Finance & Banking Vocabulary: 334 Key English Terms

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.

One of the local offices of a bank, where customers can open accounts, apply for loans and get help face to face.

Banking services for individual customers, such as current accounts, savings, cards, personal loans and mortgages.

A bank that takes deposits from people and businesses and uses them to make loans and offer payment services.

Banking services for large companies, such as loans, cash management, trade finance and foreign exchange.

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.

An organisation that collects information about how people and companies use and repay credit, and provides credit reports and scores to lenders.

A bank employee who is the main contact for a group of clients, looks after their needs and offers them the bank's products.

A bank employee who serves customers at the counter, handling cash deposits, withdrawals, payments and other everyday transactions.

The main office of a bank or company, where senior management and central departments such as risk, finance and HR work.

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.

Personalised banking and investment services for wealthy individuals and families, usually provided through a dedicated adviser.

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.

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.

A financial cooperative owned by its members that provides savings and lending services.

A mutual financial institution, especially in the UK, focused on savings and mortgage lending.

A bank that safeguards clients' financial assets and administers associated settlement and income flows.

An institution that maintains securities accounts and supports their safekeeping and transfer.

An entity that stands between trading parties, becoming the buyer to sellers and seller to buyers.

A financial institution that supports economic development through financing and related assistance.

A temporary institution that takes over selected operations of a failing bank during resolution.

A bank whose distress could seriously disrupt the wider financial system or economy.

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.

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.

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.

The amount of money in an account at a particular time, or the amount still owed on a loan or credit card.

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.

A document from the bank that lists all the transactions in an account over a period, with the opening and closing balance.

Taking money out of a bank account, for example at a cash machine or in a branch, or the amount that is taken out.

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.

Fees that a bank takes for its services, such as account maintenance, transfers, overdrafts or replacing a card.

A public scheme that protects bank customers' deposits up to a set limit if their bank fails.

The person or company in whose name a bank account is opened and who has the legal right to use it.

To start a new relationship with a bank by creating an account in your name, usually after showing identification and signing an agreement.

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.

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.

A bank account that holds money in a currency other than the local one, such as US dollars or euros in a Turkish bank.

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.

Money in a bank account that the customer can withdraw at any time without notice, such as the balance in a current account.

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.

An account arrangement that automatically moves funds according to a balance rule or schedule.

An arrangement that combines or coordinates balances across accounts for group cash management.

Combining account balances for interest calculation without physically transferring the underlying funds.

The date assigned to a transaction for settlement or for calculating interest on funds.

A deposit placed with a bank through an intermediary that arranges deposits for customers.

The reduction of a bank's deposit funding as customers withdraw funds or do not renew deposits.

An account automatically funded or swept so that it returns to a target balance of zero.

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.

A card linked to your bank account that takes money directly from your balance when you pay or use a cash machine.

An electronic transfer of money from one bank account to another, often between different banks or countries.

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.

A single movement of money, such as a payment, transfer, deposit or withdrawal, recorded on an account or card.

The maximum amount a bank allows a customer to borrow on a credit card or a credit line.

Paying by holding a card, phone or watch near a card reader, without inserting the card or, for small amounts, entering a PIN.

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.

An instruction that lets a company collect regular payments, such as bills or subscriptions, directly from your bank account.

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.

A business that accepts card or digital payments from customers for goods or services, such as a shop, restaurant or online store.

A device at a point of sale, such as a shop counter, that reads payment cards or phones and sends the payment for approval.

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.

Short for personal identification number: a secret code, usually four to six digits, that proves you are the cardholder when you use a card.

The person or company that receives money from a payment, a letter of credit, an insurance policy or a will.

The last day by which a bill, card statement or loan instalment must be paid to avoid late fees or extra interest.

To refuse a card payment, transaction or application. When a card is declined, the payment does not go through.

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.

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.

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.

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.

Of a cheque or payment: to be returned unpaid by the bank, usually because there is not enough money in the payer's account.

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.

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.

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.

Settling transfers individually and continuously, without first offsetting them against other transfers.

Settling the net obligations from multiple payments at designated times after processing.

The point or quality at which a transfer becomes unconditional and irrevocable under applicable rules.

An arrangement linking two currency payments so that one settles only if the other settles.

