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Banking

The business of a banker, banking involves an establishment for the loaning, holding, exchanging, or issuing of money. Also deals with the transmission of funds and the extensions of credit.

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Contributors in Banking

Banking > General banking

banker's acceptance (BA)

Banking; General banking

A short-term financial instrument that is the unconditional obligation of the accepting bank. Banker’s acceptances, or BAs, arise from transactions involving the import, export, ...

bilateral netting

Banking; General banking

A legally enforceable arrangement between two parties to two or more swaps that creates a single legal obligation covering all of the individual swap contracts. This means that ...

credit options

Banking; General banking

A type of credit derivative instrument. Options on a credit spread take the form of credit-spread put options. The put-buyer pays an upfront fee to the put-seller in exchange for ...

credit risk

Banking; General banking

The risk to earnings or capital from the potential that a borrower or counterparty will fail to perform on an obligation. Usually, but not always, the obligation in question is a ...

derivatives

Banking; General banking

(1) Financial instruments whose value depends upon the values of underlying assets, interest rates, currency exchange rates, or indexes. Various authorities define derivative ...

discount rate

Banking; General banking

(1) The percentage rate applied to the redemption value of a security in order to calculate a reduced value for a purchaser. Some (or all in the case of zero coupon securities) of ...

covered calls

Banking; General banking

A call option for which the owner of a security grants the buyer of the call option the right to purchase a security owned by the option seller. The opposite of naked calls. In ...