Amortisation

Means of gradually recovering the moral or physical wear of a fixed asset by introducing the expenditure of sums in accordance with Law 15/1995, republished and modified.

ARB

Romanian Banking Association

Arbitration

The combined operation of buying and selling values or goods based on the appreciation of the differences in their exchange rates, current or future. In the field of banking, arbitration consists of buying values on certain markets where the exchange rate is profitable, in order to resell them on other markets, thus taking advantage of the difference in exchange rates. In currency exchange selling a type of currency in order to buy another is also called arbitration. In the field of international finance arbitration consists in replacing a receivable which can be used in a certain currency and under certain conditions with another receivable which can be used in another currency and under other conditions.

Assets

All the goods and receivables (debts owed) belonging to the economic entity; in the case of a bank assets consist of all its investments in credits, government bonds, bonds, on the interbanking market, on the capital market, on the stock market, etc., to which are added buildings, land, equipment and other immobilizations (participations/ shares owned at other companies).

Assignment

The transfer of the leasing contract from one User to another through an assignment agreement.

ATM

Automated teller machine which allows for cash withdrawal and other electronic banking transactions (landline or mobile telephone or other public utilities payments, transfers from the card account to the current account or transfers from the card account to the virtual card account in order to make Internet purchases) with the help of a bank card and following specific instructions (insert PIN, select banking operation from menu, etc.).

Audit

The examination of a company’s accounting situations and reports; the results are registered in a report which certifies whether, in the auditors’ opinion, the accounting reports examined accurately reflect the financial situation of the company; internal auditing is done by a department within the company; external auditing is done by an independent auditor.

Bank account

Means of depositing and holding money in a bank; the current account or sight deposit carries a very small or no interest at all and offers the client the possibility to withdraw sums at any time; in deposit and savings accounts sums are deposited on due date and these always carry interest.

Bank credit

Fund loan granted by a banking institution. Credits are defined according to duration, destination, collateral, currency, etc. Consumer credit is granted to physical and legal persons for the purpose of acquiring consumer goods on instalment payment.

Bankruptcy

Legal status declared by court order in which a company has ceased payments; the company’s administration after it has been declared bankrupt is attributed to a syndic judge.

Bill

Paper through which a creditor, called dispenser, orders the debtor, called acceptor, to pay at a determined due date a sum of money to a specified person, the beneficiary.

Broker

Person/company that acts as intermediary between the buyers and sellers of securities (most often shares) and papers.

Capital instalment

Part of the financed value returned by the user with every payment.

Capitalization

Gradual increase by addition; interest capitalization is the automatic addition of interest when a deposit matures.

CASCO Insurance

Insurance covering damages to vehicles in the property of the insured incurred as a result of colliding with stationary or mobile bodies, capsizing, skidding, fire, explosion or attempted theft. The insurance also covers complete or partial vehicle theft and catastrophic events.

Cash-flow

The difference between a company’s current proceeds and payments; gross cash-flow is made up of net profit, amortisation and non-demandable provisions; net cash-flow contains net profit after the deduction of taxes and non-demandable provisions.

Central Bank

Bank invested with the functions of issuing currency and handling directly and indirectly the volume and cost of credit on a national level. The main function of a central bank is to ensure monetary stability and oversee its compatibility with economic expansion. It regulates liquidity, organizes compensation payments between banks and acts as correspondent to foreign central banks.

Certificate of deposit

Securities issued by a bank which certify the depositing of a certain sum of money at a fixed interest rate for a certain period of time; they can be nominal, therefore non-transferable or non-nominal, i.e. bearer securities.

Cessation of payment

The situation in which a person or a company in unable to meet debts due to the lack of means of payment.

Check

A document through which the owner of the funds orders to it's banker to pay upfront a third party or inthe favor of the one who orders.

CIP value

In accordance with INCOTERMS 2000-Value/price CIP means the price including only paid transport and insurance to the destination. Customs taxes are not paid.

Collateral

Movable object belonging to a debtor which they deposit with the creditor or in order to guarantee the payment of the debt

Correspondent bank

Bank operating as an agent of a foreign bank.

Credit obligations

The total sum at a certain time of credits of any type registered by a specific person.

DDP Value

In accordance with INCOTERMS 2000-Value/price DDP means price including paid transport and insurance to the destination but also all customs taxes.