Categories

Banking

Browse Banking terms for finance professionals.

Languages

ArabicDeutschEnglishEspanolFrancaisHindiBahasa IndonesiaItalianoJapanesePortuguesRusskiyThaiTurkceVietnameseZhongwen

Activo No Rentable

A loan or advance for which the principal or interest payment has remained overdue for a specified period (typically 90 days), classified under regulatory norms as impaired or at risk of default.

View term

Activos Ponderados por Riesgo

Assets adjusted by a risk weight factor, as prescribed by Basel regulations, to determine the minimum amount of capital that must be held by banks.

View term

Ajuste de Valoración de Crédito

A regulatory adjustment to the fair value of derivative instruments to account for counterparty credit risk, as mandated by Basel III. CVA reflects the market value of counterparty default risk on over-the-counter derivatives.

View term

Beneficiario

The person or entity to whom a payment, such as a check, transfer, or remittance, is made or owed according to the instructions of a financial instrument or contract.

View term

Capital adicional de nivel 1

A regulatory capital component under Basel III, referring to Tier 1 capital instruments that are not Common Equity Tier 1 (CET1) but still qualify to absorb losses while a bank remains a going concern.

View term

Capital de Nivel Adicional

A class of regulatory capital, recognized under Basel III and IV, that consists of instruments and reserves other than common equity, including certain subordinated debt and hybrid securities, used to absorb losses and support a bank’s resilience beyond Common Equity Tier 1.

View term

Capital de nivel uno

The core capital of a bank, consisting of common equity and disclosed reserves, used to absorb losses without ceasing operations.

View term

Capital ordinario de nivel 1

The highest quality component of Tier One Capital, consisting primarily of common shares and retained earnings, per Basel III.

View term

Capital por riesgo de mercado

Capital that financial institutions must hold to cover potential losses arising from market risk, such as changes in interest rates, FX rates, or equity prices.

View term

Capital por riesgo operativo

Capital that banks are required to hold to cover losses from operational risk events, including process failures, fraud, or system breakdowns, as defined under Basel standards.

View term

Carta de Crédito

A formal document issued by a bank guaranteeing payment to a beneficiary on behalf of the applicant, provided that specific terms and conditions are met, widely used in international trade.

View term

Certificado de Depósito

A time deposit issued by a bank with a fixed maturity date and specified interest rate; early withdrawal typically incurs a penalty. Used for capital preservation and interest income.

View term

Cheque Certificado

A check guaranteed by the issuing bank, which verifies that sufficient funds exist and sets aside the amount for payment, ensuring payment to the recipient.

View term

Coeficiente de Capital Total

The ratio of a bank's total capital (Tier 1 and Tier 2) to its risk-weighted assets, as defined under Basel III and CRR/CRD, used to assess capital adequacy and regulatory compliance.

View term

Coeficiente de cobertura de liquidez

A regulatory metric under Basel III requiring banks to hold sufficient high-quality liquid assets to cover total net cash outflows over a 30-day stress scenario.

View term

Colchón Contracíclico

A variable capital buffer required by regulators during periods of credit growth to protect the banking sector from system-wide risks, as outlined in Basel III.

View term

Colchón de Conservación de Capital

A capital buffer above the minimum requirement, mandated by Basel III, to ensure banks can absorb losses during periods of financial and economic stress.

View term

Colchón de Riesgo Sistémico

A supplementary capital requirement imposed by regulators on institutions or exposures posing systemic risks to the financial system, as defined under CRD IV and Basel III.

View term

Compensación de Contraparte Central

A mechanism whereby a central counterparty (CCP) interposes itself between trading parties in derivatives and securities markets, guaranteeing the terms of a trade and reducing counterparty risk.

View term

Conozca a su cliente

The process of verifying the identity of clients and assessing their suitability, risks, and background to comply with anti-money laundering and counter-terrorism financing regulations.

