CAMELS: CAMELS is a type of Bank Rating System. (C) stands for Capital Adequacy, (A) for Asset Quality, (M) for Management ,(E) for Earnings, (L) for Liquidity and (S) for Sensitivity to Market Risk.
OSMOS: Off-site Monitoring and Surveillance System.
Free market: A market economy based on supply and demand with little or no government control.
Retail banking: It is mass-market banking in which individual customers use local branches of larger commercial banks.
Eurobond: A bond issued in a currency other than the currency of the country or market in which it is issued.
PPP: Purchasing Power Parity is an economic technique used when attempting to determine the relative values of two currencies.
FEMA Act: Foreign Exchange Management Act, it is useful in controlling HAWALA.
Hawala transaction: It’s a process in which large amount of black money is converted into white.
Teaser Loans: It’s a type of home loans in which the interest rate is initially low and then grows higher. Teaser loans are also called terraced loans.
ECB: External Commercial Borrowings, taking a loan from another country. Limit of ECB is $500 million, and this is the maximum limit a company can get.
CBS: Core Banking Solution. All the banks are connected through internet, meaning we can have transactions from any bank and anywhere. (e.g. deposit cash in PNB, Delhi branch and withdraw cash from PNB, Gujarat)
CRAR: For RRB’s it is more than 9% (funds allotted 500 cr) and for commercial banks it is greater than 8% (6000 cr relief package).
NBFCs: NBFC is a company which is registered under Companies Act, 1956 and whose main function is to provide loans. NBFC cannot accept deposit or issue demand draft like other commercial banks. NBFCs registered with RBI have been classified as AssetFinance Company (AFC), Investment Company (IC) and Loan Company (LC).
IIFCL: India Infrastructure Finance Company Limited. It gives guarantee to infra bonds.
IFPRI: International Food Policy Research Institute. It identifies and analyses policies for meeting the food needs of the developing world.
Currency swap: It is a foreign-exchange agreement between two parties to exchange aspects (namely the principal and/or interest payments) of a loan in one currency for equivalent aspects of an equal in net present value loan in another currency. Currency
swap is an instrument to manage cash flows in different currency.
WPI: Wholesale Price Index is an index of the prices paid by retail stores for the products they ultimately resell to consumers. New series is 2004 2005. (The new series has been prepared by shifting the base year from 1993-94 to 2004-05). Inflation in India is measured on WPI index.
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