Linking securities delivery with payment so that delivery occurs only if the corresponding payment occurs.

Credit provided during a business day to help meet payments or settlement obligations.

Stored instructions identifying the accounts and agents normally used to settle transactions.

A request to recover or stop a payment that has already been submitted.

A payment card whose balance is normally due in full each billing cycle under its terms.

A fee paid between payment-service providers in a card transaction, commonly from acquirer to issuer.

A service offering to convert a card purchase or withdrawal into the cardholder's currency at the point of use.

An instruction asking a bank not to pay a specified cheque or other eligible payment.

Money that a bank or another lender gives to a person or company, which must be paid back over time, usually with interest.

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.

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.

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.

The original amount of money borrowed or invested, not including interest. Each loan payment usually covers some interest and some principal.

One of a series of regular payments used to repay a loan or to pay for something bought on credit.

A person or organisation that receives money from a lender and agrees to pay it back, usually with interest.

A bank, company or person that gives money to a borrower, expecting it to be paid back with interest.

To borrow money from a bank or another lender under an agreement to repay it over time.

To pay back the whole amount of a debt, such as a loan, mortgage or credit card balance, so that nothing more is owed.

Not yet paid or settled. An outstanding loan or invoice still has money owed on it.

A person or company that promises to repay a loan if the borrower cannot. The lender can then ask the guarantor to pay.

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.

Money that a person, company or government has borrowed and must pay back, usually with interest.

The act of paying back money you have borrowed, or one of the regular amounts you pay to do this.

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.

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.

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.

How likely a person or company is to repay borrowed money on time, judged from income, existing debt, payment history and financial strength.

Paying back all or part of a loan before the dates set in the contract, which reduces the total interest the borrower pays.

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.

Money that should already have been paid, such as missed loan instalments, rent or bills. A borrower who has missed payments is 'in arrears'.

To replace an existing loan with a new one, usually to get a lower interest rate, a longer term or different conditions.

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.

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.

A large loan provided by a group of banks together under one agreement, so that no single bank takes all the risk.

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.

A final loan payment substantially larger than the regular payments made before it.

A loan whose principal is repaid in one amount at maturity rather than gradually.

An increase in a loan balance when unpaid interest is added to the amount owed.

A measure comparing cash or income available for debt service with scheduled principal and interest payments.

A measure comparing a person's recurring debt payments with income over the same period.

The amount of eligible collateral value used to determine borrowing availability under a lending formula.

A fee for a lender's agreement to make funding available, often charged on an undrawn commitment.

A covenant restricting a borrower's ability to grant security over assets to other creditors.

A clause linking default under one debt agreement to default under another agreement.

Ranking equally with specified other claims in payment priority or legal status.

An arrangement in which a lender shares an economic interest in a loan with another institution.

A facility allowing repeated borrowing and repayment within an agreed limit during its availability period.

A loan on which normal recognition of interest income has been suspended because collection is doubtful.

Short-term lending to finance newly originated loans before they are sold or securitized.

The price of borrowing money, shown as a percentage of the amount borrowed or saved for a period, usually one year.

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.

An interest rate that can go up or down during a loan or deposit term, usually because it follows a benchmark rate.

Short for annual percentage rate: the yearly cost of a loan or credit card shown as a percentage, including interest and certain required fees.

The price of one currency in terms of another, for example how many Turkish lira you need to buy one euro.

The buying and selling of currencies, or foreign currency itself. It is often shortened to FX or forex.

Interest calculated on both the original amount and the interest already added, so the total grows faster over time than with simple interest.

The date when a loan, deposit or bond ends and the principal must be repaid, or the length of time until that date.

One hundredth of one percentage point (0.01%). It is used to describe small changes in interest rates and yields precisely.

The main interest rate set by a central bank to steer the cost of money in the economy and bring inflation towards its target.

A general rise in prices over time, which means that the same amount of money buys less than before.

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.

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.

Interest calculated only on the original amount borrowed or deposited, not on interest already earned, so it grows by the same amount each period.

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.

Of a currency or asset: to rise in value over time. The opposite is 'depreciate'.

The interest rate after taking inflation into account, roughly the nominal rate minus the inflation rate. It shows the true gain or cost of money.

