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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
    Objective (mutual funds)
    Obligation
    OD
    Odd lot
    Odd lot dealer
    Off exchange
    Off-Balance Sheet
    Off-balance-sheet financing
    Offer
    Offer/Ask price
    Offering memorandum
    Official reserves
    Official statement
    Offset
    Offshore finance subsidiary
    Offshore
    Old-line factoring
    Omnibus account
    Omnibus account
    On the run
    One man picture
    One-factor APT
    One-way market
    On-Line
    OPEC (Organization of Petroleum Exporting Countries)
    Open account
    Open book
    Open contracts
    Open interest
    Open position
    Open repo
    Open Trade Equity
    Open-End Credit
    Open-end fund
    Open-End Lease
    Open-end mortgage
    Opening
    Opening purchase
    Opening sale
    Open-market operation
    Open-market purchase operation
    Open-outcry
    Operating cash flow
    Operating cycle
    Operating Cycle
    Operating exposure
    Operating lease
    Operating Lease
    Operating leverage
    Operating profit margin
    Operating risk
    Operating synergy
    Operational Risk
    Operational risk
    Operationally efficient
    Opinion shopping
    Opportunity cost of capital
    Opportunity Cost
    Opportunity costs
    Opportunity set
    Optimal contract
    Optimal portfolio
    Optimal redemption provision
    Optimization approach to indexing
    Option
    Option
    Option Buyer
    Option Contract
    Option dispersion
    Option elasticity
    Option Grantor
    Option not to deliver
    Option premium
    Option Premium
    Option price
    Option pricing model
    Option seller
    Option Seller
    Option spread
    Option Style
    Option Type
    Option writer
    Option writer
    Option
    Option-adjusted spread (OAS)
    Options contract
    Options contract multiple
    Options on physicals
    Ordinary Shares
    Organised Trading Facility (OTF)
    Organized exchange
    Original face value
    Original issue discount debt (OID debt)
    Original margin
    Origination
    OTC
    OTC Derivatives Regulators�� Forum (ODRF)
    OTC Derivatives Supervisors�� Group (ODSG)
    Other capital
    Other current assets
    Other long term liabilities
    Other sources
    Out-of-currency option
    Out-of-the-money
    Out-of-the-money option
    Outperformance
    Outright rate
    Outright
    Outsourcing
    Outstanding share capital
    Outstanding shares
    Overbought\oversold indicator
    Overdraft System
    Overfunded pension plan
    Overlay strategy
    Overnight delivery risk
    Overnight Index Swap (OIS)
    Overnight repo
    Overperform
    Overreaction hypothesis
    Overshooting
    Oversubscribed issue
    Oversubscription privilege
    Over-the-Counter (OTC) transaction
    Over-the-Counter (OTC)
    Over-the-counter market (OTC)

    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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