IMPORTANT BANKING TERMS STARTING WITH B 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: Tue, 11 Nov 2014 05:14:54 +0000
Trending Topics
© 2015