Banking Glossaries-N

N.S.F. Cheque

N.S.F. means Not Sufficient Funds. If a cheque is returned for this reason, it means that there was not enough money in your bank account to cover the amount of the cheque. There is a fee to you if this situation occurs.

Net Interest Margin

Net interest income (the difference between interest income and interest expense) as a percentage of average total assets.

Netting

The offsetting with a counterparty or counterparties of financial obligations or payments one is owed with those one is entitled to receive. Netting is also used as a risk management tool to help counterparties, thus reducing the costs arising out of payment settlements.

North American Free Trade Agreement (NAFTA)

An agreement among the United States, Canada and Mexico that allows for freer trade between the three countries.