Banking Terminology, Banking Awarensee for Bank PO/Clerk Exam, IBPS PO/Clerk/RRBs Exams, SSC(Staff Selection Board) Exam, Regioanal Rural Banks Exams, India Oil Corporation, Coal India Exams, ONGC Exams

Banking Terminology for Bank, IBPS PO Exams...The Term FII(Foreign Institutional Investors), FDI(Foreign Direct Investment), IPO(Initial Public Offer) Explained...

11/30/2013

This post Explain the term FII(Foreign Institutional Investors), FDI( Foreign Direct Investment) & IPO( Initial Public Offer) for banking & IBPS PO banking awareness section.

1. FII (Foreign Institutional Investor)
Foreign Institutional Investor used to denote an investor, mostly in the form of an institution. An institution established outside India, which proposes to invest in Indian market, in other words buying Indian stocks. FII's generally buy in large volumes which has an impact on the stock markets. Institutional Investors includes pension funds, mutual funds, Insurance Companies, Banks, etc.

11. FDI (Foreign Direct Investment)
FDI (Foreign Direct Investment) occurs with the purchase of the “physical assets or a significant amount of ownership (stock) of a company in another country in order to gain a measure of management control” (Or) A foreign company having a stake in an Indian Company.

12. IPO (Public Offering)
IPO is Initial Public Offering. This is the first offering of shares to the general public from a company wishes to list on the stock exchanges.

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Banking Terminology or Banking Awareness for Banking, IBPS PO & Various other exams... The Term Inflation, Deflation, Prime Interest Rates, Deposit Rates Explained...

11/30/2013

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Banking terminology for banking, IBPS PO & all other various exams. In this post we explain the four term i.e. Inflation, Deflation, Prime Interest Rate, Deposit Rate

1. Inflation
Inflation is as an increase in the price of bunch of Goods and services that projects the Indian economy. An increase in inflation figures occurs when there is an increase in the average level of prices in Goods and services. Inflation happens when there are
fewer Goods and more buyers; this will result in increase in the price of Goods, since there is more demand and less supply of the goods.

2. Deflation
Deflation is the continuous decrease in prices of goods and services. Deflation occurs when the inflation rate becomes negative (below zero) and stays there for a longer period.

3. PLR(Prime Interest Rate)
The Prime Interest Rate is the interest rate charged by banks to their most creditworthy customers (usually the most prominent and stable business customers). The rate is almost always the same amongst major banks. Adjustments to the prime rate are made by banks at the same time; although, the prime rate does not adjust on any regular basis. The Prime Rate is usually adjusted at the same time and in correlation to the adjustments of the Fed Funds Rate. Some banks use the name "Reference Rate" or "Base Lending Rate" to refer to their Prime Lending Rate.

4. Deposit Rate
Interest Rates paid by a depository institution on the cash on deposit.

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Banking Terminology or Banking Awareness for Banking, IBPS PO & Various other exams...Repo, Reverse Repo, CRR, SLR Explained

11/30/2013

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Banking terminology or Banking awareness for Banking, IBPS PO or Various other exams.

Candidates preparing for banking exams find it difficult to find out what to read for banking terminology as this is one of the sections for banking PO exams conducted by IBPS. AND yes this is scoring too, of know the answer it takes only a second to click & plus yoru score by one.

Here, we are going to explain the terms "Repo Rate, Reverse Repo Rate, CRR, SLR" following terms related to the banking industry. Just stay connected with us & we'll keep updated this section, you don't need to go anywhere else for banking terminology part.

Repo Rate, Reverse Repo Rate, CRR, SLR for banking, IBPS & various exams.