View term

Contrato Financiero Calificado

A legally recognized financial agreement, such as a derivatives, repo, or securities lending contract, that is granted special protections under insolvency and resolution regimes (e.g., Dodd-Frank, ISDA protocols).

View term

Cuenta conjunta

A bank or investment account held by two or more individuals with equal rights to deposit, withdraw, and manage funds. Each holder is jointly liable for account activities and obligations as per banking regulation and contract.

View term

Cuenta de depósito a la vista

A deposit account from which funds may be withdrawn at any time without advance notice, primarily used for checking accounts under banking regulations.

View term

Cuenta de Depósito en Garantía

A legal arrangement where a third party holds assets, funds, or documents on behalf of transacting parties until all contractual conditions are fulfilled.

View term

Cuenta del mercado monetario

A type of deposit account that typically pays higher interest and offers limited check-writing privileges, subject to regulatory transaction limits and money market fund investment rules.

View term

Cuenta Dematerializada

A dematerialized account used to hold securities such as shares and bonds in electronic format, enabling seamless trading and settlement, primarily in regulated markets.

View term

Cuenta NOW

A type of interest-bearing bank account allowing the account holder to write checks against deposited funds, commonly found in the US under regulatory exception.

View term

Cuenta Sweep

A bank account that automatically transfers (sweeps) amounts above or below a certain threshold into a higher interest-bearing investment or to cover shortfalls, optimizing liquidity and returns for account holders.

View term

Cumplimiento de Basilea IV

The act of meeting all regulatory requirements set out under Basel IV, covering risk-weighted assets, capital adequacy, and disclosure standards.

View term

Debida diligencia del cliente

A regulatory requirement obligating banks and financial institutions to verify the identity and assess the risk of customers as part of AML/CFT controls.

View term

Depósito a la Vista

A bank account from which funds may be withdrawn at any time without notice, typically used for day-to-day liquidity management and accessible via checks, debit, or electronic transfer.

View term

Depósito a la Vista

A bank deposit account that is repayable on demand without advance notice, typically used for liquidity management in corporate or interbank operations, and earns interest at a variable rate.

View term

Depósito a plazo

A deposit in a bank or financial institution that has a fixed term and typically offers a higher interest rate, with withdrawals only allowed at maturity or with penalty.

View term

Descubierto Bancario

A credit facility that allows a bank account holder to withdraw more money than the current account balance, creating a temporary negative balance within pre-approved limits.

View term

Dinero Ocioso

Funds held in cash or low-yield accounts that are not actively invested or used for operational purposes, resulting in opportunity cost and reduced returns for individuals or institutions.

View term

Divulgación del pilar tres

Regulatory disclosure requirements under Pillar 3 of the Basel framework, mandating banks to publish information on their capital structure, risk exposures, and risk assessment processes to promote market discipline.

View term

Enfoque Basado en Calificaciones Internas

A methodology under Basel II/III allowing banks to use their own risk assessment systems to calculate capital requirements for credit risk, subject to supervisory approval.

View term

Escenario de prueba de estrés

A hypothetical adverse event or set of conditions used to assess the resilience of a bank’s capital, liquidity, or risk profile under severe but plausible scenarios.

View term

Estrés de riesgo de liquidez

A situation or scenario in which a bank faces significant cash outflows or restricted market funding, testing its ability to meet short-term obligations.

View term

Evaluación interna de capital

The process by which a bank evaluates the adequacy of its capital relative to its risk profile, business model, and regulatory requirements (ICAAP).

View term

Exceso de límite

A status indicating a credit or loan account has exceeded its approved credit limit, potentially incurring fees and regulatory action according to card or credit agreements.

View term

Exposición al riesgo de crédito

The total potential loss a bank or financial institution faces from counterparty default on loans, credit facilities, or other exposures.

View term

Exposición en el Momento del Incumplimiento

The total value a bank is exposed to when a borrower defaults, representing the outstanding amount at the moment of default under regulatory capital calculations.

View term

Financiación estable neta

A Basel III standard that measures the amount of stable funding a bank has relative to its liquidity profile over a one-year time horizon.

