glossary on trade financing terms a b c

Glossary on Trade Financing Terms - A
A
Above par:
A share or a bond whose market value is higher than its nominal value or face value. For example, if
long-term interest rates decrease after the issue of the bond, the bond's price will increase above
par. Opposite: Below par
Français: Au dessus du pair
Español: Por encima de la par, por encima de su valor nominal, por encima de la paridad

Acceptance:
A time draft (or bill of Exchange ) on which the drawee has written the word "accepted" over his
signature, thereby becoming unconditionally obliged to pay at maturity. The draft must first be
presented for acceptance, by which the drawee becomes the "acceptor", and then for payment.
(1) Bank(er's) Acceptance :a draft of which a bank is both drawee and acceptor; i.e. the bank gives its
guarantee to make the payment should the buyer default.
(2) Trade acceptance: a draft, usually issued from the sales of merchandise, whose drawee and
acceptor is an individual or a business entity.
Français: Acceptation
Español: Aceptación

Acceptance credit:
Short-term loan by which the bank allows the customer to draw bills on it up to a certain amount
(line of credit). The bills are then accepted and usually also discounted by the bank. Most frequently
used in international trade.
Français: Crédit d’acceptation
Español: Crédito de aceptación

Acceptance price:


In the underwriting business, the price paid by the banks to the issuers for underwriting a new

securities' issue. The acceptance price is lower than the issue price to the general public, the
difference being the banks' gross profit margin or commission.
Français: Prix d’acceptation
Español: Precio de aceptación

Account party:
The party which addresses the bank for the issue of a letter of credit , e.g. the account party can be
an importer, a buyer, a construction contractor or a supplier bidding on a contract.
Français: Partie comptable
Español: Parte solicitante

Accounts payable:
Money due to suppliers. Also called payables and trade payables.
Français: Dettes passives
Español: Cuentas a pagar

Accounts receivable:
Money due from customers. Also called receivables and trade receivables.
Français: Dettes actives
Español: Cuentas a cobrar, activo corriente, activo exigible, efectos a cobrar, valores exigibles

Accrual accounting:
An accounting method where revenues are recognized when earned and expenses when incurred,
regardless of the actual timing of the cash receipts and expenditures. Compare with cash accounting.
Français: Comptabilité cumulative
Español: Contabilidad de valores devengados


Accrued interest:
(1) Interest earned but not collected.

(2) Interest earned, but still unpaid, since the latest payment date.
(3) Interest due from the date of issue or the last coupon date on an interest-bearing security, or
from the last date of payment on a loan.
Français: Intérêts courus
Español: Interés acumulado, interés devengado, interés vencido

Accrued liabilities:
Accounting items entered on the liabilities side of the balance sheet which relate to previous
operations; such as income received during the past financial year but which relates to the new fiscal
year, or expenses incurred during the past year but not payable until the following year.
Français: Passifs transitoires
Español: Pasivo acumulado

Acid test / Quick ratio:
A liquidity ratios measuring a company's ability to pay immediate liabilities. It is expressed as: current
assets less inventories, divided by current liabilities. Compare with Quick ratio.
Français: Ratio de liquidité
Español: Prueba ácida

Active income:
Income resulting from the active conduct of trade or business.
Français: Revenu actif
Español: Ingreso activo


Actual(s):
The physical commodity or security underlying a futures contract. It may also be designated "cash" or
"physicals".
Français: Physique(s)
Español: Actual(s)

ADB:
See African Development Bank, Asian Development Bank.
Français: Banque Africaine de Développement, Banque asiatique de développement
Español: Banco Africano de Desarrollo, Banco Asiático de Desarrollo

Ad Valorem Duty (According to value):
Any charge, tax, or duty (tariff) calculated and applied as a percentage of the value (price) of the
item. The higher the value of an item, the higher the ad valorem duty. See duty.
Français: Droits Ad Valorem (en fonction de la valeur)
Español: Derecho ad valorem

Addendum:
A supplement or appendix attached to a document (such as a bill of exchange ) which can be used
for endorsement.
Français: Addendum
Español: Suplemento

ADR:
Abbreviation for American Depository Receipts


Français: Quittances/Certificats de Dépôts Américains
Español: Recibo americano de depósito

Advance:
A loan, usually short-term (i.e. one to three years), taking the form of an overdraft to a company or
individual.
Français: Avance
Español: Préstamo, anticipo, adelanto

