Finance & Banking Vocabulary: 200 Key English Terms
English is the working language of international banking: credit reports, loan agreements, annual reports, regulatory guidance and SWIFT messages are all written in it. This glossary collects the words finance and banking professionals use every day, from accounts and loans to risk, compliance and fintech, with natural Turkish equivalents and examples from real work.
200 terms
12 topics
73 core terms
400 example sentences
Read, understand, keep going
No account needed. Read the meaning, see where the term is used, then study the examples. Click any word in the lesson for help. You can also select a word and press Alt + Enter.
Banks & Institutions
central bank
noun
Meaning
A country's or region's main monetary authority, which issues money, sets the policy interest rate and works to keep prices and the financial system stable.
Where you use it
Appears daily in market news and bank strategy meetings. Central banks raise, cut or hold rates and act as lender of last resort to banks. Examples: the Fed, the ECB, the Bank of England and the CBRT in Türkiye.
Examples
The central bank kept its policy rate unchanged at this month's meeting.
Our treasury team follows every central bank statement closely.
Common phrases
central bank decision · central bank governor · central bank reserves · independent central bank
One of the local offices of a bank, where customers can open accounts, apply for loans and get help face to face.
Where you use it
Used in retail and SME banking. Banks open, close and merge branches; the staff include a branch manager and customer advisers. 'Branch network' means all the branches of a bank, and 'in branch' means at a branch.
Examples
You can collect your new card from your local branch.
The bank is closing 50 branches as more customers move to mobile banking.
Common phrases
branch manager · branch network · local branch · in branch · open a branch
Banking services for individual customers, such as current accounts, savings, cards, personal loans and mortgages.
Where you use it
Names a business line and its customers. People work in retail banking, a bank has a retail banking division, and 'retail customers' are individuals. It is contrasted with corporate, commercial and investment banking.
Examples
She moved from retail banking to corporate lending last year.
Retail banking generates most of our fee income.
Common phrases
retail banking division · retail customers · work in retail banking · head of retail banking
A bank that takes deposits from people and businesses and uses them to make loans and offer payment services.
Where you use it
Used in economics, regulation and the news to separate ordinary banks from central banks and investment banks. Most high-street banks with branches are commercial banks.
Examples
Commercial banks borrowed heavily from the central bank last week.
Unlike investment banks, commercial banks are funded mainly by customer deposits.
Usage note
In Turkish banks, 'ticari bankacılık' often means the segment for mid-sized companies ('commercial banking' in English), while 'commercial bank' means a whole deposit-taking bank.
Common phrases
commercial bank lending · large commercial banks · commercial bank deposits
Banking services for large companies, such as loans, cash management, trade finance and foreign exchange.
Where you use it
Names both the business line and the team. Relationship managers in corporate banking look after a portfolio of company clients. Banks usually split customers by size into retail, SME, commercial and corporate segments.
Examples
He is a relationship manager in corporate banking, covering energy companies.
Corporate banking clients expect cash management solutions tailored to them.
Common phrases
corporate banking division · corporate banking clients · head of corporate banking · corporate and investment banking
Short for small and medium-sized enterprise: a company below certain limits for staff and turnover. In the EU, SMEs have fewer than 250 employees.
Where you use it
Said letter by letter: S-M-E. Banks have SME banking teams, SME loans and SME customers. In the US people more often say 'small business', and some use SMB (small and medium-sized business).
Examples
Our SME loans grew faster than our corporate loans this year.
Many SMEs struggle to provide the collateral that banks ask for.
Common phrases
SME banking · SME loans · SME customers · SME lending
An organisation that collects information about how people and companies use and repay credit, and provides credit reports and scores to lenders.
Where you use it
Used in credit decisions and customer service. Banks report payment data to the credit bureau and check it before lending. In Türkiye this role is played by the Kredi Kayıt Bürosu (KKB), whose Findeks service lets people see their own report and score. Americans also say 'credit reporting agency'.
Examples
We pull a report from the credit bureau for every new loan application.
Late payments stay on your credit bureau record for several years.
Common phrases
credit bureau report · credit bureau check · report to the credit bureau · credit reporting agency
A bank employee who is the main contact for a group of clients, looks after their needs and offers them the bank's products.
Where you use it
Used in corporate, commercial, SME and private banking, often shortened to RM. An RM manages a portfolio of clients, prepares credit proposals and brings in product specialists when needed. Clients usually have one named RM as their first point of contact.
Examples
Your relationship manager will contact you to discuss the new credit limit.
Each relationship manager in our corporate branch looks after about 40 companies.
A bank employee who serves customers at the counter, handling cash deposits, withdrawals, payments and other everyday transactions.
Where you use it
Common in American English; British English also says 'cashier'. Tellers work at the counter, follow cash limits and balance their cash at the end of the day. As routine transactions move to ATMs and apps, many tellers now also advise customers. The word lives on in ATM: automated teller machine.
Examples
The teller asked to see my ID before processing the withdrawal.
We have fewer tellers in branches where most customers use the ATMs.
Common phrases
bank teller · teller window · teller transaction · head teller
The main office of a bank or company, where senior management and central departments such as risk, finance and HR work.
Where you use it
Used in British English and in Turkish banks' English documents; American English prefers 'headquarters' (HQ). Branches send requests to head office for approval, and central units are called head office departments.
Examples
Loans above the branch's authority must be approved by head office.
She moved from a branch to the risk department at head office.
Usage note
British English often uses 'head office' without 'the': 'I work at head office.'
Common phrases
head office approval · head office departments · at head office · head office staff
A bank that helps companies and governments raise money in capital markets and advises on deals such as mergers and acquisitions, rather than serving everyday savers.
Where you use it
Used in corporate finance and financial news. Investment banks underwrite share and bond issues, advise on M&A and trade securities. 'Investment banking' is the business line; large global groups combine it with commercial banking. People who work there are investment bankers.
Examples
Two international investment banks are leading the company's IPO.
She left the investment bank to join a private equity fund.
Common phrases
investment banking · investment banker · global investment bank · investment banking fees
Personalised banking and investment services for wealthy individuals and families, usually provided through a dedicated adviser.
Where you use it
Used in retail banking and wealth management. Private banking clients, often called high-net-worth individuals (HNWIs), receive investment advice, portfolio management and special pricing. Each bank sets its own minimum asset level. It is closely linked to 'wealth management'.
Examples
Clients with large investment portfolios are moved to private banking.
Our private banking team advises families on passing their wealth to the next generation.
Usage note
'Private banking' is a service for wealthy clients. A bank owned by private shareholders rather than the state is a 'privately owned bank' or 'private-sector bank'.
A bank that works according to interest-free finance principles, sharing profit and loss with fund owners and financing customers through trade-based contracts instead of interest-bearing loans.
Where you use it
The term used in Türkiye; internationally the same model is usually called Islamic banking. Customers hold participation accounts and receive a profit share instead of interest. A common financing method is murabaha, in which the bank buys an asset and sells it to the customer at an agreed mark-up.
Examples
The customer wanted interest-free financing, so she applied to a participation bank.