View term

Fondo de inversión

A regulated investment vehicle pooling funds from multiple investors to purchase a diversified portfolio of securities managed by a professional asset manager.

View term

Fondo del Mercado Monetario

A mutual fund that invests in short-term, high-liquidity, low-risk money market instruments such as Treasury bills, commercial paper, and certificates of deposit. Used for cash management by institutions and individuals.

View term

Formato de mensaje SWIFT

A standardized structure for financial messages exchanged over the SWIFT network, defined by SWIFT and used for global payments, securities, and trade finance transactions.

View term

Gravamen

A legal right or claim by a creditor over an asset of a debtor as collateral to secure a debt or obligation, enforceable until the obligation is satisfied.

View term

Guía del pilar dos

Supervisory recommendations and expectations provided to banks regarding internal risk management and capital assessment under Pillar 2 of the Basel framework.

View term

Implementación de Basilea III

The process by which banks and regulators apply the risk-based capital, liquidity, and leverage standards outlined in the Basel III framework.

View term

Información Negativa

Negative data on a borrower's credit report such as late payments, defaults, or bankruptcies, which adversely affect credit assessment and lending decisions.

View term

Librado

The financial institution or party upon whom a check, draft, or bill of exchange is drawn and which is ordered to pay the specified sum to the payee.

View term

Librador

The person or entity that writes and signs a check or bill of exchange, instructing the drawee to pay a specified sum to the payee.

View term

Liquidación total

The complete repayment of an outstanding loan balance, including principal, interest, and any accrued charges, thereby closing the loan obligation as per contract.

View term

Lista de control de sanciones

A list of individuals, entities, or countries subject to financial and economic sanctions, used by financial institutions to screen transactions for compliance with international and domestic regulations.

View term

Llamada de Margen de Variación

A demand by a clearinghouse or counterparty for additional collateral to cover current exposures resulting from changes in the market value of derivatives positions. Required under regulatory margining rules to mitigate credit risk.

View term

Línea de Crédito

A revolving credit facility offered by a financial institution that allows a borrower to draw funds up to a specified limit at any time, repaying and reborrowing as needed.

View term

Marco de Grandes Exposiciones

A regulatory system establishing limits on banks’ exposures to individual counterparties or groups, designed to prevent concentration risk as per Basel and EBA guidelines.

View term

Mensajería ISO 8583

A standardized electronic message format for financial transaction card originated messages, used primarily in card payment systems and ATMs globally.

View term

Migración a ISO 20022

The global transition of payment, securities, and trade messages from legacy SWIFT formats (MT) to ISO 20022 XML-based messaging, aiming to improve interoperability and data richness.

View term

Número de cuenta permanente

A unique, permanent, alphanumeric identifier issued by the national tax authority to individuals or entities for tax reporting and regulatory compliance, especially in India (PAN).

View term

Orden de no pago

An instruction by an account holder to a bank to refuse payment on a specific check or transaction before it has been processed, subject to banking terms and fees.

View term

Orden de no pago

A formal, legal instruction from an account holder to their financial institution to halt payment on a specific check or transaction before it is processed.

View term

Pagador

The person or entity that issues or makes a payment, typically by check, transfer, or direct debit, according to contractual or banking instructions.

View term

Participante de la red SWIFT

A financial institution or corporate entity that is registered and authorized to send and receive financial messages over the SWIFT network, in accordance with SWIFT’s standards and regulations.

View term

Partida vencida

An item, such as a loan payment or bill, that has not been paid by its due date and is classified as overdue per banking regulations and credit reporting standards.

View term

Persona políticamente expuesta

An individual entrusted with prominent public functions, whose position exposes them to a higher risk of involvement in bribery or corruption, as defined in FATF and Wolfsberg guidance.

View term

PIN

A numeric or alphanumeric code used to authenticate the holder of a payment card, ATM card, or secure banking access, mandated by EMV and PCI DSS standards.