Advance against documents (A/D):
A loan secured by the documents covering the shipments, which remain in control of the creditor.
Français: Avance contre documents
Español: Préstamo contra documentos, adelanto sobre documentos

Advance import deposits:
A foreign exchange control technique whereby importers are required to deposit a percentage of the
value of a product with the designated authorities for a specified period of time.
Français: Avances relatives aux dépôts d’importations
Español: Depósitos previos a la importación

Advanced Payment Bond/Guarantee:
(1) A bond provided by a supplier to a buyer to assure him that advance payments made to the
supplier will be returned if the contractual obligations are not fulfilled. The bond is issued up to the
amount of the advance payments specified in the contract. The value of the bond normally
decreases as the supplier fulfils the obligations for which the advance payments were made. Such
bond may be either conditional or unconditional.


(2) An arrangement whereby a company employing a contractor makes funds available to him to
purchase equipment and to cover the organizational expenses involved in getting the construction
under way.
Français: Obligation, Garantie de paiement anticipé
Español: Bono de pago anticipado, garantía de pago anticipado

Advances:
See Receivables.
Français: Avances
Español: Advances

Advised letter of credit:
A commercial letter of credit whose authenticity has been verified by a bank, usually located in the
beneficiary's country. The bank then advises the beneficiary of the authenticity of the letter of credit,
without however undertaking any payment obligation.
Français: Lettre de crédit notifiée
Español: Carta de crédito notificada

Advising bank:
Also known as the notifying bank. This is the bank operating in the exporter's country which
handles letter of credit on behalf of the foreign bank, by notifying the exporter that the credit has
been opened in his favour and informing him of the terms and conditions of the letter of credit. It
does not necessarily have responsibility for payment.
Français: Banque notificatrice
Español: Banco notificador

Advisory Capacity:


A term designating the fact that the powers of a shipper's agent or representative abroad are limited,
and that he is not authorized to take decisions or make adjustments without previously referring to
his principals. Compare withwithout reserve.
Français: Capacité notificatrice
Español: Calidad de asesor

After date:
A phrase indicating that payments on a draft or other negotiable instrument are due on a specific
date after the presentation of the draft to the drawee. Compare with after sight, at sight.
Français: Après la date
Español: Plazo fecha

After sight:
This expression is written on a draft or other negotiable instrument, meaning that it becomes
payable on a certain date after having been presented for acceptance (e.g. 90 days). The period starts
the date the bill is signed and accepted by the drawee. In order to let the holder of the bill know
when the bill becomes payable, the drawee must add the date of his acceptance.
Français: Après présentation
Español: Plazo vista

After-tax cash flow:
The total cash generated by an investment annually. This is defined as profit after-tax plus
depreciation, or operating income after tax plus the tax rate times depreciation.
Français: Flux de trésorerie après impôts
Español: Flujo de caja después de impuestos

After-tax real rate of return:
This is defined as the after-tax rate of return on an investment minus the inflation rate.


Français: Taux de rentabilité réel après impôts
Español: Tasa de rendimiento real después de impuestos, tasa de rentabilidad real después de
impuestos

African Development Bank:
Established in 1963, with its headquarters in Abidjan, Côte d'Ivoire. The ADB provides financing
through direct loans to African member states to cover the foreign exchange costs incurred in bankapproved development projects in these countries. Fifty-one African countries are members. The
ADB is financed by member countries of the OECD.
Français: Banque Africaine de Développement
Español: Banco Africano de Desarrollo

African Development Foundation (ADF):
An independent, non-profit government corporation established to provide financial assistance to
grass-roots organizations in Africa. The ADF became operational in 1984.
Français: Fondation Africaine de Développement
Español: Fundación africana para el desarrollo, FAD

African Development Fund (ADF):
A fund managed by the ADB.
Français: Fonds Africain de Développement
Español: Fondo africano para el desarrollo

Agency fee (management fee):
An annual fee payable by the borrower, usually to cover the costs incurred by the lender in
administering the loan.
Français: Honoraires, commission d’agence (honoraires, commission de direction)
Español: Comisión de agente, comisión de administración, comisión de gestión


Agency for International Development (AID):
Created in 1961 to administer foreign economic assistance programmes of the US government. AID
has field missions and representatives in approximately 70 developing countries in Africa, Latin
America, the Caribbean and the Near East.
Français: Agence pour le Développement International
Español: Agencia para el Desarrollo Internacional

Agent:
A legally independent person, authorized by another person (the principal) to act on his behalf as an
intermediary or to conclude business transactions. The agent usually receives a fee or a commission
(often a percentage of the sale price) for the services rendered. In a syndicated loan, the agent is the
bank which manages the loan on behalf of the participating banks.