Instead of interest, a participation bank pays a profit share on participation accounts.
A bank that provides services, such as making payments or handling trade documents, for another bank in a country or currency where that bank has no presence.
Where you use it
Used in international payments, trade finance and compliance. Banks hold accounts with their correspondents: a nostro account is 'our account with you', a vostro account 'your account with us'. A dollar payment usually passes through a US correspondent bank. Because of AML risks, these relationships need careful due diligence.
Examples
The payment is on hold at our correspondent bank in New York for a compliance check.
We have correspondent bank relationships with more than 1,000 banks worldwide.
Money that you put into a bank account, or the act of putting it there. For a bank, customer deposits are its main source of funding.
Where you use it
Used as a noun and a verb: you make a deposit or deposit money into an account. Bankers talk about deposit growth, deposit rates and the cost of deposits. In the UK it also means the first payment when buying a house or car.
Examples
Deposits rose sharply after we launched the new savings product.
You can deposit cash at any of our ATMs with your debit card.
Usage note
Turkish 'depozito' is only a security deposit (money held as a guarantee, for example by a landlord). In banking, 'deposit' usually means 'mevduat'.
Common phrases
make a deposit · deposit rate · customer deposits · cash deposit · deposit money into an account
An everyday bank account for receiving a salary, paying bills and making card payments. It pays little or no interest, and the money can be used at any time.
Where you use it
British English; Americans say checking account. Customers open a current account, pay money into it and link a debit card to it. Many current accounts come with an overdraft.
Examples
Your salary will be paid into your current account on the 15th of each month.
She has a current account and two savings accounts with us.
Usage note
False friend: in Turkish accounting, 'cari hesap' is a running account with a customer or supplier, not a bank account. In economics, 'current account' is a country's balance of trade and income ('cari işlemler hesabı').
Common phrases
open a current account · personal current account · business current account · current account holder
A bank account for keeping money you do not need every day. It pays interest, but it may limit how often or how quickly you can take money out.
Where you use it
A standard retail product. Banks advertise the rate on a savings account, and customers move money into savings. Common types are easy-access accounts and fixed-term accounts; some need notice before a withdrawal.
Examples
I moved my bonus into a savings account so I wouldn't spend it.
The new savings account pays daily interest and has no withdrawal limit.
Common phrases
open a savings account · easy-access savings account · savings account rate · pay into a savings account
The amount of money in an account at a particular time, or the amount still owed on a loan or credit card.
Where you use it
Used with accounts, cards and loans. Customers check their balance in the app; a statement shows the opening and closing balance. 'Outstanding balance' means money still owed.
Examples
Your available balance is lower because a card payment is still pending.
Please pay the full balance by the due date to avoid interest.
Usage note
'Balance' is also a verb in finance: you balance the books. Do not confuse it with 'balance sheet', which is a financial statement.
Common phrases
check your balance · available balance · outstanding balance · opening balance · minimum balance
An arrangement that lets you spend more money than you have in your current account, up to an agreed limit, usually with interest charged on the negative balance.
Where you use it
Common in retail and business banking. A customer has, uses or goes into an overdraft, and the bank sets an overdraft limit. The adjective 'overdrawn' describes an account with a negative balance.
Examples
Her account went into overdraft after the rent payment.
Small businesses often use an overdraft to cover short gaps in cash flow.
Common phrases
overdraft limit · go into overdraft · arranged overdraft · overdraft fee · pay off an overdraft
A document from the bank that lists all the transactions in an account over a period, with the opening and closing balance.
Where you use it
Used in branches, onboarding and lending. Customers request, download or receive bank statements; lenders and visa offices often ask for the last three or six months of statements as proof of income.
Examples
Please upload your last three bank statements with your loan application.
The payment appears twice on my bank statement.
Common phrases
monthly bank statement · request a bank statement · download a bank statement · paper statement
Taking money out of a bank account, for example at a cash machine or in a branch, or the amount that is taken out.
Where you use it
Used in branches, card services and deposit products. People make a cash withdrawal; time deposits may have an early withdrawal penalty. The verb is 'withdraw': 'withdraw cash from an ATM'.
Examples
There is a daily limit on cash withdrawals from ATMs.
Large withdrawals in a branch may need to be booked a day in advance.
Common phrases
cash withdrawal · ATM withdrawal · make a withdrawal · early withdrawal · withdrawal limit
Money placed in a bank for a fixed period, such as 32 days or one year, at an agreed interest rate. Taking it out early usually means losing some or all of the interest.
Where you use it
Very common in Turkish banking and corporate treasury. Also called a term deposit (UK, Australia) or a certificate of deposit, CD (US). Customers open, renew or break a time deposit, and it matures on the maturity date.
Examples
She opened a 32-day time deposit with her savings.
If you break the time deposit before maturity, you will lose the interest.
Common phrases
open a time deposit · break a time deposit · time deposit rate · renew a time deposit
Fees that a bank takes for its services, such as account maintenance, transfers, overdrafts or replacing a card.
Where you use it
Common in customer complaints and pricing discussions. Banks apply, waive or refund charges, and customers dispute them. More formal documents use 'fees and commissions' or 'tariff of charges'.
Examples
The customer is complaining about bank charges for international transfers.
We refunded the bank charges because the delay was our mistake.
Common phrases
refund bank charges · waive bank charges · account maintenance fee · tariff of charges
A public scheme that protects bank customers' deposits up to a set limit if their bank fails.
Where you use it
Used in retail banking, regulation and crisis news. Deposits are covered or insured up to a limit, and amounts above it are uninsured. Examples are the FDIC in the US, the FSCS in the UK and the TMSF in Türkiye.
Examples
Deposit insurance helped prevent a bank run after the small lender collapsed.
The branch displays a notice explaining how deposit insurance protects savings.
The person or company in whose name a bank account is opened and who has the legal right to use it.
Where you use it
Used in account forms, terms and conditions and customer service. Banks verify the account holder's identity, and only the account holder or an authorised signatory can give instructions. A joint account has two or more account holders. Transfer screens often show the account holder name so that senders can check it.
Examples
For security reasons, we can only discuss the account with the account holder.
The IBAN you entered does not match the account holder's name.
To start a new relationship with a bank by creating an account in your name, usually after showing identification and signing an agreement.
Where you use it
The standard phrase in branches, apps and adverts. Customers open an account in a branch, online or by video call, and the bank carries out KYC checks first. The opposite is 'close an account'. The noun is 'account opening': the account opening process.
Examples
You can open an account in ten minutes through our mobile app.
She opened an account in euros to receive payments from her German clients.
Common phrases
open an account online · close an account · account opening process · account opening form
The amount of money in an account that you can actually spend or withdraw right now, after pending payments and holds are taken into account.
Where you use it
Seen in apps, at ATMs and on statements. The available balance can be lower than the current or ledger balance because of card authorizations, uncleared cheques or blocked amounts. Depending on the bank, it may also include an unused overdraft limit.
Examples
Your available balance is lower because the hotel has put a hold on your card.
The payment failed because the available balance was not enough.
Common phrases
check your available balance · available balance and current balance · ledger balance · available credit
A bank account shared by two or more people, such as a couple or business partners, who all have rights over the money in it.
