Category Archives: Banking

Learn #banking, #fintech and #payments jargon: Collateral

By | June 22, 2021

Collateral Definition: An asset that is delivered by the collateral provider to secure an obligation to the collateral taker. Collateral arrangements may take different legal forms. Collateral may be obtained using the method of title transfer or pledge of assets. An asset or third-party commitment that is used by a collateral provider to secure an… Read More »

Learn #banking, #fintech and #payments jargon: Clearing

By | June 21, 2021

Clearing Definition: The process of transmitting, reconciling and, in some cases, confirming transactions prior to settlement, potentially including the netting of transactions and the establishment of final positions for settlement. Sometimes this term is also used (imprecisely) to cover settlement. For the clearing of futures and options, this term also refers to the daily balancing… Read More »

Learn #banking, #fintech and #payments jargon: Available Balance

By | June 17, 2021

Available Balance Definition: The total funds a participant in a payment system has available for settlement of transactions at any moment. Calculated as a total of some pre-defined components: opening balance net value of credits and debits processed but not applied yes usable minimum reserve requirement account limits collaterals (loans, pledged securities, pledged stock options… Read More »

Learn #banking, #fintech and #payments jargon: Acceptance for Settlement

By | June 17, 2021

Acceptance for Settlement Definition: The moment at which a payment transaction becomes irrevocable as far as the sender is concerned. This is the point at which a transaction passes the tests to determine whether there is sufficient collateral for the transaction to proceed. Details: You have to see this as the last stage of a… Read More »