A bank's interest income minus its interest expense, divided by its average interest-earning assets. It shows how profitably the bank lends and invests.

A rule for converting calendar days into the year fraction used in interest calculations.

The date on which a variable interest rate is updated using its specified reference terms.

A minimum interest rate specified in a contract, or an instrument providing protection below a rate level.

A maximum contractual interest rate, or an instrument compensating for rates above an agreed level.

A contract settling the difference between an agreed rate and a future reference rate on a notional amount.

An interest rate swap exchanging a fixed rate for a rate based on compounded overnight rates.

A multiplier used to convert a future cash amount into its value at an earlier date.

The quoted difference between a currency's forward exchange rate and its spot rate.

The proportion of a benchmark interest-rate change passed through to deposit rates over a stated period.

The component of a longer-term bond yield associated with bearing interest-rate risk over time.

A no-arbitrage relationship linking interest rates in two currencies with spot and forward exchange rates.

A financial statement showing what a company owns (assets), what it owes (liabilities) and the owners' share (equity) on a specific date.

A financial statement showing a company's revenue, costs and profit or loss over a period, such as a quarter or a year.

Something of value that a person or company owns or controls, such as cash, buildings, receivables or investments.

Money or another obligation that a company owes to others, such as loans, unpaid bills or, for a bank, its customers' deposits.

The owners' share of a company: what is left when liabilities are taken away from assets. It includes paid-in capital and retained profits.

The total income a company receives from its normal business activities, such as selling goods or services, before any costs are deducted.

What is left of a company's revenue after all costs, interest, taxes and other expenses are deducted. When it is negative, it is called a net loss.

To remove a debt or asset from the accounts because it has no value or will not be recovered, and record the amount as a loss.

Spreading the cost of a long-term physical asset, such as a machine or building, over its useful life; also a fall in the value of a currency or asset.

Short for earnings before interest, taxes, depreciation and amortization: a measure of a company's operating profit before financing costs and non-cash expenses.

Losing money or owing money: a company is in the red when it makes a loss, and an account is in the red when its balance is below zero.

Money that a business spends, or a cost it records, in order to run its activities and earn revenue, such as salaries, rent or interest.

Money a business earns after subtracting its costs from its revenue. When costs are higher than revenue, the result is a loss.

A document a company publishes each year about its activities, results, strategy, risks and management, usually including the audited financial statements.

An official, independent examination of a company's accounts, records or processes to check that they are correct and follow the rules.

Short for profit and loss: the income statement, or more loosely the profit or loss made by a business, unit, trading desk or project.

The twelve-month period a company or government uses for its accounts and budget, which may or may not match the calendar year.

Money that customers owe a company for goods or services already delivered, shown as an asset on the balance sheet.

Making a profit, or having a positive balance in an account. It is the opposite of 'in the red'.

To earn exactly enough to cover all costs, so that there is neither a profit nor a loss.

Net profit divided by shareholders' equity, shown as a percentage. It measures how much profit a company makes with the money its owners have invested.

Interest income less interest expense over a specified reporting period.

A bank efficiency measure comparing operating expenses with operating income under a stated definition.

A ratio comparing a bank's loans with its customer deposits on a consistent measurement basis.

A carrying amount adjusted for principal repayments and effective-interest amortization, with impairment where applicable.

Specified income and expense items recognized outside profit or loss under the applicable reporting standards.

Accounting treatment that reflects a qualifying hedging relationship in the recognition of gains and losses.

Removing a previously recognized asset or liability from an entity's statement of financial position.

The movement of money into and out of a business over a period. Positive cash flow means more money is coming in than going out.

Money and other financial resources used to start and run a business; for banks, the owners' funds that absorb losses and protect depositors.

The money a business has available for its daily operations, calculated as current assets minus current liabilities.

Using borrowed money to finance assets or investments, or the level of a company's debt compared with its equity or earnings.

A part of a company's profit that is paid to its shareholders, usually in cash and as an amount per share.

A debt security that a government or company sells to investors to borrow money. It pays regular interest, called a coupon, and returns the full amount at maturity.

An estimate of what a company, asset or property is worth, or the process of calculating it.

Short for mergers and acquisitions: deals in which companies combine with each other or one company buys another.

Short for initial public offering: the first time a private company sells its shares to the public on a stock exchange.