Where you use it
Used in retail banking and account forms. Couples often open a joint account for household bills. The account mandate says whether each holder can act alone ('either to sign') or whether all must sign together ('all to sign'). All holders are usually responsible for any overdraft.
Examples
We opened a joint account to pay the rent and the bills.
Withdrawals from this joint account need the signatures of both holders.
Common phrases
open a joint account · joint account holder · either-to-sign account · joint and several liability
A bank account that holds money in a currency other than the local one, such as US dollars or euros in a Turkish bank.
Where you use it
Used by exporters, importers, savers and people who receive money from abroad. Companies keep foreign currency accounts to receive and make payments without converting each time. People also say 'FX account', and bank reports talk about 'FX deposits'.
Examples
Our exporters keep their euro income in foreign currency accounts until they pay their suppliers.
You can open a foreign currency account in dollars, euros or pounds from the app.
Common phrases
open a foreign currency account · FX deposits · USD account · foreign currency deposit
An instruction from a customer to their bank to pay a fixed amount to the same person or account at regular intervals, for example every month.
Where you use it
Mainly British English. Customers set up, amend or cancel a standing order, often for rent or regular savings. Unlike a direct debit, where the company collects an amount that can change, a standing order is controlled by the payer and the amount is fixed. Americans usually say 'recurring transfer'.
Examples
I've set up a standing order to pay the rent on the first of every month.
Please cancel the standing order to my old landlord's account.
Common phrases
set up a standing order · cancel a standing order · monthly standing order · recurring transfer
Money in a bank account that the customer can withdraw at any time without notice, such as the balance in a current account.
Where you use it
Used in bank financial statements, treasury and regulation. Demand deposits usually pay little or no interest, so they are cheap funding for banks, but they can leave quickly. Analysts watch the share of demand deposits in total deposits. The opposite is time deposits.
Examples
Demand deposits make up about a third of our total deposits.
The growth in demand deposits lowered the bank's funding costs.
Usage note
In British and European usage, demand deposits are also called 'sight deposits'.
A bank account in which the customer has made no transactions for a long period, so the bank restricts it and treats it with extra care.
Where you use it
Used in operations, compliance and customer service. An account becomes dormant after a period set by the bank or by law. Reactivating it usually requires identity checks, because criminals may try to use dormant accounts for fraud. Money left untouched for many years may eventually pass to a state fund.
Examples
Your account has become dormant, so please visit a branch with your ID to reactivate it.
The fraud team spotted sudden large transfers into a dormant account.
A plastic or digital card that lets you buy now and pay the bank later. You can spend up to a limit and pay interest if you do not repay the full amount on time.
Where you use it
Used daily by card issuers, call centres and customers. People apply for, use, pay off or cancel a credit card; banks talk about the card's limit, statement, due date and annual fee.
Examples
The customer wants to raise the limit on her credit card before her holiday.
If you only make the minimum payment, interest is charged on the rest of your credit card balance.
Common phrases
apply for a credit card · credit card statement · credit card debt · pay by credit card · annual fee
A card linked to your bank account that takes money directly from your balance when you pay or use a cash machine.
Where you use it
Very common in retail banking. Customers pay by debit card, use it at ATMs and block it if it is lost. A debit card uses the customer's own money, so there is no credit limit, only the balance and daily limits.
Examples
My debit card was declined because I had reached the daily spending limit.
We will send your new debit card to your home address within five working days.
Usage note
A direct translation gives 'bank card', which is understood, but the standard English term is 'debit card'. In Turkish it is 'banka kartı', never 'borç kartı'.
Common phrases
pay by debit card · block a debit card · debit card payment · contactless debit card
An electronic transfer of money from one bank account to another, often between different banks or countries.
Where you use it
Mostly American; in the UK people usually say bank transfer. You send, make or receive a wire transfer. International wires usually travel over the SWIFT network and may carry fees from intermediary banks.
Examples
The supplier wants payment by wire transfer before shipping the goods.
International wire transfers usually arrive within one to three business days.
Usage note
As a verb, Americans simply say 'wire': 'I'll wire the money tomorrow.'
Common phrases
send a wire transfer · international wire transfer · wire transfer fee · receive a wire transfer
Short for International Bank Account Number: a standard code of up to 34 letters and digits that identifies a bank account for domestic and cross-border transfers.
Where you use it
Used on invoices, payment forms and transfer screens. It starts with a country code: Turkish IBANs start with TR and have 26 characters. For international payments the sender usually also needs the bank's SWIFT/BIC code. Usually said as one word: EYE-ban.
Examples
Please send us your IBAN so we can pay your invoice.
The transfer was returned because the IBAN had a missing digit.
Usage note
'IBAN number' repeats itself, because the N already means 'number', but it is very common in everyday English.
Common phrases
IBAN number · enter the IBAN · IBAN and SWIFT code · valid IBAN
A single movement of money, such as a payment, transfer, deposit or withdrawal, recorded on an account or card.
Where you use it
One of the most frequent words in banking. Customers make, approve, dispute or cancel transactions; banks show pending and completed transactions and monitor them for fraud. 'Transaction history' is the list of past transactions.
Examples
I don't recognise this transaction on my card. Can you check it?
All transactions above a certain amount are checked automatically by the fraud system.
Common phrases
transaction history · pending transaction · dispute a transaction · transaction fee · suspicious transaction
The maximum amount a bank allows a customer to borrow on a credit card or a credit line.
Where you use it
Used with cards, overdrafts and business credit lines. Banks set, raise or reduce a credit limit; customers reach, exceed or go over their limit. 'Available credit' is the part of the limit not yet used.
Examples
The customer asked us to raise her credit limit before her trip.
The payment was declined because it would exceed the credit limit.
Common phrases
raise a credit limit · exceed the credit limit · credit limit increase · available credit
Paying by holding a card, phone or watch near a card reader, without inserting the card or, for small amounts, entering a PIN.
Where you use it
Used in retail payments and card product teams. Customers tap or wave their card; cards and phones use NFC technology. Each country sets a contactless limit, and above it a PIN is needed.
Examples
Most card payments in our cafés are now contactless payments.
Contactless payment is quicker, but the card asks for a PIN above the limit.
Common phrases
contactless payment limit · contactless card · tap to pay · make a contactless payment
The smallest amount a credit card holder must pay by the due date to keep the account in good standing. Interest is usually charged on the rest.
Where you use it
Used on card statements and in collections. Customers make or miss the minimum payment, and regulators often set rules for how it is calculated. Paying only the minimum keeps the card active but makes the debt last longer.
Examples
If you miss the minimum payment, a late fee will be added to your card.
The minimum payment on this statement is 1,500 lira.
Common phrases
make the minimum payment · miss the minimum payment · minimum payment due · pay only the minimum
An instruction that lets a company collect regular payments, such as bills or subscriptions, directly from your bank account.
Where you use it
Common in UK and European banking. Customers set up or cancel a direct debit, and the company collects payment by direct debit. Unlike a standing order, the company decides the amount and date within the agreement.
