Tuesday, August 16, 2011

Banking Terms Based on the word / phrase from letter B (Part II)

Banking Terms Based on the word / phrase from letter B (Part II) :


Blue Chip.

Is the common stock (common stock) that has a good fundamental performance, as always posted a profit in recent years, have a good peertumbuhan, divide the dividend, has a reputation for good management and so on

BMT (Baitul Mal wa Tamwil).

Are financial institutions engaged in three areas, namely:
(1) As financial institutions in this regard to manage money with a revenue sharing scheme, buying and selling, ijaroh and other forms;
(2) is as an institution engaged in the business unit (real sector).
(3) Engaged in the social field by managing funds from zakat, infaq, shodaqoh waqf.

Bookbuilding.

Is SBSN sales activities to the Party through the selling agent, where the selling agent in the purchase order to collect a predetermined bidding period

BOPO (Operational Cost of Operational Income).

Is the ratio of Operating Expenses to Operating Income is calculated as a percentage. BOPO is a measure of operational efficiency of banks, in other words, the smaller the percentage could be considered the more efficient bank operations are concerned, contrary BOPO that exceeds 100% indicates that the bank is operational loss due to higher cost of revenues

BOT (Build-Operate-Transfer).

Is a pattern in the investment of a project in which foreign suppliers build and operate an installation / project is complete with operating profits earn rewards projects / installations during a certain period (or before it handed over to local firms) as payment for the cost of construction or installation project which issued by overseas suppliers

Bretton Woods.

Or better known as the Bretton Woods System, is a system of monetary management (monetary management) which sets the rules governing commercial and financial relations among the major industrial countries of the world. Bretton Woods System is a rule that is first agreed in regulating monetary relations among independent nation-states in order to rebuild the shattered world economy after World War II.

Bridging Finance.

Is financing the (temporary) conducted either by a bank or investor financing before the company acquires a more definite (fixed) on a stage in the provision of credit or financing a project. If Bridging Finance made by the bank, it must be repaid after the actual financing provided. If Bridghing Finance by investors, the recall of Bridging Finance by investors after the credit from the banks liquid, can only be done with certain requirements in accordance with the bank credit agreement. Another term often used for such financing is a 'mezzanine financing

Broker Bidding Limit.

Is the nominal amount per day from the bank approval to the broker to do his bidding or auction Securities and OMO transactions for and on behalf of the Bank. Broker Bidding Limit must be set in a separate agreement between the Bank and Broker with the format of the agreement submitted to each Member of the BI-SSSS as needed. Banks are required to make a confirmation letter to the broker bidding limit designated broker and designated broker shall submit a letter of confirmation to the Operator Transactions with Bank Indonesia.


Interest (Interest).

Is the price paid for the use of money for a certain period of time. Interest is set based on a certain percentage of money that is used with a period of one year (pa or per-annum). Another term commonly used is the "Interest".

Stock Exchange.

Is the party that organizes and provides a system or means of trading securities (securities). In the past (before 2007) there are two (2) Stock Exchange, the Jakarta Stock Exchange (JSX) and Surabaya Stock Exchange (SSX). Both are run by the Limited Liability Company, the Jakarta Stock Exchange and Surabaya Stock Exchange. Holders of shares of stock exchange brokers are (broker) members of the relevant stock exchanges which have been obtained Izan business as a Broker-Dealer.

Business Plan.

Is a work plan that at least the following:
1. Feasibility study on market opportunities and economic potential.
2. Plan activities include raising and fund distribution activities as well as steps to be taken in realizing the plan; and
3. Projected balance sheet, income statement and cash flow statements monthly for 12 months starting from the bank's operational activities.
Above business plan (for a period of one year) is one attachment in applying for license filing principle the establishment of new banks. (2). (Source: Bank Indonesia).

Business Continuity Management (BCM).

Is a component of significant operational risk management, a comprehensive business approach that includes policies, standards and sprosedur to believe that a certain operating activities (specific) can be maintained or restored within a reasonable time in case of an emergency / disaster (disruption). Its goal is to minimize the consequences material to the operational, financial, legal, reputational as a result of emergency / disaster (disruption) is.

Buyer's Credit.

Is a facility given to the importer (buyer's) provided by banks abroad to finance imports of goods originating from the state bank facilities overseas providers. This facility is an exporter of government programs in order to increase exports of the country concerned. In this facility, the importer gets the credit facility in the form of delayed payments for imports (import financing) with relatively lower mortgage interest because fundingnya from the outside than the mortgage interest to be funded from domestic

Buyout (in the purchase of shares).

Are purchases made by outside investors by controlling majority shareholding in a company / bank (more than 50%) and thus the buyer becomes the controlling ownership of the company. Mastery is also known as the Leverage Buyout (LBO). Another popular term for the same thing is acquisition or Takeover.

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