A careful investigation of a company, deal or customer before an agreement, to check the facts and find any risks or legal and financial problems.

A person or organisation that owns shares in a company and so owns part of it, with rights such as voting and receiving dividends.

To get money for a business from investors or lenders, for example by selling new shares, issuing bonds or borrowing.

To create and offer new shares, bonds or other securities to investors; also to produce an official document or card, such as a credit card or a guarantee.

A way of financing equipment, vehicles or property in which a leasing company buys the asset and a business uses it in return for regular payments.

A form of financing in which a company sells its unpaid invoices to a factoring company or bank at a discount and receives cash before its customers pay.

A legal process for a person or company that cannot pay its debts, in which a court controls how its assets are used to pay creditors.

Long-term financing for a large project, such as a power plant or motorway, in which the loan is repaid mainly from the project's own future cash flows.

Financing that packages exposures or their cash flows into securities sold to investors.

A bond giving investors claims on the issuer and preferential recourse to a designated cover pool.

Debt ranking below specified other debt in the order of repayment or loss allocation.

Financing positioned between senior debt and ordinary equity, often combining debt with equity-linked features.

A bond that can be exchanged for shares according to specified contractual terms.

A loss-absorbing bond that converts to equity or is written down when specified triggers occur.

Funds accumulated, or scheduled amounts applied, to retire debt over time under an agreement.

An agreed order for allocating available cash among expenses, debt service, reserves and distributions.

An account holding funds designated to cover debt-service payments when normal cash flows are insufficient.

An agreement among creditors governing their relative rights, priorities and enforcement arrangements.

A financing arrangement restricting a lender's recovery claims to specified assets, parties or circumstances.

A feature or arrangement designed to improve protection against credit losses for specified creditors or investors.

Providing collateral whose recognized value exceeds the obligation it supports.

A bond that the issuer may redeem before maturity under specified contractual conditions.

A bond allowing the holder to require early repayment on specified dates and terms.

The risk that a borrower or another party will not pay back money it owes on time or in full, causing a loss for the lender.

Failure to make loan or bond payments as agreed. A borrower is usually treated as in default after missing payments for a set period, often 90 days.

How easily an asset can be turned into cash without losing value, or how much cash and easily sold assets a bank or company has to meet its payments.

The amount of money a bank could lose to a particular borrower, sector, country or market if things go wrong.

A loan on which the borrower has stopped making payments, usually for 90 days or more, or which is unlikely to be repaid in full.

To reduce the risk of losing money from changes in prices, interest rates or exchange rates, usually by taking an opposite position with derivatives.

The risk of losses caused by changes in market prices, such as interest rates, exchange rates, share prices and commodity prices.

The risk of loss from failed internal processes, human error, system breakdowns or outside events such as fraud, cyberattacks or natural disasters.

An amount a bank sets aside from its profit to cover expected losses on loans that may not be repaid.

An analysis that checks whether a bank would have enough capital and liquidity to survive a severe but possible shock, such as a deep recession.

An assessment, usually by a rating agency, of how likely a company, bank or country is to repay its debt, shown with letters such as AAA or BB.

The process of identifying possible risks, estimating how likely they are and how much harm they could cause, and deciding how to manage them.

To make a risk, loss or problem less serious or less likely, without removing it completely.

The amount and type of risk an organisation is willing to accept in pursuit of its goals, usually approved by the board and expressed as limits.

The risk that the other party in a financial deal, such as a derivative, repo or FX trade, fails to pay or deliver what it owes before the deal is completed.

An estimate of the credit losses a lender expects on its loans and other financial assets, weighted by the probability of default and used to set provisions.

Risk arising when exposure to a counterparty increases as that counterparty becomes less creditworthy.

The risk that two related prices or rates used in a hedge do not move together as expected.

The risk that repayment earlier than expected changes an asset's income or value.

The risk that repayments arrive later than expected, extending the life of an investment.

The risk of excessive exposure to one borrower, sector, region or other shared factor.

The risk that restrictions prevent a borrower from converting or sending funds abroad to meet an obligation.

The difference between rate-sensitive assets and liabilities repricing within a specified time band.

A mismatch between expected cash inflows and outflows over a specified period.