Examples
I pay my electricity bill by direct debit.
The gym's direct debit failed because there wasn't enough money in the account.
Common phrases
set up a direct debit · cancel a direct debit · pay by direct debit · direct debit mandate
The reversal of a card payment after the cardholder disputes it, for example because of fraud or goods that never arrived. The money is taken back from the merchant.
Where you use it
Used in card operations, disputes and merchant services. A cardholder raises a dispute, the issuing bank starts a chargeback under the card scheme's rules, and the merchant can challenge it. A high chargeback rate can bring merchants extra fees.
Examples
The customer never received the order, so we raised a chargeback with the merchant's bank.
Online shops with too many chargebacks may lose their payment account.
A business that accepts card or digital payments from customers for goods or services, such as a shop, restaurant or online store.
Where you use it
The standard term in card payments. Banks sign up merchants, set the merchant fee (merchant discount rate) and provide POS terminals. The bank serving the merchant is the acquirer; the cardholder's bank is the issuer.
Examples
The merchant fee for this restaurant is 1.8 percent per transaction.
We signed up 2,000 new merchants after launching our virtual POS.
Usage note
In older or general English, 'merchant' means a trader, as in 'merchant ship'. In card payments it simply means the business that sells.
A device at a point of sale, such as a shop counter, that reads payment cards or phones and sends the payment for approval.
Where you use it
POS stands for point of sale. Banks install, rent out and update POS terminals for merchants; online shops use a virtual POS or payment gateway. In everyday speech people also say 'card reader' or, in the UK, 'card machine'.
Examples
The POS terminal at the checkout is offline, so we can only take cash today.
Our new POS terminals accept contactless payments and QR codes.
Common phrases
install a POS terminal · POS transaction · virtual POS · mobile POS
Short for automated teller machine: a machine where customers use a card or phone to withdraw or deposit cash and do other banking without staff.
Where you use it
Used everywhere in retail banking and said letter by letter. Customers withdraw cash from an ATM, and an ATM can retain (swallow) a card. Many ATMs now accept deposits and cardless withdrawals with a QR code. In the UK people also say 'cash machine' or 'cashpoint'.
Examples
The ATM kept my card because I entered the wrong PIN three times.
We are replacing old ATMs with machines that also accept cash deposits.
Usage note
'ATM machine' and 'PIN number' are very common, even though the last word repeats part of the abbreviation.
Common phrases
withdraw cash from an ATM · ATM network · ATM fee · cardless ATM withdrawal
Short for personal identification number: a secret code, usually four to six digits, that proves you are the cardholder when you use a card.
Where you use it
Said as one word, 'pin'. Customers enter, change or reset their PIN, and a card is blocked after too many wrong attempts. Banks never ask for a PIN by phone, email or text message, a warning repeated in every fraud awareness campaign.
Examples
Please cover the keypad with your hand when you enter your PIN.
Your card has been blocked after three incorrect PIN attempts.
Usage note
In English, PIN is for cards and short numeric codes; the secret word you use to log in to online banking is a 'password'. Turkish uses 'şifre' for both.
Common phrases
enter your PIN · change your PIN · PIN reset · incorrect PIN · chip and PIN
The person or company that receives money from a payment, a letter of credit, an insurance policy or a will.
Where you use it
Used in money transfers, trade finance and insurance. In a transfer form you enter the beneficiary name, beneficiary bank and IBAN. Apps let customers add or save a beneficiary so that later payments are faster. The sender is the 'remitter' or 'payer'.
Examples
Please check the beneficiary's IBAN carefully before you confirm the transfer.
The exporter is the beneficiary of the letter of credit.
Usage note
Do not confuse 'beneficiary' (who receives a payment) with 'beneficial owner' (the real person who ultimately owns or controls a company).
Common phrases
beneficiary name · beneficiary bank · add a beneficiary · beneficiary account
The last day by which a bill, card statement or loan instalment must be paid to avoid late fees or extra interest.
Where you use it
Common on card statements, invoices and loan schedules. Customers pay on or before the due date; after it, a payment is late or overdue. On a credit card, the statement date and the due date are different days. 'Due' alone means 'to be paid': payment is due on the 5th.
Examples
If you pay the full statement balance by the due date, no interest is charged on your purchases.
The invoice is past its due date, so please send the client a reminder.
Usage note
Outside banking, 'due date' is also the day a baby is expected to be born.
Common phrases
payment due date · pay by the due date · past the due date · overdue payment
To refuse a card payment, transaction or application. When a card is declined, the payment does not go through.
Where you use it
Very common in the passive: 'my card was declined', 'the transaction was declined'. Typical reasons are insufficient funds, a wrong PIN, an expired card or a fraud check. Banks also decline loan applications. As a noun, 'decline' also means a fall: a decline in profits.
Examples
My card was declined at the supermarket, but I have money in my account.
We declined the application because the applicant's income could not be verified.
Common phrases
card declined · declined transaction · decline an application · decline a payment
A printed paper order that tells a bank to pay a stated amount from the writer's account to the person or company named on it.
Where you use it
Rare in everyday consumer banking in many countries, but still common in business payments in Türkiye, where post-dated cheques are widely used to give trade credit. You write or issue a cheque, and the receiver deposits or cashes it. A cheque that is not paid because of insufficient funds 'bounces'.
Examples
Our supplier accepts post-dated cheques with a maturity of up to 90 days.
It can take a few working days for a cheque to clear.
Usage note
'Cheque' is the British spelling; American English writes 'check'. Both are pronounced like 'check'.
Common phrases
write a cheque · cash a cheque · post-dated cheque · cheque book · bounced cheque
Cash taken from a credit card account, for example at an ATM. It is borrowed money and usually costs more than a normal card purchase.
Where you use it
Used on card statements, in fee tables and in customer complaints. Customers take a cash advance up to a separate cash limit. It normally carries a fee and interest from the day of withdrawal, with no interest-free period. Some banks also offer cash advances repaid in instalments.
Examples
A cash advance on your credit card starts to accrue interest immediately.
He took a cash advance to cover an unexpected repair bill.
Common phrases
cash advance limit · cash advance fee · take a cash advance · instalment cash advance
The person to whom a payment card is issued and who is allowed to use it; for company cards, the named employee who uses the card.
Where you use it
Used in card agreements, disputes and card scheme rules. The cardholder signs the agreement, disputes unknown transactions and is protected by chargeback rules. Schemes talk about cardholder verification (PIN, signature or biometrics) and 'cardholder not present' transactions online.
Examples
The cardholder says she did not make these three online purchases.
Supplementary cards can be issued to family members of the main cardholder.
The card issuer's approval of a card transaction at the moment it is made, after checking the card, the available limit and signs of fraud.
Where you use it
Used in card operations. The merchant requests an authorization, and the issuer approves or declines it in seconds. Hotels and car rental firms often take a pre-authorization, which holds part of the limit until the final amount is known. In general English it also means official permission. British spelling: authorisation.
Examples
The authorization was approved, but the merchant has not completed the sale yet.
The hotel took a pre-authorization of 5,000 lira when we checked in.