1. Repo Rate

Repo rate is the rate at which our banks borrow rupees from RBI. Whenever the banks have any shortage of funds they can borrow it from RBI. A reduction in the repo rate will help banks to get money at a cheaper rate. When the repo rate increases, borrowing from RBI becomes more expensive.
Present Repo Rate – 7.75 %

2. Reverse Repo Rate

This is exact opposite of Repo rate. Reverse Repo rate is the rate at which Reserve Bank of India (RBI) borrows money from banks. RBI uses this tool when it feels there is too much money floating in the banking system. Banks are always happy to lend money to RBI since their money is in safe hands with a good interest. An increase in Reverse repo rate can cause the banks to transfer more funds to RBI due to these attractive interest rates.
Present Reverse Repo Rate – 6.75 %

3. CRR Rate

Cash reserve Ratio (CRR) is the amount of funds that the banks have to keep with RBI. If RBI Decides to Increase the percent of this, the available amount with the banks comes down. RBI is using this method (increase of CRR rate), to drain out the excessive money from the banks.
Present CRR – 4 %

4. SLR Rate

SLR (Statutory Liquidity Ratio) is the amount a commercial bank needs to maintain in the form of cash, or gold or govt. approved securities (Bonds) before providing credit to its customers. SLR rate is determined and maintained by the RBI (Reserve Bank of India) in order to control the expansion of bank credit. SLR is determined as the percentage of total demand and percentage of time liabilities. Time Liabilities are the liabilities a commercial bank liable to pay to the customers on their anytime demand. SLR is used to control inflation and propel growth. Through SLR rate tuning the money supply in the system can be controlled efficiently.
Present SLR – 23 %

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Various Banking terms (Account, Annuity, Asset, Bail Out, Balance sheet, Bank Credit, Bank Deposit, Bank Note, Bank Rate, Bankruptcy etc) & their definition.

11/22/2013

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What is an Bank Account?

Bank Account
Refers to a running record of transactions which are taking place between two transactors, who may be in two departments of one business and a basic element in all systems of recording business transactions. In retail trading it refers to the credit facility which is automatically extended to a customer with whom an account is operated.

What is the Annuity?

Annuity- A regular annual payment of money purchased by an immediate lumpsum prepayment.

What is an Asset?

Asset- When the balance sheet of a business is drawn up, everything which it owns at the time which has a money value is listed as an asset. They may be classified as:

(1)   Current Assets – consisting of cash, stock and book debts.

(2)   Fixed Assets – consisting of buildings, plant and machinery.

(3)   Intangible Assets – being the value of goodwill, patents.

What is Bail Out?

Bail Out- To rescue a company which is in financial difficulties. Ex: The US government recently bailed out insurance company AIG.

What is a Balance Sheet?

Balance Sheet- This is an ordered statement of the economic resources or assets of a company or other business organisation, each item having a value set upon it; the financial claims of persons or organizations upon the value of these assets.

Bank Credit
Refers to the lending by the banking system, by whatever means: bank advances, discounting bills or purchasing securities.

Bank Deposits
The funds deposited in bank accounts. In reality they are simply records of indebtedness of a bank to the depositor and they arise from the character of banks as financial intermediaries.

Bank Note
A note issued by a bank for a sum of money which it promises to pay the bearer on demand.

Bank Rate
Bank Rate is the rate of discount at which the central bank of the country discounts first class bills. It is the rate of interest at which the central banks lends money to the commercial banks. Bank rate is a direct quantitative method of credit control in the economy.

Bankruptcy
A legal proceeding under which the property of an insolvent debtor is taken for the benefit of his creditors generally.

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Banking Terminology for Bank, IBPS PO Exams...The Term FII(Foreign Institutional Investors), FDI(Foreign Direct Investment), IPO(Initial Public Offer) Explained...

Banking Terminology or Banking Awareness for Banking, IBPS PO & Various other exams... The Term Inflation, Deflation, Prime Interest Rates, Deposit Rates Explained...

Banking Terminology or Banking Awareness for Banking, IBPS PO & Various other exams...Repo, Reverse Repo, CRR, SLR Explained

Various Banking terms (Account, Annuity, Asset, Bail Out, Balance sheet, Bank Credit, Bank Deposit, Bank Note, Bank Rate, Bankruptcy etc) & their definition.

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