| No. | Item | Definition |
|---|---|---|
| 1. | accrual | recognized but unpaid amount |
| 2. | AML | anti-money laundering controls |
| 3. | amortization | gradual repayment over time |
| 4. | audit | independent review of records |
| 5. | authorization | formal approval to proceed |
| 6. | basis point | one hundredth of a percent |
| 7. | basis risk | risk spreads move unexpectedly |
| 8. | benchmark | standard used for comparison |
| 9. | bond | tradable debt security |
| 10. | budget | planned income and spending |
| 11. | burn rate | speed of cash spending |
| 12. | buyback | repurchase of issued securities |
| 13. | cash flow | money moving in and out |
| 14. | collection | receipt of incoming payments |
| 15. | commercial paper | short-term unsecured corporate debt |
| 16. | concentration | centralizing cash in one account |
| 17. | counterparty | the other party in a deal |
| 18. | coupon | bond’s periodic interest payment |
| 19. | covenant | contractual promise in financing |
| 20. | credit | ability to borrow or trustworthiness |
| 21. | debenture | unsecured corporate debt instrument |
| 22. | debt | money owed to lenders |
| 23. | default | failure to meet obligations |
| 24. | deficit | amount below requirements |
| 25. | deposit | money placed with a bank |
| 26. | disbursement | payment of funds out |
| 27. | discount | amount below face value |
| 28. | drawdown | borrowing funds from a facility |
| 29. | duration | interest-rate sensitivity measure |
| 30. | equity | ownership capital in a company |
| 31. | EURIBOR | euro interbank offered rate |
| 32. | exposure | amount subject to risk |
| 33. | facility | agreed source of financing |
| 34. | fair value | current market-based value |
| 35. | float | time before funds clear |
| 36. | forecast | estimate of future amounts |
| 37. | forward | contract for future exchange |
| 38. | funding | money raised to finance operations |
| 39. | FX | foreign exchange market or trades |
| 40. | governance | oversight and decision framework |
| 41. | guarantee | promise to cover another’s debt |
| 42. | haircut | reduction in collateral value |
| 43. | headroom | unused borrowing capacity remaining |
| 44. | hedge | position reducing financial risk |
| 45. | in-house bank | internal group banking function |
| 46. | interest | cost of borrowing money |
| 47. | issuance | selling new securities |
| 48. | KYC | customer identity verification process |
| 49. | letter of credit | bank payment undertaking |
| 50. | leverage | use of borrowed money |
| 51. | lien | legal claim on assets |
| 52. | liquidity | availability of cash or funding |
| 53. | mark-to-market | valuation using current prices |
| 54. | market risk | risk from market moves |
| 55. | maturity | date principal becomes due |
| 56. | money market | market for short-term funds |
| 57. | netting | offsetting amounts to one balance |
| 58. | nostro | our account held abroad |
| 59. | note | debt instrument, usually shorter-term |
| 60. | notional | reference amount for a contract |
| 61. | operational risk | risk from failed processes |
| 62. | option | right to buy or sell |
| 63. | overdraft | negative account balance |
| 64. | overnight | lasting or maturing next day |
| 65. | par | face value of a security |
| 66. | pledge | granting assets as security |
| 67. | policy | formal rule or guideline |
| 68. | pooling | combining balances across accounts |
| 69. | premium | amount above face value |
| 70. | principal | original amount borrowed or invested |
| 71. | provision | amount set aside for loss |
| 72. | rating | creditworthiness assessment grade |
| 73. | reconciliation | matching records for accuracy |
| 74. | redemption | repayment of a security |
| 75. | refinancing | replacing old debt with new |
| 76. | remittance | payment sent to a recipient |
| 77. | repo | sale and repurchase financing |
| 78. | reserve | funds held for contingencies |
| 79. | revolver | credit line with reusable borrowing |
| 80. | risk | chance of financial loss |
| 81. | rollover | renewal of maturing debt |
| 82. | settlement | final transfer of cash |
| 83. | SOFR | secured overnight funding benchmark |
| 84. | solvency | ability to meet long-term debts |
| 85. | spot | immediate settlement transaction |
| 86. | spread | difference between two rates |
| 87. | surplus | amount exceeding requirements |
| 88. | sweep | automatic transfer between accounts |
| 89. | syndication | loan shared by multiple lenders |
| 90. | tenor | length of time to maturity |
| 91. | term loan | loan with fixed repayment period |
| 92. | treasury | management of cash and funding |
| 93. | underwriting | guaranteeing sale or financing |
| 94. | utilization | portion of facility used |
| 95. | value date | date funds become effective |
| 96. | variance | difference from plan or target |
| 97. | volatility | degree of price fluctuation |
| 98. | vostro | your account held by us |
| 99. | working capital | short-term operating funds |
| 100. | yield | income return on an investment |