The period an institution can meet its obligations under a specified liquidity stress scenario.

Starting from a failure outcome and identifying scenarios that could cause it.

The average loss in the worst part of a modeled loss distribution beyond a chosen confidence level.

An estimate of how large counterparty exposure could become over a future horizon at a specified confidence level.

A reduction applied to an asset's market value when calculating its value as collateral.

The condition of assets being pledged or otherwise restricted from freely meeting additional funding needs.

A measure of exposures adjusted for their regulatory risk treatment when calculating capital requirements.

A factor used to translate an off-balance-sheet commitment into a credit-equivalent exposure.

An adjustment to a transaction's value reflecting the counterparty's credit risk.

The difference between the present values of relevant asset and liability cash flows, including applicable off-balance-sheet positions.

Risk to a bank's earnings or economic value from interest-rate changes affecting banking-book positions.

Movement of a borrower or exposure between credit-quality grades over time.

The proportion of an exposure recovered following default, under a stated measurement basis.

The risk of adverse consequences from incorrect models or inappropriate use of their outputs.

The interval from the last collateral exchange until positions can be closed out and the resulting exposure rehedged.

Following the laws, regulations and internal rules that apply to a bank; also the name of the department that checks that this happens.

Short for know your customer: the checks a bank makes to confirm a customer's identity, address and source of funds before and during the business relationship.

Hiding the criminal origin of money by moving it through banks, businesses or transactions so that it looks legal.

Deceiving someone to get money or another advantage illegally, such as using stolen card details or opening an account with a fake identity.

Short for anti-money laundering: the laws, controls and procedures that banks use to prevent, detect and report money laundering.

A public body that makes and enforces the rules for an industry. Banking regulators license banks, set capital rules and inspect banks.

A bank's capital divided by its risk-weighted assets. It shows whether the bank has enough capital to absorb losses; Basel rules require at least 8% before extra buffers.

A confidential report that a bank must send to the national financial intelligence unit when it suspects that a transaction is linked to money laundering or terrorist financing.

A set of international banking rules agreed by the Basel Committee after the 2008 global financial crisis. It requires more and better capital and adds liquidity and leverage limits.

Restrictions imposed by governments or international bodies that ban or limit financial and trade dealings with certain countries, companies or people.

Providing or collecting money, from legal or illegal sources, knowing that it will be used to support terrorist acts or organisations.

Short for politically exposed person: someone with an important public role, such as a senior official or judge, or a close family member or associate of such a person.

The real person who ultimately owns or controls a company or account, even if it is held in someone else's name or through other companies.

The legal duty of banks and their staff to keep customers' account and transaction information confidential, except where the law requires disclosure.

A rule set by a central bank that requires banks to hold a certain share of their deposits and some other liabilities as reserves at the central bank.

The regular submission of financial and risk data by banks to regulators and central banks, in set formats and by set deadlines.

Absorbing a failing institution's losses by writing down eligible claims or converting them into equity.

A bank's plan of actions to restore its financial position during severe stress.

A plan for handling a financial institution's failure while preserving critical functions and managing wider disruption.

An additional capital buffer adjusted to address changing system-wide risks associated with the credit cycle.

A layer of capital above minimum requirements intended to absorb losses during stress.

A Basel measure comparing high-quality liquid assets with net cash outflows in a 30-day stress scenario.

A Basel measure comparing available stable funding with required stable funding over a one-year horizon.

A person who transfers or receives criminal proceeds on behalf of others, knowingly or unknowingly.

Restricting or ending customer relationships to avoid risk rather than managing individual risks.

Using a bank's app on a smartphone or tablet to check balances, make payments, transfer money and use other services.

Managing a bank account through the bank's website on a computer, including payments, transfers and statements.

Short for financial technology: technology that improves or automates financial services, and the companies that build such products.

An app or online service that stores payment cards or money so that you can pay with a phone, watch or computer.

A system in which banks, with the customer's permission, share account data or let licensed third parties start payments through secure APIs.

A form of short-term credit that lets shoppers split a purchase into a few payments, often without interest, usually offered at online checkout.

A bank that works only through a mobile app and website, without physical branches, and often offers lower fees and fast account opening.

An electronic transfer that reaches the recipient's account within seconds, at any time of day, on every day of the year.

