What Does Debit Card Mean?

An electronic card issued by a bank which allows bank clients access to their account to withdraw cash or pay for goods and services. This removes the need for bank clients to go to the bank to remove cash from their account as they can now just go to an ATM or pay electronically at merchant locations. This type of card, as a form of payment, also removes the need for checks as the debit card immediately transfers money from the client's account to the business account.

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What Does Dear Money Mean?

A situation in which money or loans are very difficult to obtain in a given country. If you do have the opportunity to secure a loan, then interest rates are usually extremely high. Also known as "tight money".

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What Does Dealer Financing Mean?

Loans that are originated by a retailer to its customers and are then sold to a bank or other third-party financial institution. The bank purchases these loans at a discount and then collects principle and interest payments from the borrower. Also called an indirect loan.

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What Does It Mean? What Does Daylight Overdraft Mean?

Occurs when a clearinghouse bank issues a payment during the day that is in excess of the originator's reserve account balance. Daylight overdrafts must be covered by the end of the business day.

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What Does Day Rate Mean?

The price/cost of a particular service for a day's period. In some markets it is referred to as "per diem" (cost that an organization will pay for one days' work) and often translates to a 7.5 hour work day. Some purchasing organizations prefer a quoted day rate instead of an hourly rate for services.

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What Does Day Cycle Mean?

The time period alloted for the delivery of Automated Clearing House debits and credits from an originator to its processor. Typical hours are between 8:00am and 1:00pm eastern standard time (EST).

Also referred to as daytime window.

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What Does Daily Factor Mean?

A decimal representing the portion of an annual yield earned in one day. Daily factors are often reported alongside current annualized yield figures, and can be translated back to the current yield by multiplying the number by 365.

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What Does Startup Capital Mean?

Startup capital refers to the money that is required to start a new business, whether for office space, permits, licenses, inventory, product development and manufacturing, marketing or any other expense.

Startup capital is also referred to as "seed money."

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What Does Statement Stuffer Mean?

A type of sales brochure included in a customer's account statement. Most statement stuffers include some sort of short application and information about other financial services that the customer can obtain. Statement stuffers provide a convenient and cheap form of marketing additional products and services to financial customers.

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What Does Sterling Overnight Interbank Average Rate - SONIA Mean?

An index that the tracks Sterling overnight funding rates for trades that occur in off hours. The Sterling overnight funding rate is a reflection of the depth of the overnight business in the market.

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What Does Stockholm Interbank Offered Rate - STIBOR Mean?

The official interbank offer rate for short term loans in Sweden. The Stockholm Interbank Offer Rate is determined by the Riksbank, Sweden's central bank, and is often used for one or three month terms. STIBOR is the interest rate banks are charged when borrowing from other banks for maturities longer than overnight.

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What Does Stop Payment Mean?

When a bank account holder instructs his or her financial institution not to honor payment.
Stop payments are issued after a check has been delivered, but before the receiving party has cashed it.

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What Does Straight Credit Mean?

A special type of letter of credit. Straight credits must be presented either on or before their date of expiration at the paying bank. They can only be used to pay their specified beneficiary.

They are also known as "good faith loans."

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What Does Stretch Loan Mean?

A loan that is extended to another party, either an individual or subsidiary company, that requires a large proportion of the party's cash flows to service the loan on a monthly basis. Usually, this benchmark is 50% of the party's gross income or more.

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What Does Structural Adjustment Mean?

A type of credit facility that helps developing countries become more economically self-sufficient. Structural adjustments are intended to reduce the current account debt of a debtor nation, as opposed to financing a new project. They do this by allowing the debtor nation to reschedule principal payments to a later date.

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What Does Structured Finance Mean?

A service that generally involves highly complex financial transactions offered by many large financial institutions for companies with very unique financing needs. These financing needs usually don't match conventional financial products such as a loan.

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What Does Structured Investment Vehicle - SIV Mean?

