Banking Terminologies With Definition

Some institutions require that you use the bank s power of attorney forms.

Banking terminologies with definition. Bank terms aren t part of everyday conversations. The bank may refer to this as a durable power of attorney. The returns earned on a stock or bonds as per the effective rate of interest on the effective date is known as a yield in the banking terms. The terms of the written power of attorney may specify when it will expire.

The principal grants specific rights to the agent. Understanding common bank terms. Banking terms and concepts are many and can sometimes be difficult to figure out even for the industry professionals. While we all know what an account balance is in the banking parlance it is the total amount of money in an account.

Banking terms and definitions. Here we have arranged the banking terminology alphabetically for easy reference. Yield curve is a graph or a curve that shows the relationship between maturity dates and yield. Also the bank calculates the balance after taking all debits and credits into consideration.

An explanation of bank liquidity developed by herbert prochnow in which the net cash flow of bank borrowers rather than subsequent new borrowings is seen as the true source of loan repayments. However since banking is a significant part of our business and personal life it is useful for consumers to learn some common banking terms.