Français: Agent
Español: Agente, representante, mandatario

Agent distributor service (ADS):
A fee-based service providing U.S. exporters with a customized overseas search for interested and
qualified foreign representatives (such as foreign import agents and distributors).
Français: Agent distributeur de services
Español: Servicio de agente distribuidor

Agio
A security sells at agio when its market value is higher than its nominal or par value. In foreign
exchange operations this is the premium paid to exchange one currency for another.
Opposite: Disagio.
Français: Agio, Prime
Español: Agio


Agreed Minute:
This embodies the terms agreed upon in a Paris Club rescheduling meeting. It forms the basis for
bilateral discussions between individual creditor governments (including export credit agencies) and
debtor countries on agreements for implementation of the rescheduling. The Minute normally
specifies the coverage of debt-service payments to be consolidated, the cut-off date, the
consolidation period, the proportion to be rescheduled and the deferred debt.
Français: Procès verbal convenu
Español: Acta aprobada

AIBD:
The Association of International Bond Dealers, setting market trading rules for the secondary
market of Eurobonds.
Français: AIBD

Español: AIBD

Air waybill:
A bill of lading used for the transportation of air freight, describing conditions, liability, shipping
instructions, nature of the commodity and applicable transportation charges. It is a non-negotiable
instrument of air transport acting as a receipt for the shipper, and indicating that the carrier has
accepted the goods listed therein and is thereby committed to carry the consignment to the airport
of destination, according to the specified conditions. Compare Inland Bill of Lading, Through bill of
lading.
Français: Lettre de voiture aérienne
Español: Carta de porte aéreo

All-in cost:
Total costs, whether foreseeable or not.


Français: Tout-inclu dans le coût
Español: Costo todo incluido

All-in rate:
The interest rate on a loan which includes the cost of Compensating balances, Commitment fees and
any other charges.
Français: Tout-inclu dans le taux
Español: Tasa todo incluido

Allonge:
A slip of paper attached to a bill of Exchange , acceptance or notes, providing space for
additional endorsement when the back of the bill is already filled with names.
Français: Allonge
Español: Allonge

All Risks Coverage:
A clause used in marine insurance, providing the shipment with the broadest kind of standard
coverage. It excludes, however, damage to the shipment caused by war, strikes and riots. Compare
with the Free of Particular Average andWith Average clauses.
Français: Couverture de tous les risques
Español: Cobertura contra todo riesgo

Alongside:
A term referring to the side of a ship. Goods to be delivered alongside are to be placed on the dock
or within reach of the transport ship's tackle so that they can be loaded on board. Goods are
delivered alongside at the port of embarkation, excluding loading fees.
Français: Le long
Español: Al costado


Alpha:
A Yield indicator based on the risk of a security or a portfolio in relation to the market risk. A positive
Alpha indicates the extra yield of the security or portfolio awarded to the investor for having taken a
risk, rather than simply accepting the average market return. Thus, an alpha of 0.5 means that the
security or portfolio has outperformed the estimated market-based return by 0.5%. See also Beta.
Français: Alpha
Español: Alfa

American Depository Receipts (ADRs):
Domestically traded securities representing claims of foreign stocks.
Français: Certificats de dépôt américains
Español: Recibo americano de depósito

American option:

An option which can be exercised at any time between the date of purchase and its expiry date.
Compare with a European Option.
Français: Option américaine
Español: Opción estadounidense

Amortization:
(1) The gradual reduction of a debt, through regular repayments of principal instalments and
payment of current interest over an agreed period of time, so as to liquidate the debt.
(2) In accounting, a term indicating the systematic writing off of an account or asset over its
estimated life. See Depreciation.
Français: Amortissement
Español: Amortización


Andean Group:
A group of Latin American countries formed in 1969 to promote regional economic integration
among medium-sized countries. Its member states include Bolivia, Colombia, Ecuador, Peru and
Venezuela.
Français: Groupe andéen
Español: Grupo Andino

Annuity:
A stream of annual cash flows for a specified period of time. Opposite: Perpetuity.
Français: Annuité
Español: Renta anual, anualidad

Antidumping:
A set of laws and practices intended to counteract dumping practices.
Français: Antidumping
Español: Antidumping

