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

Banking Terms Based on the word / phrase from letter C (Part III/IV) :
Commercial Papers (CP).

Is a short-term debt (typically a maximum 9 months), issued by a company (generally large companies with good performance) with a discount system. CP is an unsecured debt (unsecured promissory Notes).
CP may be an alternative placement of funds for banks and in Indonesia should be rated by independent rating agencies. Currently agencies are PT. Pefindo (Rating Agency of Indonesia).
Bank Indonesia stipulates that CP rating that can be made the object of investment of bank funds only PA.1 s / d PA.4 (Investment grade).

Commitment Letter.

Is a 'statement' issued by the bank stating that the bank will provide a financing facility or other facility if the holders 'Commitment Letter' concerned meets the specified requirements. Commitment Letter is based on good faith (in a good faith) and the commercial and not a definitive document. To be able to reach the point, the customer must meet the necessary requirements and carry out transactions dikemukan in the 'Commitment Letter' in accordance with the intention of publishing the letter. Commitment Letter may also be issued by a Leasing Company as a representation or warranty that the Leasing Company will provide financing Lease Purchase of a capital goods.

 see Compliance Director Compliance Director.

Compound Interest.

Is the method of calculating interest which is not only based on the principal but by the principal of the loan plus interest thereon which have expired. Other terms are 'Flowers blooming'.

COMWIL (Cost or market the which ever is lower).

Is a method of determining the value of securities, especially for the presentation of the position of securities in the Bank Financial Statements (Balance Sheet). The value specified role in the Balance Sheet value of securities is based on the value of the lower of cost or market value (cost or markers of the which ever is lower).

Confirmed Irrevocable L / C.

Is the L / C guaranteed by the issuing bank for payment in addition, also guaranteed by the advising bank or other party designated in the L / C (Confirming bank) that are irrevocable.

Consular Invoice.

Invoices are issued by the official agency that is the embassy / consulate / representative of the buyer country or made by exporters who legalized by the embassy or consulate / representative of the purchaser or the friendly country of the buyer country.

Container B / L.

Is the B / L stating that the transport of export goods at B / L by using the container.

Contingency Funding Plan (CFP).

Is a set of policies and procedures which is the blueprint (blueprint) for a bank in meeting the needs of the fund in a given period at a cost (cost) specific. CFP is a projection of future cash flow and funding sources of a bank in the scenario of a particular market situation, including the sharp rise in asset growth or rapid decline in liabilities. To be effective, the CFP should be a manifestation of management's best estimate of the change in position of balance that can be derived from the events / transactions on the aspect of liquidity or credit. CFP may provide a useful framework for managing liquidity risk both short and long term. Further CFP helps to believe that a bank to apply prudential principles, effectively manage liquidity fluctuations in both routine and face large fluctuations.
Coverage of the CFP:
The complexity of a CFP depends on the size (size), nature (nature) and the complexity of the business, risk exposures and organizational structure. To begin with, the CFP should be anticipating all the bank's funding and liquidity needs through:
1. ANALISYS and projecting the flow of funds (funds flows) quantitatively from on and off Balance Sheet and the impact caused.
2. Matching potential cash flows with the use of funds.
3. Establish an early warning indicator for management to establish a level of potential risk.

Contingent Liabilities Contingent Liability  see.

Control Environment (Environmental Control).

Is the attitude and activity (attitute and activities) of the Board relating to the importance of control in the organization. Control Environment form the discipline and structure to achieve the main objectives of the internal control system. The control environment includes the following elements:
 Integrity and ethical values.
 Management's philosophy and operating style
 Organizational structure
 Assignment of authority and responsibility
 Human Resource Policies and Practices
 Competence personnel.

Controller (Host - Front End).

Known also as the Telecommunications Control Unit (TCU), is a computer term for a kind of mini computer that serves to control the performance of hardware and software that exist on a system, such as a computer terminal or ATM, network communications or other computer means (12). ( Source: Bank Indonesia).

Convertible Preferred Shares (the Commercial Bank Recapitalization).

This term is related to the recapitalization of commercial banks, are stocks that:
1. Have voting rights on matters that are strategic (Stategic Voting Rights) is limited to:
o The appointment or dismissal as well as important changes in the management of commercial banks, mergers, acquisitions, liquidation is done voluntarily (other) based on Bank Indonesia policy, asset sales that are not directly related to its business activities, issuance of new shares or similar instruments stock others, as well as the determination of dividend declaration.
o Appointment of directors to represent the Government as holder of Preferred Stock;
o Obtaining payment of dividends are cumulative or not cumulative;
o Obtaining advance payment in the case of banks in liquidation.
2. Conversion of the Preferred Stock into common stock immediately upon:
o Government as holder of Preferred Stock Shares Preferennya assign or sell to another party;
o There was a breach of the Recapitalization Agreement is not completed;
o Sale of Additional Preferred Stock by management to investors without government approval.

Core Principles.

