback option
    Lookback option
    Loss Given Default (LGD)
    Low price
    Low price-earnings ratio effect
    Low-coupon bond refunding

    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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