Banking Terms Based on the word / phrase from letter E (Part III / IV)

Banking Terms Based on the word / phrase from letter E (Part III / IV) :
Endorsement (Endorsement).

Is an institution in the draft law, by which the rights of holders of notes receivable may diperalihkan to the next holder in a simple way is to sign the draft letter by the holder at the back of the draft letter. Endorsement comes from the French "endossement", English "endorsement", which means a written statement behind the securities. Endos words (French) means the rear. The statement was meant to move the bill right. Habits prevailing in France is the first to write a statement of the rights to the back of the letter if the letter will be peralihkan to others. Habit that followed kept the traffic payment by bank draft (lettre de change).
Enhance Due Diligence. View → Customer Due Diligence.

Enterprise Risk Management (ERM).

Risk management is a concept developed by COSO (see → COSO), which defines that ERM is a process that is carried out effectively (effected) by the Board of Commissioners, Directors, and other personnel of the company, which is applied according to the strategy that has set in throughout the organization , which is designed to identify potential events that could be bad for the company, and manage risk according to risk appettite, and to provide assurance / reasonable certainty about the achievement of company objectives
There are 4 (four) categories of objectives (Objectives) in the ERM:
• Strategic - direction / purpose of the main objectives, which support the mission of the company.
• Operations - effective and efficient use of resources
• Reporting - Accurate, timely and reliable
• Compliance - comply with prevailing laws and regulations.
Coso also set 8 Components of Enterprise Risk Management;
• Internal Environment
• Objective Setting
• Event Identification
• Risk Assessment
• Risk Response
• Control Activities
• Information and Communication
• Monitoring
Relationship between Objectives and Components is, objectives are something that companies are trying to achieve while the component represented as something that needed to achieve the objectives it. (3). (Source: COSO).

Economic Entity.

Auditing is the term for a unit which is the object of audit as the Company, Bank, Bureau / Division / Section / Section of a bank and so on which carry out activities to be examined or audited. (11). (Source: Library No.19).

Equity Investment Risk.


Are the risks faced by Islamic banks, arising as it enters a partnership for the purpose of committing or participating in a particular financing or on a business activity in general as described in the contract, and by which providers of funds involved menaggung business risk "
Risk characteristics of equity investment in question, including considerations of quality partners, the underlying business activities (underlying business activity) and things are going the other. By its nature, this type of equity investment at present as a single unit of risk associated with mudarib or Musharakah partners, activities and business operations. (3); (13).
(Source: Islamic Financial Services Board)

Escrow Account.

Is an account which was opened to accommodate the withdrawal of certain funds can only be done in accordance with specific terms or agreement between the depositor's instructions with the parties concerned with the escrow account.
For example: If the capital injection to fund additional bank capital has not been approved by the AGM or no endorsement in the bank's statutes, then the "to be recognized as a capital injection of funds" funds must be deposited or placed in "escrow account" and its use must be approved by the Bank Indonesia. (11). (Source: Banking Practice).

Escrow Agreement.

Is a computer term for an agreement that allows the assignment of rights to the purchaser of software to be able to have the source code in the event of a software company (software house) suffered bankruptcy. (12).
(Source: Bank Indonesia).

European Union (EU / European Union).

Is a Union (union) which consists of 25 countries (independent state) which was established to strengthen political cooperation, economic and social causes. Previously known as the European Community (EC) or European Economic Community (EEC).
Date of Establishment: January 1, 1993
Countries that have been registered as a member of s / d January 1995 are: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden, Britain, Cyprus, Czeck Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia.
Most of State anngota EU (European Union) has been using the euro currency, s / d in 2004 states that do not use the euro as their currency are: Britain, Denmark, Sweden and the incoming terakir 10 countries (Cyprus, etc.). ( 2). (Source: EU Website)

Offerred Euro Interbank Rate (Euribor).

Which is the benchmark interbank rate time deposits (in Euro) ditawarakan by a prime bank in the euro - zone to another prime bank at 11:00 hours CET. Euribor is calculated daily and cover the period between one day to one year. (2). (Source: NN).

European Central Bank (ECB).

ECB is the central bank for the single European currency is the Euro. The main task of the ECB is to maintain the 'purchasing power'dari Euro and thus maintain price stability in the Eurozone (Euro Area). Euro area covers 12 EU countries that have used and introduced the Euro since 1999. ECB together with the National Central Bank (NCB) of each EU country prepare Eurosystem, the Central Banking System in the Euro Area. The main objective of the Eurosystem is to maintain price stability, and preserve the value of the euro currency.


Have you read : Microfinance Institutions; How to Established a microfinance?

Continued to Part IV/End