Core Principles are a framework which is the minimum standard in sound banking supervision practices that are universally aplikabel. Basel Committee developed the Core Principles and Methodologinya as a contribution to strengthening the global financial system. Weaknesses in the banking system in a State, both in developed countries and in developing countries can threaten financial stability both for the country and internationally. The Basel Committee believes that implementation of core principles in all States is a significant step forward for improving financial stability domestically and internationally, and provides a good basis for continued development of an effective system of banking supervision.
Basel Core Principles define the 25 (twenty five) principles that are necessary in a system of effective banking supervision, namely the principles relating to:
(1) Principle 1: Objectives, independence, powers, transparency and cooperation.
(2) Principle 2; permissible activities.

Banking Terms Based on the word / phrase from letter C (Part I/IV)

Banking Terms Based on the word / phrase from letter C (Part I/IV) :
Call Money.

Is the placement / borrowing short-term funds (in days) between banks. Bank call money is an instrument in overcoming the shortage or surplus funds of short-term temporary. For banks that put an Asset Call Money Bank, and for banks that accept placement of the Call Money is an obligation (debt or liabilities). Call money is recorded in the accounts between banks - "Claims on other banks' - for Assets and" other liabilities to the Bank "- for Liabilities.
BIS (Bank for International Settlements) Call Money defines as "the which a loan contract is automatically renewed everyday Unless the lender or the borrower That indicates it wishes the funds to be returned within the short period of time"

Call Option.

Is the placement of the right (but not the obligation) to buy something (assets, shares or a particular currency) at a time when that would come within the agreed period at a specified price and amount of time now (the moment of placing the right).

CAMELS (Capital Adequacy, Asset Quality, Management, Earning, Liquidity and Sensitivity to market risk).

Are the factors evaluated in the assessment of the soundness of banks, namely;
1. Capital Adequacy (Capital Adequacy) measured from the assessment of the components:
a) Adequacy, composition, and projected capital and the ability of capital to cover the Bank in troubled assets.
b) Ability to maintain bank needs additional capital from profits, Bank capital plan to support business growth, access to capital sources, and financial performance of the shareholders to increase the capital of the Bank.
2. Quality of Earning Assets (Asset Quality) includes assessment of the following components:
(A) The quality of productive assets, concentration of credit risk exposures, the development of earning assets and the adequacy of PPAP.
(B) Adequacy of policies and procedures, systems review (reviews) internal, system documentation and handling performance earning assets.
3. Management (Management), includes assessment of the following components:
a) Kualitasn general management and implementation of risk management
b) Compliance with the Bank to the applicable provisions and commitments to Bank Indonesia or other parties
4. Profitability (Earning), includes assessment of the following components:
(A) Achievement of return on assets (ROA), return on equity (ROE), net interest margin (NIM) and the level of bank efficiency.
(B) The development of operating income, income diversification, application of accounting principles in the recognition of revenues and expenses and operating profit outlook.
5. Liquidity (Liquidity), includes assessment of the following components
(A) The ratio of assets / liabilities of liquid, the potential maturity mismatch, the condition of the Loan to Deposit Ratio (LDR), cash flow projection, and the concentration of funding.
(B) Adequacy of policy and liquidity management (asset and liability management or ALMA), access to funding sources and funding stability.
6. Sensitivity to market risk (Sensitivity to market risk), includes assessment of the following components:
a) The ability of the Bank's capital to cover potential losses as a result of fluctuations (adverse movement) interest rates and exchange rates
b) Adequacy of risk management markets.

Cancelled Check.

Is a check that has been used and has been paid or have been recorded (debited) by the bank on the account in question. This check is a testament to the withdrawal of money / funds from the account in question and is the bank's archives. On some offshore bank, a copy of canceled check is sent back to the joint account holder with copies of newspaper accounts that berangkutan. In Indonesia it is not uncommon.

Capital Account.

This term is used in the context of macro economy, which is a measure of sales or purchases in the form of direct investment assets / direct investment (like buying a factory), or investment portfolio / portfolio investment (like buying stocks and bonds) in a country from / to foreigners ( other countries). If the state is in deficit on its current account, then inevitably have to look for ways to close the deficit, among other countries to sell assets to foreigners or borrowing from abroad, especially in the form of the state's bond sales to overseas parties. Sale of state assets and bonds to foreign countries in the capital account is managed.

Capital Gain.

Is an increase in the dollar value of a capital asset such as stocks, bonds, land, antiques or other assets that generate profits if the assets are sold.

Capital Loss.

Is the inverse of Capital Gains, which conducted the sale of shares held under the purchase price. For example the purchase price of a share of Rp. 26,000, - per sheet, then in certain circumstances be sold at a price of Rp. 23,000, - per sheet. Losses amounting to Rp. 3.000, - perlembar called Capital Loss.

Capital Lease (Lease purchase of capital goods).

Is the leasing of capital

How to Get a Car Loan Easyly

How to Get a Car Loan Easyly : Actually, to get a car loans its same with the tips in getting Mortages loan. you can read again my post before, about "an asy way to get mortages". in all of proccess to get a car loan its same with proccess in getting mortage loans. the different just in physical product. If you have submitted your mortages loan application, if the application approved, automatically you will get a cash money that you can use to buy a home.

And that also will you get if you have submitted you car loans applications, and its approved, you will get a new car or second hand car. and all of that of course with some Terms and Conditions from the company or bank where we get a loans.

So, you need to read and understand all of the terms and conditions in order you not have a problem in the future time.

Lets see a youtube video below about How To Get A Car Loan Fast, Even If You've Never Applied :



Risk Management