Top Banking and Finance Definitions


Search for definitions, and clear and simple explanations to Banking and Finance terms.  Use the simple search box on the right to get a concise definition written by our small team of expert Investment banking professionals.

Latest updated Banking definitions

Loan Definition

A Loan is a written agreement by which cash or property is transferred from its owner to a borrower for a specified period with interest. Usually the lending party is [...]

Process Methodology Definition

A documented approach for performing processes and activities in a coherent, consistent, accountable, and repeatable manner across the enterprise. We have thousands of other terms listed on and are [...]

External Communication Definition

Ability to effectively communicate to and receive feedback from clients, vendors or other 3rd party clients about the fulfilment of transactions, service requests, and any related processes (i.e. mail services, [...]

Float Management Definition

Float management is designed to minimize the incoming float or cash time and to maximize the outgoing float time. This is a method to manage and generate spread For more [...]

Bug Definition

A programming error that compromises security (a vulnerability) or to be unstable. Another great day at work and I am feeling fantastic – even if a little burned! Tomorrow I’ll [...]

Delivery Mgmt. Definition

The processes, technology, and organizations used to retrieve, route, and present unstructured data to the appropriate user at the required stage of a process dependent upon said data. Come back [...]

CCP (Central CounterParty Clearing)

Central Counterpart Clearing is becoming a requirement in the US, Canada and Internationally, due in part to the Dodd Frank regulations. A CCP clears and settles market transactions, including OTC [...]

Third-party relationship Definition

A long-term, results-oriented relationship with an external service provider for all or portions of non-core activities previously handled internally within the company. More on banking definitions tomorrow, so please come [...]

Investment Bank Definition

An Investment Bank is a type of bank that does a variety of financial functions like trading securities by acting as a broker and facilitating reorganizations of businesses by mergers [...]

Capital Definition

The money that is invested by an individual is known as Capital. For example the amount invested to build a business or amount used to buy a share of any [...]

Reinsurance Definition

The sharing of risk amongst insurance companies. Within the context of a bank this component deals with the use of reinsurance services and not the provision of these services. Another [...]

GDP (Gross Domestic Product) Definition

GDP, Gross Domestic Product, is an indicator of the economic health of a country and measures all goods that were produced by a country in a specific financial period. Usually [...]

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