Banking Terms – The Bee Terms In Banking

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Here is a compilation of some Banking Terms that starts with letter B and their meaning

1. Bank Draft

A bank cheque, bank draft of teller’s cheque as it is referred to in some countries is a bank instrument that serves as a medium of exchange drawn on the account of a bank customer and guaranteed by a bank who owns the instrument as a form of payment for goods and services or settlement of debt.

SEE: Here Are 6 Reasons Why You Need A Bank Cheque.

2.Bank Statement

A bank statement is a record, typically sent to the account holder every month summarizing all the transactions in an account throughout the time from the previous statement to the current statement. The opening balance of the previous month added to the total of all transactions during the period results in the closing balance for the current statement. Investopedia.

SEE: In 10 Minute, How To Read Your Bank Statement

3.Bank Rates

Bank rate or bank interest rate is the interest rate your bank charges on approved loan/s, bank rate are competitive amongst banks which give the customer the options of which bank to do business with.

4.Bank Balance

Bank balance also called available refers to the balance in your bank account at a particular period of time. The balance can either be positive or negative balance. The negative balance could arise as a result of overdrawing your account beyond the available balance.

5.Bankruptcy

Bankruptcy is a legal status of a person or other entity that cannot repay the debts it owes to creditors. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor. Wikipedia

SEE: 9 Ways To Avoid Ruining Your Credit History

6.BOFIA

Bank and Other Financial Institution Act – It is the law that regulates banking and other financial institutions and all other matter that are connected to them in Nigerian.

7.Bank Ratings

Bank ratings refers to comparative analysis of banks often done by rating agencies. Deposit base, shareholder funds, asset base, liquidity, leverage, capital adequacy are some of the parameters for rating banks.

SEE: Fitch Ratings Affirms Profitability of Nigerian Banks

8.Bank Mandate

A written order to a bank, asking it to open an account and allow someone to sign cheques on behalf of the account holder, and giving specimen signatures and relevant information. Investorwords.com.

SEE: Don’t Be Confused About Account Mandate. Read This

9.Bank Verification Number BVN

Bank Verification Number (BVN) is a scheme introduced by the Central Bank of Nigeria (CBN) to protect customers’ transactions and enhance confidence in the Nigerian banking sector. It involves identifying an individual based on physiological or behavioral attributes, such as fingerprint, signature and others. oisservices.com

10. Bills For Collection

Bills for Collection is also a mode of payment used for the importation of visible goods to Nigeria.

A Bill for Collection is the handling of documents (financial and/or commercial) by banks in accordance with instructions received from the exporter in order to obtain payment or acceptance or deliver documents against payment and/or acceptance or deliver documents on other terms and conditions. Gtbank.com

11.Bank Branch

A branch, banking center or financial center is a retail location where a bank, credit union, or other financial institution (and by extension, brokerage firms) offers a wide array of face-to-face and automated services to its customers. Wikipedia

12.Bank Alert

A bank notification via Short Messaging Service known as SMS of debit or credit movement on an account. It is mandatory on all banks in Nigeria to ensure there is SMS alert on all account opened but it is not compulsory as the customer can instruct the bank not to put SMS alert on his account

13.Bulk Teller

A conventional consumer bank has tellers on staff that process various customer transactions. One or more of these tellers is required to handle large amounts of cash on a regular basis. A bulk teller, also known as a vault teller, has this responsibility. ebow.com

14.Bulk Room

The separate room away from the banking hall where bulk tellers sits to count depositors money. Most Nigerian bank have bulk rooms where cash depositors are directed to in other to have their money counted after which receipt are issued for such deposits.

 

15. Base rate
It is the minimum rate a bank charges its most credit-worthy customer. The bank cannot lend below this rate (with an exception to bank employees, loans to bank depositors against their own deposits, etc)
For a retail customer, the base rate will cover all loans from auto, personal to home loans effective.

16. Balance transfer
Balance transfer is an option included under credit card payments and is useful for persons holding more than one card. On availing this facility, the cardholder can transfer the balance amount outstanding on card one to card two and vice versa, if he/she is not able to make full payment that is due on a particular card.
In any case, the payment due date is only delayed but the payment has to be made at the scheduled time as stated in card two. Balance transfer facility is useful in reducing the interest outgo (on card one) and extending the payment due date on the original card.

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