Common phrases
request an authorization · authorization code · pre-authorization · authorization hold
Of a cheque or payment: to be returned unpaid by the bank, usually because there is not enough money in the payer's account.
Where you use it
Informal but very common. A cheque bounces, and a direct debit or other payment can bounce too. Formal documents say the cheque was 'dishonoured' or 'returned unpaid'. In Türkiye a bounced cheque (karşılıksız çek) has legal consequences for the drawer and appears in credit records. Emails that cannot be delivered also bounce.
Examples
The customer's cheque bounced, so the supplier has stopped deliveries.
Make sure there is money in the account, or the rent payment will bounce.
Common phrases
a cheque bounces · bounced cheque · bounced payment · returned unpaid
A code of 8 or 11 letters and numbers that identifies a specific bank, and sometimes a branch, in international payments. It is also called a BIC.
Where you use it
Needed for most international transfers, together with the IBAN. The code shows the bank, the country and the location; the last three characters, if present, show the branch. SWIFT itself is the global network banks use to send payment messages, so people also talk about 'SWIFT messages' and 'SWIFT transfers'.
Examples
To receive money from abroad, give the sender your IBAN and our SWIFT code.
The transfer was rejected because the SWIFT code did not match the beneficiary bank.
Usage note
SWIFT is pronounced like the word 'swift'. It stands for Society for Worldwide Interbank Financial Telecommunication.
Common phrases
SWIFT code · SWIFT/BIC · SWIFT message · SWIFT transfer
A security step for online card payments in which the card issuer asks the cardholder to confirm the purchase, usually with a one-time code or in the banking app.
Where you use it
Used in e-commerce and card fraud prevention, often written 3DS. Shoppers are redirected to a 3-D Secure page, and merchants can make it compulsory. Card schemes brand it as Visa Secure, Mastercard Identity Check and so on. When a payment is authenticated this way, fraud losses often shift from the merchant to the issuer.
Examples
The payment failed because the customer closed the 3-D Secure window before confirming.
We require 3-D Secure for all first-time purchases on our website.
The final step of a payment or trade, when money or securities actually move from one party to the other and the deal is complete.
Where you use it
Used in payments, cards and securities. Clearing comes first and works out who owes what; settlement then moves the funds. In securities, T+2 means settlement two business days after the trade date. Outside finance, a settlement is also an agreement that ends a dispute.
Examples
Card transactions are sent to the scheme for clearing and settlement at the end of the day.
Settlement of the bond trade will take place on Thursday.
Common phrases
clearing and settlement · settlement date · T+2 settlement · settlement risk · net settlement
Money that a bank or another lender gives to a person or company, which must be paid back over time, usually with interest.
Where you use it
The basic product of lending. You apply for a loan, take out a loan and repay it. Banks speak of personal loans, car loans, business loans and the loan book (all the loans a bank holds).
Examples
The customer applied for a 36-month personal loan to renovate her kitchen.
Our loan book grew by 12 percent this year, mostly in SME lending.
Usage note
Turkish 'kredi' is usually 'loan' in English. 'Credit' is wider: it can mean borrowing in general ('access to credit') or money added to an account.
Common phrases
apply for a loan · approve a loan · repay a loan · personal loan · loan agreement
A long-term loan used to buy a home or other property. The property secures the loan, so the lender can have it sold if the borrower does not repay.
Where you use it
Central to retail lending. Customers apply for, take out and pay off a mortgage; banks talk about mortgage rates, terms of 15 to 30 years and loan-to-value (LTV). Borrowers make monthly mortgage payments.
Examples
They took out a 20-year mortgage to buy a flat in Izmir.
Mortgage rates fell, so many borrowers are asking about refinancing.
Usage note
Pronunciation trap: the 't' is silent, so it sounds like MOR-gij.
Common phrases
take out a mortgage · mortgage rate · mortgage payment · pay off a mortgage · mortgage application
An asset, such as property, cash or securities, that a borrower pledges to a lender and that the lender can sell if the loan is not repaid.
Where you use it
Used in credit departments, loan agreements and risk reports. A borrower provides or pledges collateral; the bank values it and may ask for more if its value falls. Loans backed by collateral are called secured loans.
Examples
The company offered its warehouse as collateral for the working capital loan.
If the value of the collateral drops, we may ask the client for additional security.
Usage note
Do not mix it up with 'guarantee' (a promise from a person or bank) or 'guarantor' (the person who gives that promise). Collateral is an asset, not a person.
Common phrases
provide collateral · pledge collateral · collateral value · cash collateral · additional collateral
A number that shows how likely a person is to repay debts, calculated from their credit history, such as past loans, card use and late payments.
Where you use it
Used in retail lending and by customers. Lenders check a credit score before approving a loan or a card; late payments damage or lower it, and paying on time improves it. Credit bureaus calculate the score.
Examples
Her application was rejected because her credit score was too low.
The bank's model gives more weight to recent late payments when it calculates the credit score.
Usage note
In everyday speech 'credit rating' is sometimes used for people too, but in finance a credit rating usually means the grade that agencies such as Moody's or S&P give to companies and countries.
Common phrases
check a credit score · good credit score · low credit score · improve a credit score
The original amount of money borrowed or invested, not including interest. Each loan payment usually covers some interest and some principal.
Where you use it
Used in loan agreements, payment plans and customer calls. People repay or pay down the principal; the outstanding principal is what is still owed. 'Principal and interest' is a fixed phrase.
Examples
In the first years of a mortgage, most of each payment goes to interest, not principal.
The customer wants to make an extra payment to reduce the principal.
Usage note
Do not confuse 'principal' (the main amount; also 'main' or a school head) with 'principle' (a rule or belief). They sound the same.
Common phrases
repay the principal · outstanding principal · principal and interest · principal amount
One of a series of regular payments used to repay a loan or to pay for something bought on credit.
Where you use it
Used for loans and card purchases. You pay in installments, miss an installment or pay the monthly installment. Banks also talk about installment loans and installment plans.
Examples
The customer has missed two installments on his car loan.
You can pay for the laptop in six interest-free monthly installments.
Usage note
US spelling 'installment', UK spelling 'instalment'. Both are correct.
Common phrases
monthly installment · pay in installments · miss an installment · installment loan · installment plan
A person or organisation that receives money from a lender and agrees to pay it back, usually with interest.
Where you use it
The standard word in loan documents and credit reports. Banks assess, lend to and monitor borrowers. Common phrases: retail borrowers, corporate borrowers and first-time borrowers.
Examples
The borrower must provide audited financial statements every year.
Higher rates are making it harder for first-time borrowers to buy a home.
Common phrases
first-time borrower · corporate borrower · lend to a borrower · borrower's income
A bank, company or person that gives money to a borrower, expecting it to be paid back with interest.
Where you use it
Common in loan documents, news and credit discussions. Frequent phrases are mortgage lender, online lender and lender of last resort (the central bank). Several banks lending together form a syndicate of lenders.
Examples
Most lenders ask for proof of income before approving a mortgage.
We were the lead lender in the company's syndicated loan.
Usage note
The verb is 'lend' (lent, lent): the bank lends money to you, and you borrow money from the bank.
