• /
  • Bank Dictionary

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
    R squared (R2)
    R squared (R2)
    Rainbow Option
    Rally (recovery)
    RAMs (Reverse-annuity mortgages)
    Random variable
    Random walk
    Randomized strategy
    Range accrual
    Range binary
    Range forward
    Rate anticipation swaps
    Rate lock
    Rate of interest
    Rate of return ratios
    Rate risk
    Ratio spread
    Rational expectations
    Raw material supply agreement
    Real assets
    Real capital
    Real cash flow
    Real exchange rates
    Real interest rate
    Real market
    Real time
    Realised correlation swap
    Realized compound yield
    Realized return
    Receivables balance fractions
    Receivables turnover ratio
    Recognised Clearing House (RCH)
    Recognised Investment Exchange (RIE)
    Recognised Overseas Clearing House (ROCH)
    Recognised Overseas Investment Exchange (ROIE)
    Record date
    Record date
    Recovery 1)
    Recovery rate
    Recovery swap
    Red herring
    Redemption charge
    Redemption cushion
    Redemption Date
    Redemption Price
    Reference Entity
    Reference Obligation
    Reference rate
    Refunded bond
    Regional fund
    Registered bond
    Registered representative
    Registered trader
    Registration statement
    Regression analysis
    Regression equation
    Regression toward the mean
    Regular way settlement
    Regulation D
    Regulation M
    Regulation Q
    Regulatory accounting procedures
    Regulatory Assets Under Management
    Regulatory pricing risk
    Regulatory surplus
    Reinvestment rate
    Reinvestment risk
    Reinvoicing center
    REIT (real estate investment trust)
    Relative purchasing power parity (RPPP)
    Relative strength
    Relative value
    Relative yield spread
    Remaining maturity
    Remaining principal balance
    Rembrandt market
    REMIC (real estate mortgage investment conduit)
    Remote disbursement
    Rental lease
    Reoffering yield
    Reopen an issue
    Replacement cost
    Replacement cycle
    Replacement value
    Replacement-chain problem
    Replicating portfolio
    Repo Rate
    Reported factor
    Reporting currency
    Reproducible assets
    Repurchase agreement
    Repurchase agreement (Repo)
    Repurchase of stock
    Required reserves
    Required return
    Required yield
    Reserve currency
    Reserve ratios
    Reserve requirements
    Reset frequency
    Residential Mortgage Backed Security (RMBS)
    Residual assets
    Residual claim
    Residual losses
    Residual method
    Residual risk
    Resistance level
    Resting order
    Restrictive covenants
    Retail credit
    Retail Investment Advisor (RIA)
    Retail investors individual investors
    Retained earnings
    Retention rate
    Return on assets (ROA)
    Return on equity (ROE)
    Return on investment (ROI)
    Return on total assets
    Return-to-maturity expectations
    Revenue bond
    Revenue fund
    Reverse floater
    Reverse price risk
    Reverse repo
    Reverse stock split
    Reversing trade
    Revolving credit agreement
    Revolving Letter of Credit
    Revolving line of credit
    Reward-to-volatility ratio
    Riding the yield curve
    Rights Issue
    Rights offering
    Right-Way Risk
    Risk arbitrage
    Risk Assessment
    Risk averse
    Risk capital
    Risk classes
    Risk controlled arbitrage
    Risk indexes
    Risk lover
    Risk management
    Risk neutral
    Risk premium
    Risk premium approach
    Risk prone
    Risk reversal
    Risk-adjusted profitability
    Risk-adjusted return
    Risk-based margining
    Risk-free asset
    Risk-free rate
    Riskless arbitrage
    Riskless or risk-free asset
    Riskless rate
    Riskless rate of return
    Risky asset
    Roll over
    Round lot
    Round-trip transactions costs
    Rule 144a
    Rule 415

    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.

    Get Instant Advice

    Join Our Affiliate Program

    Easy Steps for our Affiliates

    Join Our Program
    Easy Registration. No KYC Required.
    Join Us!
    Generate a Lead
    No Targets, Be your own Boss
    Join Us!
    Earn Commission
    Get Paid after successful conversion of lead.
    Join Us!
    Get Paid!
    Get Money directly in your bank account
    Join Us!