A/P (Authority to pay):
An authorization, usually by a bank to a seller, for the purchase, with or without recourse, of draft(s),
document(s) and/or goods up to a designated amount.
Français: Autorisation à payer
Español: Autoridad para pagar

Application for letter of credit:


A written request by an applicant (an importer or purchaser) to his bank to open a letter of credit.
The notification of the opening of the letter of credit is usually done via a correspondent bank.
Français: Demande de lettre de crédit
Español: Solicitud de carta de crédito

Arbitrage:
The purchase of financial instruments (e.g. foreign exchange or securities) or commodities on one
market with the intention of selling them simultaneously on another market to take advantage of the
price differential between the two markets. The arbitrageur (the person carrying on the business of
arbitrage) may earn a profit by exploiting the differences in the rates of exchange or the prices of
securities or commodities involved. Arbitrage is attractive only if the price difference is large enough
to cover the costs incurred (such as the costs of transporting the goods from one market to the
other).
Français: Arbitrage
Español: Arbitraje

Arrangement on Guidelines for Officially Supported Export Credits:
See Consensus.
Français: Dispositions directrices pour les Crédits à l’export officiellement soutenus
Español: Arrangement on Guidelines for Officially Supported Export Credits

Arrangement Fee:
Fee charged by a commercial bank which assists in arranging complex forms of financing,
including export credit insurance. Sometimes called a Management Fee.
Français: Honoraire d’arrangement
Español: Comisión de acuerdo

Arrears:


Generally speaking, debt-service payments not made by the due date. In the specific field of export
credits, arrears are overdue payments by borrowers, which have not yet resulted in claims against
the export credit agencies.
Français: Arriérés
Español: Mora, atrasos

ASEAN:
Association of South-East Asian Nations.
Français: Association des Nations du sud-est asiatique
Español: Asociación de Naciones del Sudeste Asiático

Asian Development Bank (ADB):
Established in 1966 to foster economic growth and co-operation in Asia and to help accelerate the
economic development of members. The ADB headquarters are in the Philippines.
Français: Banque Asiatique de développement
Español: Banco Asiático de Desarrollo

Asian Pacific Economic Co-operation (APEC):
The Asian Pacific Co-operation was initiated by Australia at the Canberra Conference (Australia) of
1989. Its members are: Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand (members of

the Association of South-East Asian Nations countries), plus Australia, Canada, Chile, China, Hong
Kong, Japan, New-Zealand, Papua-New-Guinea, South Korea, Taiwan and the United States.
Français: Coopération économique de l’Asie du Pacifique
Español: Cooperación Económica Asia-Pacífico (CEAP)

Asked/ask price:
The price at which securities (including foreign exchange or foreign bank notes) are offered for sale.
Opposite: Bid.


Français: Cours vendeur
Español: Precio de vendedor, precio de oferta, precio nominal

Asset-backed security:
A security issued by a financial institution and backed by an asset (e.g. a commodity).
Français: Titre garanti par des actifs
Español: Título con activos en garantía

Asset/equity ratio:
The ratio of total assets to stockholder’s equity.
Français: Ratio actifs sur fonds propres
Español: Relación entre activos y beneficios

Asset turnover ratio:
A measure of asset efficiency, defined as net sales divided by total assets.
Français: Ratio actifs / Chiffre d'affaires
Español: Razón de rotación de activos

Assets:
A term indicating everything a company owns which has a monetary value listed on the balance

sheet (cash funds, credit balances, supplies, equipment and facilities, etc.). Assets can be financial
assets (such as bills), fixed assets (equipment) and intangible assets (goodwill, patent).
Opposite: liabilities.
Français: Actifs
Español: Activos


Assignee:
The acquirer of a title, interest or ownership transferred by an assignor. See Assignment.
Français: Cessionnaire
Español: Cesionario

Assignment:
The transfer of the legal right, interest or ownership (title) from a creditor (assignor) to a new
creditor (assignee). A distinction is made between a single assignment (where only a specific claim is
assigned) and a blanket assignment where all receivables are assigned. In the case of an option, an
assignment is made when the option writer (seller) receives an exercise notice obliging him to sell (in
the case of a call) or to buy (in the case of a put) the underlying security at the specified strike price.
Français: Cession
Español: Cesión, traspaso, transferencia

Assignment credit:
A credit granted against the fiduciary assignment of one or several receivables to a bank. The
accounts receivable act as a security for lending. See Discount credit.
Français: Crédit contre cession
Español: Crédito cedido

Assignor:
The person who transfers the title, interest or ownership to a third party. See Assignment.
Français: Cédant

Español: Cedente

Association of International Bond Dealers:
See AIBD.


