Banking terms useful for all Banks Exams: Balance Transfer: The process of moving an outstanding balance from one credit card to another. This is usually done to obtain a lower interest rate on the outstanding balance. Transfers are sometimes subjected to a Balance Transfer Fee. Bank Custodian: A bank custodian is responsible for maintaining the safety of clients assets held at one of the custodians premises, a sub-custodian facility or an outside depository. Bank Examination: Examination of a banks assets, income, and expenses-as well as operations by representatives of Federal and State bank supervisory authority-to ensure that the bank is solvent and is operating in conformity with banking laws and sound banking principles. Bank Statement: Periodically the bank provides a statement of a customers deposit account. It shows all deposits made, all checks paid, and other debits posted during the period (usually one month), as well as the current balance. Banking Day: A business day during which an office of a bank is open to the public for substantially all of its banking functions. Bankrupt: A bankrupt person, firm, or corporation has insufficient assets to cover their debts. The debtor seeks relief through a court proceeding to work out a payment schedule or erase debts. In some cases, the debtor must surrender control of all assets to a court-appointed trustee. Bankruptcy: The legal proceedings by which the affairs of a bankrupt person are turned over to a trustee or receiver for administration under the bankruptcy laws. There are two types of bankruptcy: Involuntary bankruptcy-one or more creditors of an insolvent debtor file a petition having the debtor declared bankrupt. Voluntary bankruptcy-the debtor files a petition claiming inability to meet financial obligations and willingness to be declared bankrupt. Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Billing Cycle: The time interval between the dates on which regular periodic statements are issued. Billing Date: The month, date, and year when a periodic or monthly statement is generated. Calculations have been performed for appropriate finance charges, minimum payment due, and new balance. Billing Error: A charge that appears on a periodic statement associated with an extension of credit (e.g., credit card) that was not authorized by the cardholder or the cardholders designee, is not properly identified, and was not accepted by the cardholder or the cardholders designee. A billing error can also be caused by a creditors failure to credit a payment or other credit to an account as well as accounting and clerical errors. Bond, U.S. Savings: Savings bonds are issued in face value denominations by the U.S. Government in denominations ranging from $50 to $10,000. They are typically long-term, low-risk investment tools. Business Day: Any day on which offices of a bank are open to the public for carrying on substantially all of the banks business.
Posted on: Sat, 24 May 2014 14:07:14 +0000
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