BANKING
TERMS
Adverse Action Notice: The notice required by the Equal
Credit Opportunity Act advising a credit applicant or existing debtor of the
denial of their request for credit or advising of a change in terms considered
unfavorable to the account holder.
AER: Annual earnings rate on an investment.
Affidavit: A sworn statement in writing before a proper
official, such as a notary public.
Alteration: Any change involving an erasure or rewriting in
the date, amount, or payee of a check or other negotiable instrument.
Amortization: The process of reducing debt through regular
installment payments of principal and interest that will result in the payoff
of a loan at its maturity.
Anytime Banking: With introduction of ATMs, Tele-Banking and
internet banking, customers can conduct their business anytime of the day and
night. The 'Banking Hours' is not a constraint for transacting banking
business.
Anywhere Banking : Refers to banking not only by ATMs,
Tele-Banking and internet banking, but also to core banking solutions brought
in by banks where customer can deposit his money, cheques and also withdraw
money from any branch connected with the system. All major banks in India have
brought in core banking in their operations to make banking truly anywhere
banking.
Annual Percentage Rate (APR): The cost of credit on a yearly
basis, expressed as a percentage.
Annual Percentage Yield (APY): A percentage rate reflecting
the total amount of interest paid on a deposit account based on the interest
rate and the frequency of compounding for a 365-day year.
Annuity : A life insurance product which pays income over
the course of a set period. Deferred annuities allow assets to grow before the
income is received and immediate annuities (usually taken from a year after
purchase) allow payments to start from about a year after purchase.
APR: The annual
percentage rate of interest, usually on a loan or mortgage, usually displayed
in brackets and representing the true cost of the loan or mortgage as it shows
any additional payments beyond the interest rate.
Application: Under the Equal Credit Opportunity Act (ECOA),
an oral or written request for an extension of credit that is made in
accordance with the procedures established by a creditor for the type of credit
requested.
Appraisal: The act of evaluating and setting the value of a
specific piece of personal or real property.
Ask Price: The lowest price at which a dealer is willing to
sell a given security.
Asset-Backed Securities (ABS): A type of security that is
backed by a pool of bank loans, leases, and other assets. Most ABS are backed
by auto loans and credit cards – these issues are very similar to
mortgage-backed securities.
No comments:
Post a Comment