Français: Association internationale des courtiers en obligations
Español: Asociación de Agentes Internacionales de Bolsa

Association of South-East Asian Nations (ASEAN):
Established in 1967 to promote political, economic and social co-operation among its six member
countries: Indonesia, Malaysia, Philippines, Singapore, Thailand and Brunei. Laos, Papua-New-Guinea
and Vietnam are observers, whereas South Korea has special status.
Français: Association des Nations du sud-est asiatique
Español: Asociación de Naciones del Sudeste Asiático

At best:
A buying or selling order by a customer to a broker, to buy or sell a certain security at the best
currently available price. In the case of a buying order it is therefore "at the lowest possible price",
and "at the highest possible price" in the case of selling order. The buyer or seller does not have to
specify any maximum or minimum price for the execution of the order by the broker.
Français: Au mieux
Español: Por lo mejor

At call:
Money deposited by a bank or at a bank, without any fixed maturity date. The money may be
withdrawn at any time when the depositor "calls" for it.
Français: Sur demande
Español: A la vista

At market:
See At best.
Français: Au prix du marché
Español: At market


At par:
A term meaning the "same value", implying that the price of the security is equal to its face value.
Securities are issued at par, par price, par rate. Compare with above par and below par.
Français: Au pair
Español: At par

At sight:
A term indicating that payment on a draft or other negotiable instrument is due upon presentation
or demand. Compare with After Date, After Sight.
Français: A vue
Español: A la vista

At-the-money option:
An option with an exercise price equal to, or close to, the current market price of the underlying
security.
Français: A l'option monétaire
Español: Opción a la par

Authority to pay:
See A/P.
Français: Autorité de paiement
Español: Autoridad para pagar

Authorized bank:

A bank allowed by a country’s public authorities to process the decentralized payment transfers.
Français: Banque autorisée
Español: Banco autorizado, banca delegada

Aval:
A form of guarantee, generally given by a commercial bank, on a negotiable instrument. An aval is
usually an unconditional guarantee of payment and is not affected by the terms of the underlying
transaction. Avals are recognized only in certain countries (mainly European), though usually not in
countries with an Anglo-Saxon legal base.
Français: Aval
Español: Aval

Average collection period:
The number of days required, on average, to collect accounts receivable.
Français: Période d’encaissement moyenne
Español: Período promedio de cobranza

Average due date:
The mean date of payment of several sums becoming payable at different dates (applies particularly
to a bill of exchange).
Français: Date d’échéance moyenne
Español: Fecha promedio de vencimiento

Average Life:
The sum of the amounts outstanding of the loan at the end of each year, throughout its entire life,
divided by the total principal sum borrowed. It gives the average life of the loan in years.

Français: Vie moyenne
Español: Vida media

Average payment period:
The number of days, on average, in which a firm pays off its accounts payable.
Français: Période de paiement moyenne
Español: Período medio de pago

Average rate of return (ARR):
The ratio of average net earnings to average investment.
Français: Taux moyen de rentabilité
Español: Tasa de rentabilidad media

Average term:
In relation to a bond issue, the maturity calculated on the date halfway between the earliest and the
latest date stipulated for repayment.
Français: Durée moyenne
Español: Plazo promedio

B
Back bond:
A Eurobond created by the exercise of a warrant. Also known as a virgin bond.
Français: Back bond
Español: Bono garantizado

Back-to-Back Letter of Credit:


A letter of credit issued for the account of a buyer of merchandise already holding a letter of credit in
his favour. The back-to-back L/C is issued in favour of the supplier of the merchandise to cover the

shipment stipulated in the L/C already held by the buyer. The terms of L/Cs, except for the amount
and expiration date, are similar, and the same documents presented under the "back to back" L/C are
subsequently used against the L/C in favour of the buyer. However, the buyer or beneficiary of the
first credit, substitutes his draft and invoice for those presented by the supplier.
Français: Lettre de crédit "Back-to-Back"
Español: Carta de crédito garantizada

Back to back loan:
A loan in which two companies in different countries borrow each other's currency for a specific time
period, with repayment of the other's currency at an agreed maturity. This technique allows
companies to eliminate or reduce their foreign exchange risks. Also known as a Parallel loan.
Français: Prêt "Back to back"
Español: Préstamo cruzado en divisas, crédito con garantía de otro crédito