View term

Plataforma de Ejecución de Swaps

A trading platform regulated under Dodd-Frank and CFTC rules where multiple participants can execute and trade swaps in a transparent and standardized manner.

View term

Prevención del lavado de dinero

A set of laws, regulations, and procedures designed to prevent criminals from disguising illegally obtained funds as legitimate income, as defined by FATF and national authorities.

View term

Probabilidad de Incumplimiento

The likelihood that a borrower will default on its financial obligations within a specified time horizon, used in credit risk modeling under Basel frameworks.

View term

Proceso de revisión supervisora

A regulatory procedure (Pillar 2 of Basel framework) in which supervisors evaluate a bank’s internal capital adequacy assessment and risk management processes.

View term

Prueba de estrés inversa

A risk management technique where banks identify scenarios that could cause business failure, working backwards to pinpoint vulnerabilities and test resilience.

View term

Préstamo de Día de Pago

A short-term, high-interest unsecured loan designed to cover the borrower's expenses until the next payday; subject to specific regulatory controls due to consumer risk.

View term

Préstamo Hipotecario

A long-term loan secured by real estate property, repaid in installments, and subject to specific interest rates and collateral requirements as defined in banking regulations.

View term

Puntaje de Crédito

A numerical rating derived from a borrower’s credit history, used by lenders to assess creditworthiness and risk in granting loans or credit products.

View term

Pérdida Dada la Incumplimiento

The share of an asset that is lost by a lender when a borrower defaults, expressed as a percentage of exposure at default, used in credit risk calculations.

View term

Quasi Dinero

Highly liquid financial assets that are not cash but can be easily converted to cash within a short period, such as treasury bills, certificates of deposit, or money market instruments.

View term

Relación Deuda-Ingreso

A personal finance measure that compares an individual's total monthly debt payments to their gross monthly income, used by lenders to assess repayment capacity and credit risk.

View term

Requisito de Margen Inicial

The minimum amount of collateral required to open a position in a derivatives contract, set by clearinghouses or regulators to cover potential future exposures from market movements.

View term

Requisito de Ratio de Apalancamiento

A regulatory standard requiring banks to maintain a minimum ratio of Tier 1 capital to total leverage exposure, irrespective of risk weighting, under Basel III.

View term

Requisito mínimo de capital

The lowest amount of capital a bank is required to hold by regulators to cover its risks and protect depositors, as specified by Basel III/IV and national regulations.

View term

Riesgo de crédito de contraparte

The risk that the counterparty to a financial contract will default before the final settlement of the transaction’s cash flows.

View term

Riesgo de Tipo de Interés

The risk that changes in market interest rates will adversely affect a bank’s earnings or the economic value of its assets and liabilities. It is a core element of bank risk management under Basel and regulatory frameworks.

View term

Saldo Mínimo

The minimum amount of money required to be maintained in a bank account to avoid fees or maintain account privileges, as specified in the account terms.

View term

Seguro

A risk management contract where an insurer indemnifies another party against specified loss or damage in exchange for a premium, subject to regulatory oversight.

View term

Supervisión del sistema de pagos

The supervisory function by which central banks and regulators monitor, assess, and enforce safety, efficiency, and reliability in payment systems as per global regulatory standards.

View term

Tarjeta de Crédito

A payment card issued by a financial institution that enables the holder to borrow funds within a credit limit to make purchases or withdraw cash, subject to repayment with interest as per contractual terms.

View term

Tarjeta de débito

A payment card linked directly to a checking or savings account, enabling electronic access to funds for purchases or cash withdrawals, governed by network and regulatory standards.

View term

Tasa preferencial

The benchmark interest rate that commercial banks charge their most creditworthy corporate customers, influencing rates for loans, mortgages, and other financial products as set by central bank policy or major banks.

View term

Transferencia Programada

An electronic banking instruction set by the account holder to move funds automatically between accounts on predetermined dates or recurring intervals, commonly used for payments and savings.

View term