Common phrases
mortgage lender · lead lender · lender of last resort · online lender
To borrow money from a bank or another lender under an agreement to repay it over time.
Where you use it
The natural way to say that someone gets a loan. The same verb works in 'take out a mortgage' and 'take out insurance'. Bankers also say 'get a loan', 'borrow' or, more formally, 'obtain financing'.
Examples
They are taking out a loan to buy new machinery for the factory.
Many students take out a loan to pay for a master's degree abroad.
Usage note
Past forms: 'took out a loan', 'have taken out a loan'. Do not say 'pull a loan', a word-for-word translation of 'kredi çekmek'.
Common phrases
take out a personal loan · take out a mortgage · take out a business loan · take out a loan with a bank
To pay back the whole amount of a debt, such as a loan, mortgage or credit card balance, so that nothing more is owed.
Where you use it
Very common in customer conversations. You pay off a loan early or pay it off in full; 'pay down' means reducing a debt without clearing it. The payoff amount is the sum needed to close a loan on a given date.
Examples
He wants to pay off his car loan early with his bonus.
Customers who pay off the card balance in full each month pay no interest.
Usage note
In general English, 'pay off' also means 'to bring good results': 'Our hard work paid off.'
Common phrases
pay off a loan · pay off a mortgage · pay off debt · pay off in full · pay off early
Not yet paid or settled. An outstanding loan or invoice still has money owed on it.
Where you use it
Used in loan statements, collections and accounting. Common phrases are outstanding balance, outstanding debt, outstanding invoices and outstanding amount. In general English it also means 'excellent'.
Examples
The outstanding balance on the loan is 120,000 lira.
The client still has several outstanding invoices from last quarter.
Usage note
The stress is on the second syllable: out-STAND-ing. Only the context shows whether it means 'unpaid' or 'excellent'.
A person or company that promises to repay a loan if the borrower cannot. The lender can then ask the guarantor to pay.
Where you use it
Used in consumer and SME lending and in loan documents. A guarantor signs a guarantee and stands as guarantor for someone; banks check the guarantor's income and credit history too. Company owners often give a personal guarantee.
Examples
The bank will approve the loan if your father acts as guarantor.
The two shareholders signed as guarantors for the company's credit line.
Usage note
A 'guarantee' (or 'letter of guarantee', teminat mektubu) is the promise or document; the 'guarantor' is the person or company that gives it.
Common phrases
act as guarantor · personal guarantor · joint guarantor · guarantor's signature
A loan given without collateral, based only on the borrower's income and credit history. It usually has a higher interest rate than a secured loan.
Where you use it
Common in retail lending: most personal loans and credit cards are unsecured. The opposite is a secured loan, such as a mortgage or car loan. Lenders price unsecured loans higher because recovering money after a default is harder.
Examples
Unsecured loans carry higher rates because the bank has nothing to sell if the borrower defaults.
She took out an unsecured loan to pay for her wedding.
Common phrases
unsecured personal loan · secured and unsecured loans · unsecured lending · unsecured debt
Money that a person, company or government has borrowed and must pay back, usually with interest.
Where you use it
One of the most common words in banking. People get into debt, pay off or clear their debts, and banks look at a customer's total debt before lending. Companies compare debt with equity or EBITDA. 'Bad debt' is money that will probably never be repaid.
Examples
The company used part of the IPO proceeds to reduce its debt.
Before we approve the loan, we need to see all your existing debts.
Usage note
The 'b' is silent: debt sounds like 'det'. The person who owes money is the 'debtor'; the one who is owed is the 'creditor'.
Common phrases
get into debt · pay off a debt · debt burden · bad debt · debt collection
The act of paying back money you have borrowed, or one of the regular amounts you pay to do this.
Where you use it
Used in loan offers, contracts and collections. Borrowers make or miss repayments, and the repayment schedule shows each date and amount. In British English 'monthly repayments' is the everyday way to talk about loan instalments.
Examples
Your monthly repayments will stay the same for the whole term of the loan.
He missed two repayments, so the account was passed to the collections team.
Common phrases
monthly repayments · repayment schedule · make a repayment · miss a repayment · repayment period
A loan given to an individual for personal needs such as a car repair, a wedding or education, and repaid in fixed instalments over a set period.
Where you use it
A core retail banking product. Customers apply for, take out and repay a personal loan. Most personal loans are unsecured, and the rate offered depends on the customer's credit score. 'Consumer loan' is the wider category that also covers car loans and other credit.
Examples
She took out a personal loan to pay for her master's degree.
Personal loan applications rose sharply after the rate cut.
Common phrases
apply for a personal loan · personal loan rate · pre-approved personal loan · consumer loan
The part of the price of a house, car or other large purchase that the buyer pays in cash at the start, with the rest usually covered by a loan.
Where you use it
Used in mortgage and car finance. Buyers save for, make or put down a down payment. A larger down payment means a smaller loan and lower risk for the bank. Regulators in many countries, including Türkiye, can limit how much of a home's or car's value may be financed, which sets a minimum down payment.
Examples
They made a 30% down payment and borrowed the rest from the bank.
First-time buyers often find it hard to save for a down payment.
Usage note
In British English the down payment on a house is usually called a 'deposit', which can be confused with a bank deposit.
Common phrases
make a down payment · put down a down payment · minimum down payment · save for a down payment
A loan backed by an asset, such as a house, car or deposit, that the lender can take and sell if the borrower does not repay.
Where you use it
Used in credit policy and loan products. Mortgages and car loans are typical secured loans. Because the bank holds collateral, secured loans usually have lower rates and higher amounts than unsecured loans. Bankers say a loan is 'secured on' or 'secured against' a property.
Examples
A secured loan against your apartment would give you a lower rate.
Nearly all of our SME portfolio consists of secured loans backed by property or vehicles.
Common phrases
secured loan · secured on a property · fully secured · secured lending
How likely a person or company is to repay borrowed money on time, judged from income, existing debt, payment history and financial strength.
Where you use it
Used in credit analysis and lending policy. Banks assess or check a borrower's creditworthiness before lending. For individuals it is measured with credit scores; for companies and countries with financial analysis and credit ratings. The adjective is 'creditworthy'.
Examples
We assess the creditworthiness of every SME using its last three years of financial statements.
Late payments on other loans have damaged the customer's creditworthiness.
Paying back all or part of a loan before the dates set in the contract, which reduces the total interest the borrower pays.
Where you use it
Used in loan contracts and customer service. Customers make a partial or full early repayment; 'prepayment' means the same. Some loans carry an early repayment charge to cover the lender's lost interest. For consumers, the rules on such charges are set by consumer protection law and differ by country and loan type.
Examples
If you make an early repayment, your remaining instalments will be recalculated.
Is there an early repayment charge if I close the mortgage next year?
Common phrases
early repayment charge · make an early repayment · partial early repayment · prepayment penalty
A period at the start of a loan when the borrower does not have to repay principal, or extra time after a due date before penalties apply.
Where you use it
Used in investment, project and student loans and in card terms. A grace period on principal is common in investment loans, while interest may still be paid during it. Banks grant or extend a grace period. On credit cards, some writers use 'grace period' for the interest-free period.
