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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
    P&L
    P&S
    P/E
    P/E effect
    P/E ratio
    Pac-Man strategy
    Pairoff
    Pairwise correlation swap
    Paper gain (loss)
    Paper Money
    Par value
    Par Value
    Parallel loan
    Parallel shift in the yield curve
    Parameter
    Pari Passu
    Parity value
    Partial Shipment
    Partial termination
    Participating fees
    Partnership
    Partnerships
    Pass Through Certificates
    Passive investment management
    Passive investment strategy
    Passive portfolio
    Passive portfolio strategy
    Pass-through securities
    Path dependent option
    Path dependent option
    Pay As You Go Swap (PAUG)
    Payable through drafts
    Payables
    Payback
    Payback period
    Paydown
    Payment date
    Payment Date
    Payment float
    Payment-In-Kind (PIK) bond
    Payments netting
    Payments pattern
    Payout ratio
    PayRec
    Pay-up
    Peak
    Peakload contract
    Pecking-order view (of capital structure)
    Pension Benefit Guaranty Corporation (PBGC)
    Pension plan
    Pension sponsors
    Perfect capital market
    Perfect competition
    Perfect hedge
    Perfect market view (of capital structure)
    Perfect market view (of dividend policy)
    Perfected first lien
    Perfectly competitive financial markets
    Performance attribution analysis
    Performance evaluation
    Performance measurement
    Performance shares
    Perpetual warrants
    Perpetuity
    Perquisites
    Personal tax view (of capital structure)
    Personal trust
    Philadelphia Stock Exchange (PHLX)
    Phone switching
    Physical Electricity Index (Phelix)
    Physical Settlement Date
    Physical Settlement
    PIBOR
    Pickup
    Picture
    Pie model of capital structure
    Pip
    Pit
    Pit
    Pit committee
    Pivot
    Placement
    Plain vanilla
    Plain Vanilla Transactions
    Plan for reorganization
    Plan sponsors
    Planned amortization class CMO
    Planned capital expenditure program
    Planned financing program
    Planning horizon
    Platts
    Pledge
    Plowback rate
    Plug
    Plus
    Point
    Point and figure chart
    Poison pill
    Poison put
    Policy asset allocation
    Political risk
    Pool factor
    Pool factors
    Pooling of interests
    Portability
    Portfolio
    Portfolio compression
    Portfolio insurance
    Portfolio internal rate of return
    Portfolio management
    Portfolio margining
    Portfolio opportunity set
    Portfolio reconciliation
    Portfolio swap
    Portfolio turnover rate
    Portfolio variance
    Portfolio
    Position
    Position
    Positive carry
    Positive covenant (of a bond)
    Positive float
    Possessions corporation
    Post
    Post-audit
    Postponement option
    Postponement
    Posttrade benchmarks
    Potential Future Exposure (PFE)
    Power of Attorney
    Power reverse dual currency transactions
    Preauthorized checks (PACs)
    Preauthorized electronic debits (PADs)
    Precautionary demand (for money)
    Precautionary motive
    Preceding Business Day Convention
    Preemptive right
    Preference stock
    Preferred equity redemption stock (PERC)
    Preferred habitat theory
    Preferred shares
    Preferred stock
    Preferred stock agreement
    Preferred stock
    Preliminary prospectus
    Premium
    Premium 1)
    Premium bond
    Prepackaged bankruptcy
    Prepayment speed
    Prepayment
    Prepayments
    Prerefunded bond
    Present value
    Present value
    Present value factor
    Present value of growth opportunities (NPV)
    Present Value
    Presold issue
    Pre-trade benchmarks
    Price Alignment Interest
    Price compression
    Price discovery process
    Price elasticities
    Price impact costs
    Price limit order
    Price takers
    Price value of a basis point (PVBP)
    Price/book ratio
    Price/earnings ratio
    Price/sales ratio
    Priced out
    Prices
    Price-specie-flow mechanism
    Price-volume relationship
    Pricing efficiency
    Primary dealer
    Primary Economic Terms (PET)
    Primary market
    Primary offering
    Prime broker
    Prime Lending Rate (PLR)
    Prime rate
    Primitive security
    Principal
    Principal amount
    Principal of diversification
    Principal only (PO)
    Principal
    Principal-agent relationship
    Private Export Funding Corporation (PEFCO)
    Private placement
    Private unrequited transfers
    Private-label pass-throughs
    Privatization
    Pro forma capital structure analysis
    Pro forma financial statements
    Pro forma financial statements
    Pro forma statement
    Probability
    Probability density function
    Probability distribution
    Probability function
    Product cycle
    Product Differentiation
    Product Life Cycle
    Product Mix
    Product risk
    Production payment financing
    Production-flow commitment
    Productivity
    Profit margin
    Profitability index
    Profitability ratios
    Program trades
    Progress review
    Progressive tax system
    Project financing
    Project loan certificate (PLC)
    Project loan securities
    Project loans
    Project notes (PNs)
    Projected benefit obligation (PBO)
    Promissory note
    Promissory Note
    Property rights
    Proprietary (Prop) trading
    Prospectus
    Protection Buyer
    Protection Seller
    Protectionism
    Protective covenant
    Protective put buying strategy
    Proxy
    Proxy contest
    Proxy vote
    Prudent Man (Person) Principle
    PSA
    PSB
    PSE
    PSU
    Public offering
    Public Securities Administration (PSA)
    Public warehouse
    Publicly traded assets
    Puke
    Purchase
    Purchase accounting
    Purchase agreement
    Purchase and sale
    Purchase fund
    Purchase method
    Purchasing power parity
    Purchasing Power Parity
    Purchasing-power risk
    Pure Conglomerate Merger
    Pure expectations theory
    Pure yield pickup swap
    Put
    Put an option
    Put bond
    Put option
    Put Option
    Put price
    Put provision
    Put swaption
    Put-call parity relationship
    Pyramid scheme

    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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