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Unit 1. Banks and banking > Module 1 Glossary - Banks and banking > Flashcards

Module 1 Glossary - Banks and banking Flashcards

1
Q

Asset

A

A resource that has value, or which can be sold for money

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2
Q

Building society

A

Mutual business that mainly provides loans for house purchases

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3
Q

Buffer

A

A pot of money set aside by a bank from its capital and held in reserve to absorb bad debts

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4
Q

Business banking

A

Providing financial services to small and medium sized enterprises

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5
Q

Capital

A

A banks own funds which are available to meet losses

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6
Q

Challenger bank

A

A retail bank that has been recently formed or is relatively new in the retail banking sector

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7
Q

Chatbot

A

A computer programme that simulates conversation with human users

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8
Q

Cheque

A

A form of written instructions to a bank to make a payment from a drawer to a payee

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9
Q

Cloud computing

A

The delivery of computing services (such as storage, software, networks) over the internet

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10
Q

Commercial bank

A

A bank that serves personal, business and corporate customers

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11
Q

Conversational user interface

A

A facility that allows a customer/ user to have a conversation with a computer system

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12
Q

Co-operative bank

A

Bank that are owned by members and which provide deposit-taking and loan products to personal customers and small businesses

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13
Q

Corporate banking

A

Banking services provided to large companies

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14
Q

Credit

A

An arrangement allowing a purchaser to pay for goods and services at a later date

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15
Q

Credit union

A

Non-profit co-operative organisations owned by members who pool savings and lend to each other

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16
Q

Creditor

A

A person/organisation that is owned money by a third party

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17
Q

Cryptocurrency

A

A currently that only exists in the digital realm, and is created and managed through blockchain technology

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18
Q

Current account

A

A bank that allows deposits and withdrawals without notice

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19
Q

Cybercrime

A

Crime committed on a computer or over a computer or internet network

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20
Q

Debtor

A

A person/ organisation who owes money to a third party

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21
Q

Deposit

A

An amount of money paid into a bank or other financial account

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22
Q

Digital only bank

A

A bank that has no physical branches and delivers banking services via digital banking

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23
Q

Digital technology

A

Electronic tools, services and systems that can generate, create, store or process data.

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24
Q

Digital wallet

A

A secure finance application on a digital device that stores money and can make payments (also e-wallet)

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25
Q

Disintermediation

A

The process in which parties transacting in financial products deal directly with each other instead of using a bank or other third party as an intermediary.

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26
Q

E-commerce

A

‘Electronic’ commerce, involving trading of money, goods, or services on the internet.

27
Q

Equity market

A

A trading platform/ market for the buying and selling of shares

28
Q

Finance house

A

A corporate entity that provides instalment credit to individuals and businesses.

29
Q

Financial intermediation

A

The process by which money deposited in a bank is lent by the bank to those who want to borrow money.

30
Q

Fintech

A

A term combining finance and technology. Also referred to digital finance.

31
Q

Fractional reserve banking

A

The process in which banks lend out a certain proportion of the deposits that they hold.

32
Q

Foreign currency market

A

A regulated global exchange market that determines the exchange rate of foreign currencies.

33
Q

High net worth individual

A

People who earn a large income or have significant assets.

34
Q

Intermediary

A

A person/party who acts to fail at arrangements between people or parties who cannot deal directly with each other.

35
Q

Interest

A

The price paid for borrowing money. It is expressed as a percentage rate over a period of time.

36
Q

Insurance

A

A financial product that is sold to provide protection against loss, damage or theft.

37
Q

International banking

A

Services that are provided across national borders and engage in activities that use different currencies

38
Q

Investment banking

A

The provision of financial services to large corporates, pension funds and governments

39
Q

Islamic banking

A

Services that do not charge or pay interest in compliance with Islamic sharia law

40
Q

Liabilities

A

A company’s/person debts or obligations

41
Q

Liquidity

A

The ability to turn an asset into cash or near-cash l, quickly and easily without significant loss of value

42
Q

Loans

A

An agreement that allows a person or entity to borrow a sum of money which will be paid back typically in instalments usually with interest

43
Q

Machine learning

A

A computer programme that is able to learn from data, to help it identify patterns or make decisions

44
Q

Merchant payments

A

A payment service offers by a service provider that allows customers to process payments for good or services through a merchant.

45
Q

Micro business

A

Very small business
Turnover of £632,00 or less
10 employees or less
Have less than £316,000 on balance sheet

46
Q

Money supply

A

The total of all the currency and other liquid assets in a country’s economy at any point in time

47
Q

Mortgage

A

A long term loan used to finance the purchase of a house or property

48
Q

P2P lending

A

Peer to peer lending (social)
Lending directly to each other through an online platform

49
Q

Pensions

A

Income paid to someone who no longer works because of their age or for health reason

50
Q

Philanthropy

A

Donations or actions that are intended to benefit broader society

51
Q

Portfolio

A

A collection of assets, investments or holdings

52
Q

Private banking

A

Services provided to wealthy customers or high net worth individuals

53
Q

Private sector

A

Not under direct state control

54
Q

Profit margin

A

The difference between the cost of producing and selling an item or service, and the price the item or service is sold for

55
Q

Public listing (publicly listed)

A

A company that had shares which are traded (listed) on the stock market

56
Q

Screening

A

Identifying potential risk characteristics

57
Q

SMEs (small and medium sized enterprises)

A

relatively small business, any organisation fewer than 250 employees

58
Q

Social lending

A

Lenders and borrowers dealing directly with each other, without going through a bank or other financial intermediary

59
Q

Stakeholder

A

Have an interest in an entity

60
Q

Subsidiaries

A

Company that is controlled by another company (known as ‘parent’ or ‘holding’ company)

61
Q

Unicorn

A

Technology company valued at more than $1 billion

62
Q

Wearable

A

Digitally connected devices that are worn on your body (e.g. Apple Watch)

63
Q

Bank

A

Authorised or licensed by a government or regulatory body to engage in banking activities (making loans, accepting deposits, clear cheques)

Unit 1. Banks and banking (9 decks)

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