What are the terms used in banking?

Glossary of Basic Banking Terms

  • Account.
  • ACH (Automated Clearing House).
  • APR (Annual Percentage Rate).
  • APY (Annual Percentage Yield).
  • ATM (Automated Teller Machine).
  • Available balance.
  • Cash equivalents.
  • Certificate of deposit (CD).

What is collateral settlement?

An arrangement between a collateral provider and a collateral taker to use collateral to secure an obligation. Collateral arrangements may include criteria for the eligibility of assets and haircuts and may take different legal forms such as by title transfer or pledge arrangements.

Which document is used by clients to put money in the bank?

A deposit slip is a small paper form that a bank customer includes when depositing funds into a bank account. A deposit slip, by definition, contains the date, the name of the depositor, the depositor’s account number, and the amounts being deposited.

What are the three main types of transaction in banking?

Based on the exchange of cash, there are three types of accounting transactions, namely cash transactions, non-cash transactions, and credit transactions.

  • Cash transactions. They are the most common forms of transactions, which refer to those that are dealt with cash.
  • Non-cash transactions.
  • Credit transactions.

What is the word for putting money in your bank account?

A deposit is a financial term that means money held at a bank. A deposit is a transaction involving a transfer of money to another party for safekeeping.

What is a collateral management agreement?

“Collateral Management Agreements (CMAs)” regulate how goods that are pledged to a financial institution as security against a loan, or remain owned by the original seller, are stored, checked and released against specific instructions.

What are collateral positions?

Collateral Position means Collateral of the Loan Parties available to support a Credit Extension under the Working Capital Line, as determined in the Collateral Position Report.

What are the five source documents?

Some examples of source documents include:

  • Bank Statements.
  • Payroll Reports.
  • Invoices.
  • Leases & Contracts.
  • Check Registers.
  • Purchase Orders.
  • Deposit Slips – not included on a bank statement.
  • Check Copies – not included on a bank statement.

What are source documents?

A source document is the original document that contains the details of a business transaction. A source document captures the key information about a transaction, such as the names of the parties involved, amounts paid (if any), the date, and the substance of the transaction.

What is a title transfer Financial Collateral Arrangement?

A title transfer financial collateral arrangement under the Financial Collateral Directive is an example of a type of transfer of money to cover obligations where that money will not be regarded as client money.

What does the FCA warning on title transfer collateral arrangements mean?

FCA warning on title transfer collateral arrangements under CASS: what should firms do? On 24 July, the Financial Conduct Authority (FCA) wrote to the CEO’s of FCA-authorised firms that act as brokers on the inappropriate use of title transfer collateral arrangements (TTCAs).

Can a TTCA firm take initial and variation margin as collateral?

a firm taking initial and variation margin under a TTCA as collateral for existing transaction exposures should in the ordinary course fall within the limits of the FCA Handbook. However, caution should be applied in this regard, as the firm must consider the extent by which the collateral is in excess of the client’s obligations.

How should a firm handle a retail client transferring money?

Pursuant to the client’s best interests rule, a firm should ensure that where a retail client transfers full ownership of money to a firm: the client is notified that full ownership of the money has been transferred to the firm and, as such, the client no longer has a proprietary claim over this money and the firm can deal with it on its own right;