Banking Terminologies

Accretion

Accretion, is a process, where increments and periodic increases are made in the book value or the balance sheet value of an asset. In the field of banking and finance, accretion is the process where the price of a bond that has been bought at a discount is changed to the par value of the bond. It is also defined as a change in the price of a bond that has been bought at a discount to the par value of the bond.

Actuary

Insurance company official, responsible for estimating future claims and disbursement and for calculating necessary fund and premium levels.

Advising Bank

A Bank usually located in the country of residence of an Exporter, used by an Importer’s bank to authenticate a Letter of Credit before it is passed on to the Exporter

Accumulator

Accumulator is also known as capital appreciation bond. The accumulator is a type of security that is related to capital and is issued on face value, but the interest is not paid to the investor on the basis of the time period. Instead, the total amount of accrued interest is paid along with the face value upon the maturity of the security.

Acceptance

Acceptance which is also known as the banker's acceptance is a signed instrument of acknowledgement that indicates the approval and acceptance of all terms and conditions of any agreement on behalf of the banker. It is a very wide term that is used in context with financial agreements and contracts.

Accepting Party

The party (either an individual or a group of individuals or organizations) that accept the terms and conditions of a proposed agreement or contract put forth by another party.

Account Aggregation

An online facility that is made available by some banks or financial organizations, in which all the transactions related to the bank account, credit facilities, debts and investments can be handled and operated with the help of a single interface or account. Account aggregation is a form of Internet banking, provided for ease of transaction.

Affidavit

A written statement, sworn to be true by the person signing it, before someone authorized by court of law.