Glossary
A
| Arranged overdraft | The account provider and the customer agree in advance that the customer may borrow money when there is no money left in the account. The agreement determines a maximum amount that can be borrowed, and whether fees and interest will be charged to the customer. |
| ATM (Automated Teller Machine) | An electronic device that performs many banking services, which can include withdrawals and balance inquiries. |
| Authorisation code (ATC) | an ATC is an authorisation code that the customer needs to set up in the mobile banking app, which can then be used for issuing orders and other legally binding declarations of intent towards the bank within the framework of online banking. |
B
| Balance sheet | a financial statement showing a firm's or individual's assets, liabilities and capital. |
| Bankrupcy | the formal recognition of an inability to pay debts or other obligations that have fallen due. |
| Beneficial owner | denotes the person who obtains the benefit or profit of a particular entity rather than the nominee of trustee who may be the legal owner. |
| Biometric data | When using bank's online banking apps on mobile devices (smartphone or tablet) - depending on the technical capacity of the mobile device - the customer can choose to use biometric data (such as fingerprints or FaceID) instead of the PIN and/or ATC. In this case, the customer's verification by means of his biometric data replaces entry of the PIN and the ATC. |
C
| Capital | 1. The sum of money paid into company by its shareholders; 2. The net assets of a person or firm. |
| Central Bank | a bank created by a government and given the privilege of issuing money. |
| Collectively (also Jointly) | with regard to signature authority, the requirement of more than one person's signature to effect transactions. |
| Credit | 1. on a bank statement, an entry that is to your favour (as opposed to a debit, which is to the banker's favour). 2. borrowed money. |
| Creditor | a person who loans money. A person who is due money from another. |
| Current account (BrE) or Checking account (AmE) | a bank account allowing to depositor to withdraw any or all of the funds at any time. One that you use regularly for making payments, etc. |
| Cyber Threat Management | processes and technologies designed specifically to protect the bank against cyber attacks such as denial of service, external fraud and data theft. |
D
| Data Confidentiality | processes and technologies designed to protect data against unauthorized or inappropriate disclosure. In addition to client data, banks take measures to protect sensitive data such as intellectual property, unpublished financial information and personal data. |
| Data Privacy | processes and technologies to meet legal, regulatory and contractual obligations with respect to the protection of personal data which may include the protection of client and/or employee data. |
| Debit | on a bank statement, an entry that is to the bank’s favour (as opposed to a credit, which is to the customer’s favour). |
| Debit card transaction | Any purchase or bill payment using your debit card. A debit card transaction may be either an everyday (not recurring) purchase transaction or a recurring payment, such as a monthly bill. |
| Debtor | a person who borrows money. A person who owes money to another. |
| Deposit account (BrE) or Savings account (AmE) | a bank account on which interest is paid and withdrawal rights are limited. One where you leave money for longer periods of time, and which pays you a higher rate of interest than a current account. |
| Direct debit | The customer permits someone else (recipient) to instruct the account provider to transfer money from the customer's account to that recipient. The account provider then transfers money to the recipient on a date or dates agreed by the customer and the recipient. The amount may vary. |
| Direct investment | an operation where a person or company which is not resident in a country makes an investment or creates a subsidiary in that country under terms fixed by the exchange control regulations. The investment would usually be required to be financed with external funds either completely or substantially. |
| Dividend | profits earned by a company and divided among owners or shareholders. |
E
| Earned income | for tax purposes, income from wages, salary or self-employment. |
| EEA countries | EU member states plus Iceland, Liechtenstein, and Norway. |
| EU member states | Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden. |
F
| Floating rate | currency exchange rate which is left free to “float” up or down in response to supply and demand. This does not exclude the possibility of the Central Bank intervening to buy or sell on the market in order to move the rate up or down. |
I
| Income | withdrawals from capital, usually in the amounts of interest and dividends received. |
| IT Security | processes and technologies designed to protect the confidentiality, integrity and availability of information that is processed electronically. |
L
| Laundering | a process whereby money obtained illegally is recycled through a legitimate business enterprise in order for it to be available for legitimate investment. The term appears to have derived from the 1930s when the American Mafia bought laundries on a large scale because they were cash businesses through which money could be recycled. |
| Lease | a contract by which a lessor, usually in consideration of rent, conveys land, building, office space, equipment, etc. to lessee for a specific time. |
| Lessee | tenant, user of property. |
| Lessor | owner, giver of the lease. |
| Liability | a financial obligation, actual or potential. |
M
| MasterCard SecureCode | a service which allows you to secure your MasterCard bank card with a personal password which you enter when making purchases over the Internet to be protected against fraudulent use of your card online. |
P
| Personal Identification Number (PIN) | The PIN must be used when logging into online banking. |
| Power of attorney | the authority the owner of an account gives to another person to transact business for the account. |
S
| Secured loan | a loan for which collateral is pledged. |
| Share capital | capital provided by shareholders. |
| Standing order | The account provider makes regular transfers, on the instruction of the customer, of a fixed amount of money from the customer's account to another account. |
T
| Transaction Number (TAN) | TAN is an authentication code generated in a specific individual case, which must be used when logging into online banking (in addition to the user code and PIN) and for issuing orders and other legally binding declarations of intent towards the Bank within the framework of online banking. |
U
| Unarranged overdraft | The customer borrows money when there is no money left in the account (or when the customer has gone past the arranged overdraft limit) and this has not been agreed with the account provider in advance. |
| Unearned income | for tax purposes, interests, dividends, rents and royalties. |
V
| Value date | the date on which payment is considered to have been made. |
W
| Wealth | a person’s net assets. |