A pool of investment assets that attempts to profit from credit spreads between short-term debt and long-term structured finance products such as asset-backed securities (ABS). Funding for SIVs comes from the issuance of commercial paper that is continuously renewed or rolled over; the proceeds are then invested in longer maturity assets that have less liquidity but pay higher yields. The SIV earns profits on the spread between incoming cash flows (principal and interest payments on ABS) and the high-rated commercial paper that it issues. SIVs often employ great amounts of leverage to generate returns.

Also known as "conduits".

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What Does Subprime Auto Loan Mean?

A type of auto loan approved for people with substandard credit scores or limited credit histories. There is no official cutoff score for prime versus subprime, but it should be noted that these loans carry higher interest rates than equivalent prime loans, and may also come with prepayment penalties if the borrower chooses to pay off the loan early.

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What Does Subprime Credit Mean?

General term for borrowings of subprime debt, or loans made to people with less-than-perfect credit or short credit histories. Subprime credit includes the original borrowing itself, as well as any derivative products such as securitizations that are based on subprime loans and then sold to investors in the secondary markets.

A big portion of the total market for subprime credit is based on subprime mortgages, or home loans to borrowers of questionable creditworthiness.

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What Does Subprime Credit Card Mean?

A type of credit card issued to people with substandard credit scores or limited credit histories. These cards will typically carry much higher interest rates than credit cards granted to prime borrowers; they also come with extra fees and lower credit limits.

Subprime credit cards are issued by both major issuers and smaller financial institutions that focus only on subprime lending.

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What Does Subprime Loan Mean?

A type of loan that is offered at a rate above prime to individuals who do not qualify for prime rate loans. Quite often, subprime borrowers are often turned away from traditional lenders because of their low credit ratings or other factors that suggest that they have a reasonable chance of defaulting on the debt repayment.

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What Does Subprime Market Mean?

The market for lenders and borrowers of subprime credit, a credit that is lent to people of questionable or limited credit histories. Includes the business of subprime mortgages, subprime auto loans and subprime credit cards, as well as various securitization products that use subprime debt as collateral.

Subprime borrowing comes with a higher interest rate than for borrowers with good credit ratings, as the risk of default is much higher.

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What Does Subprime Rates Mean?

Interest rates charged to subprime borrowers, such as on loans to people with poor credit scores from one or more credit bureau. Subprime rates will be higher than prime rates for the same type of loan, although there is no exact amount or spread that constitutes subprime.

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What Does Subsidiary Bank Mean?

A type of foreign bank that is incorporated in the host country but is considered to be owned by a foreign parent bank. The subsidiary bank only needs to operate under the host country's regulations.

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What Does Substitute Check Mean?

A paper reproduction of a check that is copied electronically. Strict guidelines exists regarding the requirements that must be met for the creation of a substitute check, because the substitute can be legally used in any manner in which the original check could function. Typically, substitute checks are often slightly larger and include pictures of the original check's front and back as well as text declaring that the check is a legal copy.

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What Does Super NOW Account Mean?

An account created in 1982 that offers a higher interest rate than a NOW account but lower interest than a money market account.

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What Does Supervisory Capital Assessment Program - SCAP Mean?

A financial stress test conducted by the Federal Reserve System to assess the capital buffers of U.S. banking organizations. The Supervisory Capital Assessment Program took place in the spring of 2009 during the financial crisis of 2008-2009 and was intended to measure the financial strength of the nation's 19 largest financial institutions going forward.

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What Does Suspense Account Mean?

An account that is used to store short-term funds or securities until a permanent decision is made about their allocation.

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What Does Suspicious Activity Report - SAR Mean?

One of the tools provided under the Bank Secrecy Act (BSA) as a way of monitoring suspicious activities that would not ordinarily be flagged under other reports (such as the currency transaction report.) Suspicious activity reports can cover almost any activity that is out of the ordinary, if that activity gives rise to a suspicion that the account holder is attempting to hide something or avoid reporting under the BSA.

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What Does Swap Bank Mean?

A financial institution that acts as an intermediary for interest and currency swaps. The function of these intermediaries is to find counterparties for those who want to participate in swap agreements. The swap bank typically earns a slight premium for facilitating the swap.

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