Examples
The investment loan has a seven-year term with a two-year grace period on principal.
After the floods, the bank offered affected customers a three-month grace period.
Common phrases
grace period on principal · grant a grace period · two-year grace period · interest-only period
Money that should already have been paid, such as missed loan instalments, rent or bills. A borrower who has missed payments is 'in arrears'.
Where you use it
Used in collections and credit risk, especially in British banking. Customers fall into arrears, are in arrears with their mortgage or clear their arrears. Banks track arrears in days past due (DPD); loans more than 90 days in arrears are usually treated as non-performing. The word is always plural.
Examples
About 2% of our mortgage customers are more than one month in arrears.
The customer agreed a plan to clear her arrears over six months.
Usage note
'Paid in arrears' means something different: paid at the end of the period it covers, as most salaries are.
Common phrases
in arrears · fall into arrears · clear arrears · mortgage arrears · days past due
To replace an existing loan with a new one, usually to get a lower interest rate, a longer term or different conditions.
Where you use it
Used in mortgages and corporate finance. Homeowners refinance their mortgage when rates fall; companies refinance maturing debt with new bonds or loans. The noun is 'refinancing'. Refinancing risk is the danger that debt cannot be renewed on acceptable terms when it matures.
Examples
Many customers want to refinance their mortgages now that rates have come down.
The group plans to refinance its syndicated loan before it matures next year.
Changing the terms of a loan, such as the maturity, instalments or interest, because the borrower has difficulty paying; also the reorganisation of a whole company.
Where you use it
Used in collections, credit risk and corporate banking. Banks offer, agree or carry out a debt restructuring, and the loan is then monitored closely as a restructured loan. In large cases several lenders sign a restructuring agreement together. In company news it can also mean job cuts and reorganised units.
Examples
The loan restructuring extended the term by three years and lowered the instalments.
We have agreed a debt restructuring with the company's main lenders.
An arrangement in which a bank agrees to lend a company up to a set amount, which the company can draw on as needed under agreed terms.
Where you use it
The standard term in corporate lending documents. Banks grant, renew, increase or cancel a facility, and the company draws down on it. Facilities can be cash loans, revolving credit facilities (RCF) or non-cash facilities such as letters of guarantee. Bankers often just say 'the facility' or 'limits'.
Examples
The credit committee approved a 50 million lira credit facility for the client.
The company has drawn only half of its revolving credit facility.
Common phrases
grant a credit facility · revolving credit facility · draw down a facility · facility agreement · non-cash facilities
A large loan provided by a group of banks together under one agreement, so that no single bank takes all the risk.
Where you use it
Used in corporate and international banking. One or more arrangers organise the deal, an agent bank manages payments, and participating banks join the syndicate. Turkish banks regularly borrow from international banks through syndicated loans and renew them at maturity. Key terms include margin, tenor and rollover ratio.
Examples
The bank renewed its syndicated loan with 40 international lenders.
We are joining the syndicated loan for the airport project as a participant bank.
Common phrases
syndicated loan · arrange a syndicated loan · agent bank · rollover ratio · syndicated facility
A promise in a loan or bond agreement that the borrower will or will not do certain things, such as keeping its debt below a set level.
Where you use it
Used in corporate lending and loan documents. Financial covenants set ratios such as maximum net debt/EBITDA; other covenants limit new borrowing, asset sales or dividends. A borrower that breaches a covenant may have to ask for a waiver, or the lender can demand early repayment.
Examples
The loan has a covenant that net debt must stay below three times EBITDA.
The company breached its covenants and asked the banks for a waiver.
The price of borrowing money, shown as a percentage of the amount borrowed or saved for a period, usually one year.
Where you use it
Used everywhere in banking: loan offers, deposit products, central bank decisions and the news. Rates go up, rise, fall or are cut; banks charge interest on loans and pay interest on deposits.
Examples
Our interest rate on business loans is linked to the central bank's policy rate.
Many customers are waiting for interest rates to come down before they take out a mortgage.
Usage note
Say 'interest rate', not 'interest ratio'. 'Interest' alone also means the money paid: 'We paid 5,000 lira in interest.'
An interest rate that stays the same for the whole loan or deposit term, or for an agreed period, so the payments do not change.
Where you use it
Used for loans, mortgages, deposits and bonds. A borrower fixes the rate or takes a fixed-rate loan; in the UK, mortgages are often fixed for two or five years. Write 'fixed-rate' with a hyphen before a noun.
Examples
Most of our consumer loans are at a fixed rate, so the installment never changes.
She chose a five-year fixed-rate mortgage.
Common phrases
fixed-rate loan · fixed-rate mortgage · fixed-rate bond · lock in a fixed rate
An interest rate that can go up or down during a loan or deposit term, usually because it follows a benchmark rate.
Where you use it
Also called a floating rate, or an adjustable rate for US mortgages. It is usually a benchmark plus a margin, such as SOFR or EURIBOR plus 2%. When the benchmark rises, the borrower's payments rise too.
Examples
With a variable rate, your monthly payment may change every three months.
The loan has a variable rate of EURIBOR plus 2.5 percent.
Short for annual percentage rate: the yearly cost of a loan or credit card shown as a percentage, including interest and certain required fees.
Where you use it
Used in consumer lending, adverts and disclosures, where lenders are often required to show it so that customers can compare offers. Said letter by letter: A-P-R. It differs from the plain interest rate, which leaves out fees.
Examples
The advertised rate looks low, but the APR is higher once you add the arrangement fee.
Credit card APRs are usually much higher than personal loan rates.
Usage note
For savings, the similar figure is APY (annual percentage yield) in the US or AER (annual equivalent rate) in the UK; both include compounding.
Common phrases
representative APR · compare the APR · APR on a credit card · high APR
The price of one currency in terms of another, for example how many Turkish lira you need to buy one euro.
Where you use it
Used daily on FX desks, in branches and in company finance teams. Banks quote a buying and a selling rate, and the gap is their margin. People talk about exchange rate risk and about the rate rising, falling or being fixed.
Examples
The exchange rate moved sharply after the inflation data was published.
We will use the exchange rate on the payment date to convert the invoice into euros.
The buying and selling of currencies, or foreign currency itself. It is often shortened to FX or forex.
Where you use it
Used in treasury, trade finance and branches. Banks have an FX desk; companies buy foreign exchange to pay suppliers and hedge foreign exchange risk. 'FX rate' means exchange rate.
Examples
Our foreign exchange desk can quote you a rate for the euro payment.
Foreign exchange losses hit the company's profit this quarter.
Interest calculated on both the original amount and the interest already added, so the total grows faster over time than with simple interest.
Where you use it
Used for savings, loans and in finance training. Interest can be compounded daily, monthly or yearly; the more often it is compounded, the higher the effective rate. It is contrasted with simple interest.
Examples
Thanks to compound interest, the deposit earned more in the second year than in the first.
Unpaid credit card debt grows quickly because of compound interest.
The date when a loan, deposit or bond ends and the principal must be repaid, or the length of time until that date.