Backwardation:
A term indicating that futures prices of a commodity are lower than spot prices. If a commodity
moves into backwardation the markets expect prices to fall. Opposite: Contango.
Français: Déport
Español: Mercado invertido

Bad debt:
A non-performing loan i.e. a loan which is not repaid. To absorb losses arising from bad debts over a
period of time, banks usually set aside provision out of their profits.
Français: Mauvaise dette, dette irrécouvrable
Español: Deuda incobrable, deuda morosa, crédito fallido

Balance:


An accounting term indicating the difference between the total of all credit items and that of all debit

items.
Français: Solde
Español: Saldo, balance, balanza

Balance of payments:
A statement which summarises all economic transactions between a country and the rest of the
world during a period of time, usually a calendar year. The balance of payments is made up of the
current account balance, reporting the external trade in merchandise and services (including income
on investments), and the capital account, reporting direct and portfolio investments and capital flows
in general.
Français: Balance des paiements
Español: Balanza de pagos

Balance of payments deficit:
A negative imbalance of some specific components within the balance of payments.
Français: Déficit de la balance des paiements
Español: Déficit de la balanza de pagos

Balance of payments surplus:
Opposite of Balance of payments deficit.
Français: Excédent de la balance des paiements
Español: Superávit de la balanza de pagos, excedente de la balanza de pagos

Balance of trade:
The monetary difference between a country's total imports and its exports. If exports exceed imports
the country experiences a favourable balance of trade. Also known as merchandise trade balance.


Français: Balance commerciale
Español: Balanza comercial

Balance of trade deficit/surplus:
When the value of a country's exports is lower/higher than that of its imports.
Français: Balance commerciale déficitaire/excédentaire
Español: Deficit/Superávit de la balanza comercial

Balance Sheet:
A complete double entry account statement of assets and liabilities drawn up by an enterprise on a
specific date (usually at the end of a fiscal year). Total liabilities always equal total assets. The asset
side of the balance sheet provides information on the use of the company's funds. The liabilities’ side
details sources of external financing (i.e. cash, money market loans and advances, etc) and the
composition of the shareholders' equity. Compare with Profit and loss statement.
Français: Bilan
Español: Balance de situación, balance general, balance

Balloon maturity:
See Sinking fund requirement.
Français: Balloon maturity
Español: Requisito de fondo de amortización

Balloon repayment:
A loan whose repayments are not spread evenly over its life. Interest payments are accumulated and
are paid along with the principal in one lump sum at the end of the loan period.
Français: Remboursement unique
Español: Reimbolso balloon


Bank(er's) Acceptance; Bank bill:
A draft or bill of exchange whose acceptor is a bank. When accepted for payment by a bank it
becomes a banker's acceptance and may be used by the drawer or payee as collateral, or may be

sold and discounted. Such an arrangement originates on the initiative of the importer, who instructs
his local bank to provide for a commercial acceptance credit to the bank of the exporter. The bank of
the exporter then issues an acceptance credit, in effect guaranteed by the foreign bank, to the
exporter under which he may draw a time bill of exchange maturing in 60 or 90 days. Supported by
the documents demonstrating the shipment, this bill of exchange is then accepted by the bank
which endorses it, thus signifying that it will pay the bill at maturity. The exporter may retain the bill
until maturity or sell it on the discount market. This technique is frequently utilized in the financing
of foreign trade, making possible the payment of cash to an exporter covering all or a part of the
value of his shipment. When the amounts involved are large and in support of commodity
transactions the banker’s acceptance can be placed on the market and sold through a syndicate of
banks.
Français: Acceptation bancaire, effet bancaire
Español: Aceptación bancaria, letra bancaria

Bank commission:
A bank charge for special services (credit commission) or for risk coverage, added to the interest on
loans extended to its clients.
Français: Commission bancaire
Español: Comisión bancaria

Bank discount rate:
(1) The rate at which a bank discounts notes. A rate quoted on a discount basis understates bond
equivalent yield. This difference must be calculated when comparing the return on yields on a
discount basis and equivalent coupon securities.
(2) A technique of evaluating the yield of short-term non-interest-bearing money market securities to
make them comparable with equivalent coupon securities.
Français: Taux d'escompte bancaire
Español: Tasa de descuento bancario, tasa oficial de descuento