To add money to a prepaid card, digital wallet, mobile phone or account so that its balance increases.

Short for one-time password: a code that is valid for a single login or transaction and only for a short time, usually sent by text message or created in an app.

A trick in which criminals send fake emails, messages or websites that seem to come from a bank, in order to steal passwords, card details or codes.

A way of checking identity that asks for two different kinds of proof, such as a password plus a code sent to your phone, before giving access.

A payment card that exists only in digital form, with its own number, expiry date and security code, used mainly for online and in-app payments.

The process of accepting a new customer, including collecting information, verifying identity, running checks and opening the first account or product.

A way of paying in which the payer scans a QR code with a banking or wallet app, or shows a code to be scanned, and confirms the payment on the phone.

Monetary value stored electronically, for example in a wallet app or on a prepaid card, issued in exchange for funds received and accepted as payment by others.

An arrangement in which a bank supplies banking capabilities for another company's customer-facing service.

Integrating a financial service into a product or journey whose main purpose is not financial.

Technology used by firms to support regulatory compliance and related reporting or monitoring.

Technology used by supervisory authorities to collect, analyze and act on information about supervised institutions.

A message asking a payer to initiate a payment, rather than transferring funds itself.

A check comparing a proposed recipient's name with the account details before a payment is sent.

Fraud using a fabricated identity assembled from invented information, often combined with real identity data.

A bank deposit represented as a digital token on a programmable or distributed ledger.

Digital money issued as a direct liability of a central bank.

The department of a bank or company that manages its cash, liquidity, funding, foreign exchange and interest rate risk; also the government ministry in charge of public money.

The income an investment earns, shown as a percentage of its price or value. For a bond, it is the return an investor gets by buying at the current price.

Financial assets that can be bought and sold, such as shares, bonds and bills, which give the owner rights like part ownership or a claim to repayment.

A financial contract whose value depends on the price of something else, such as a currency, interest rate, share or commodity.

An agreement to buy or sell an amount of currency or another asset on a future date at a price fixed today.

A contract in which two parties exchange cash flows or currencies for a period, such as fixed interest payments for floating ones.

Short for repurchase agreement: a deal in which one party sells securities and agrees to buy them back later at a higher price, which works like a short-term secured loan.

A bond's quoted price excluding interest accrued since the previous coupon date.

A bond price that includes accrued interest as well as its clean price.

A measure of the timing or interest-rate sensitivity of a fixed-income instrument's cash flows.

The curvature of the relationship between a bond's price and its yield.

Collateral collected to cover potential exposure from future market movements over a defined close-out period.

Collateral or settlement payments reflecting changes in the current value of trading positions.

A currency forward settled by paying a rate difference rather than exchanging the underlying currency amounts.

An internal method allocating funding costs and benefits to a bank's business lines or transactions.

A management committee overseeing the balance sheet's funding, liquidity and interest-rate profile.

Short-term debt issued by companies to finance operations, commonly on an unsecured basis.

A time draft accepted by a bank, making the bank responsible for payment at maturity.

Banking products that help importers and exporters pay and get paid safely, and that finance goods while they are produced, shipped or sold.

A bank's written promise to pay the seller in an international sale, provided that the seller presents the required documents, such as the bill of lading and invoice.

A bank's written promise to pay a set amount to a third party if its customer fails to meet an obligation, such as finishing a contract or paying a supplier.

A trade payment method in which the exporter's bank sends the shipping documents to the importer's bank, which releases them only when the importer pays or accepts a bill of exchange.

A written order from one party to another to pay a fixed amount to a named person, either on demand or on a set future date, used mainly in trade.

Purchasing export receivables without recourse for the buyer's non-payment, commonly involving medium-term obligations.

A guarantee of payment attached to a bill of exchange or similar negotiable instrument.

A bank with which a documentary credit is available for honour or negotiation under its terms.

A bank authorized to reimburse a claiming bank under an interbank arrangement for a documentary credit.

A credit expressly allowing an authorized transfer of availability to one or more second beneficiaries.

A second documentary credit issued using an existing credit as support for financing a related purchase.

An institution providing officially supported financing, guarantees or insurance for exports.

Buyer-led financing allowing suppliers to receive early payment on invoices approved by the buyer.