Where you use it
Used across lending, deposits and treasury. A deposit or bond reaches maturity or is held to maturity, and the maturity date is set in the contract. Banks manage the maturity mismatch between short-term deposits and long-term loans.
Examples
Your time deposit reaches maturity on 15 June and will renew automatically.
The average maturity of our loan book is about three years.
Common phrases
maturity date · reach maturity · hold to maturity · maturity mismatch · at maturity
One hundredth of one percentage point (0.01%). It is used to describe small changes in interest rates and yields precisely.
Where you use it
Used in treasury, pricing and market news; often written bp or bps and said 'bips'. A rate rise from 5% to 5.25% is a 25 basis point increase. Professionals avoid 'a 0.25% increase', which is ambiguous.
Examples
The central bank raised its policy rate by 50 basis points.
We can lower the loan margin by 25 basis points if you move your payroll to us.
Common phrases
raise by 50 basis points · cut by 25 basis points · basis point increase · a few basis points
The main interest rate set by a central bank to steer the cost of money in the economy and bring inflation towards its target.
Where you use it
Used in economic news, treasury and pricing. The central bank raises, cuts or holds the policy rate, and banks then adjust their loan and deposit rates. In Türkiye it is the one-week repo auction rate; in the US, the target range for the federal funds rate.
Examples
After the policy rate cut, we lowered our consumer loan rates.
Economists expect the policy rate to stay unchanged this month.
Common phrases
raise the policy rate · cut the policy rate · policy rate decision · hold the policy rate
A general rise in prices over time, which means that the same amount of money buys less than before.
Where you use it
Central to interest rate decisions and loan pricing. Inflation rises, falls, slows or picks up, and central banks set an inflation target. It is usually measured with the consumer price index (CPI), which TurkStat (TÜİK) publishes every month. Bankers compare interest rates with inflation to judge real returns.
Examples
Annual inflation slowed for the third month in a row.
When inflation is high, deposit rates usually rise as well.
Common phrases
annual inflation · inflation target · high inflation · inflation rate · bring inflation down
The difference between two rates or prices, such as between a bank's lending and deposit rates, or between the buying and selling price of a currency.
Where you use it
The loan-deposit spread drives a bank's income; the FX spread is its margin on currency exchange; a credit spread is the extra yield a riskier borrower pays over a benchmark. Spreads widen or narrow (tighten) and are often quoted in basis points.
Examples
Our loan-deposit spread narrowed this quarter because deposit costs rose faster.
The bank's FX spread on euro sales is wider at weekends.
To build up gradually over time, as interest does on a loan or deposit; in accounting, to record income or costs when they are earned or incurred, not when cash moves.
Where you use it
Used in loan statements, deposits and accounting. Interest accrues daily on most accounts, and unpaid interest is called accrued interest. Accountants accrue expenses at month end; the noun is 'accrual'. When a bond is sold, the buyer pays the seller the interest accrued since the last coupon.
Examples
Interest accrues daily but is paid into your account at the end of the month.
We need to accrue the consultancy fees in March, even though the invoice will arrive in April.
Interest calculated only on the original amount borrowed or deposited, not on interest already earned, so it grows by the same amount each period.
Where you use it
Used in training, loan calculations and short-term deposits. The formula is principal × rate × time. Many short-term deposits pay simple interest at maturity, while longer savings usually compound. Comparing simple and compound interest is one of the first lessons in any finance course.
Examples
With simple interest, 10,000 lira at 10% a year earns exactly 1,000 lira each year.
This 32-day deposit pays simple interest at maturity.
An official decision by a government or central bank to lower the value of its currency against other currencies, usually under a fixed exchange rate system.
Where you use it
Used in economics, treasury and news. A country announces or carries out a devaluation; the verb is 'devalue'. Strictly, devaluation is a policy decision, while a currency that falls in a free market 'depreciates'. Devaluations make exports cheaper but raise the cost of imports and foreign currency debt.
Examples
The devaluation made the country's exports cheaper but raised the cost of imported energy.
Companies with dollar loans were hit hardest by the devaluation.
Usage note
In everyday Turkish, any sharp fall of a currency is often called 'devalüasyon'. In English, say 'depreciation' or 'the currency weakened' unless there was an official decision.
Of a currency or asset: to rise in value over time. The opposite is 'depreciate'.
Where you use it
Used in FX markets, treasury reports and real estate. A currency appreciates against another, and property can appreciate over the years. The noun is 'appreciation'. Market reports also use the everyday verbs 'strengthen' and 'weaken'.
Examples
The euro appreciated against the dollar after the ECB's decision.
Homes in the city centre have appreciated much faster than rents.
Usage note
In everyday English 'appreciate' usually means 'to be grateful for' (I appreciate your help). In finance it means 'to gain value'.
Common phrases
appreciate against the dollar · currency appreciation · capital appreciation · appreciate in value
Ten questions from this glossary. Pick the right meaning for each term and see your score.
How to learn finance & banking vocabulary
Learn terms in pairs: asset and liability, borrower and lender, fixed and variable rate, deposit and withdrawal. Pairs are easier to remember and appear together in real documents.
Read real texts from the field: put the English annual report of a Turkish bank next to its Turkish version, and read central bank press releases and loan agreements. Many Turkish banks publish their reports in both languages, which makes comparing terms easy.
Learn the verbs that go with each noun: you take out a loan, pay off a debt, charge interest, write off a bad loan and file a suspicious transaction report.
Notice US and UK differences: checking account and current account, check and cheque, installment and instalment, wire transfer and bank transfer.
Say abbreviations the way professionals do: KYC, AML and APR are spelled out letter by letter, while EBITDA and IBAN are said as words.
Frequently asked questions
Do Turkish bankers use the English terms or the Turkish ones?
Both. In everyday speech many English words are used as they are: KYC, fraud, hedge, spread, due diligence, NPL. Contracts, official letters and reports to regulators use Turkish terms such as 'müşterini tanı', 'dolandırıcılık' and 'takipteki krediler'. Knowing both versions lets you move easily between meetings, reports and international colleagues.
What is the difference between the interest rate and the APR?
The interest rate is the price of the borrowed money itself. The APR (annual percentage rate) shows the yearly cost of the loan including certain required fees, so it is usually higher and is the figure designed for comparing offers. In Turkish loan documents it corresponds to 'yıllık maliyet oranı'.
Why are customer deposits a liability for a bank?
Because the bank owes that money back to its customers. On a bank's balance sheet, deposits are liabilities and the loans it gives are assets, the exact opposite of how a customer sees them. Once you understand this mirror view, bank financial statements become much easier to read.
Is it 'take a loan' or 'take out a loan'?
'Take out a loan' is the natural phrase, just like 'take out a mortgage' or 'take out insurance'. You can also say 'get a loan' or simply 'borrow'. On the other side, the bank grants, approves or extends a loan.
On a bank statement, is a credit good or bad?
On your own bank statement, a credit is money coming into the account and a debit is money going out. In accounting, debit and credit are simply the two sides of every entry, so a credit can increase or decrease an account depending on its type. Check which point of view a document uses before you translate it.
