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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
    Naive diversification
    Naked option strategies
    National Allocation Plan (NAP)
    National Balancing Point (NBP)
    National Futures Association (NFA)
    National market
    Natural logarithm
    Negative amortization
    Negative carry
    Negative covenant
    Negative duration
    Negative pledge clause
    Neglected firm effect
    Negotiable order of withdrawal (NOW)
    Negotiated certificate of deposit
    Negotiated markets
    Negotiated offering
    Negotiated sale
    Net adjusted present value
    Net advantage of refunding
    Net advantage to leasing
    Net advantage to merging
    Net asset value (NAV)
    Net assets
    Net benefit to leverage factor
    Net book value
    Net cash balance
    Net change
    Net errors and omissions
    Net financing cost
    Net float
    Net income
    Net investment
    Net lease
    Net operating losses
    Net operating margin
    Net period
    Net present value (NPV)
    Net present value of future investments
    Net present value of growth opportunities
    Net present value rule
    Net Present Value
    Net present value
    Net profit margin
    Net salvage value
    Net working capital
    Net worth
    Net Worth
    Netting out
    Network code
    Neutral period
    New money
    New York Portfolio Clearing (NYPC)
    New York Stock Exchange (NYSE)
    Next futures contract
    Nexus (of contracts)
    No load mutual fund
    No-load fund
    Nominal annual rate
    Nominal cash flow
    Nominal exchange rate
    Nominal interest rate
    Nominal price
    Non Performing Assets (NPA)
    Noncash charge
    Noncompetitive bid
    Non-cumulative preferred stock
    Non-deliverable currency
    Non-Deliverable Forward (NDF)
    Non-Discretionary Account
    Nondiversifiability of human capital
    Nondiversifiable risk
    Non-insured plans
    Nonmarketed claims
    Non-Recourse Discounting
    Non-reproducible assets
    Nonsystematic risk
    Nord Pool
    Normal annuity form
    Normal backwardation theory
    Normal deviate
    Normal portfolio
    Normal random variable
    Normalizing method
    Nostro/Vostro reconciliation
    Nostro/Vostro Settlement break
    Note agreement
    Note issuance facility (NIF)
    Notes to the financial statements
    Notice day
    Notice of Physical Settlement (NOPS)
    Notice of Publicly Available Information (PAI)
    Notice of Readiness (NOR)
    Notification date
    Notional Amount
    Notional principal amount
    Novation consent
    Novation Protocol
    NPV profile
    Nth to default baskets
    NYSE Liffe

    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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