Banking Glossaries-S |
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Schedule I BanksSchedule I banks are domestic banks and are authorized under the Bank Act to accept deposits, which may be eligible for deposit insurance provided by the Canadian Deposit Insurance Corporation. Schedule II BanksSchedule II banks are foreign bank subsidiaries authorized under the Bank Act to accept deposits, which may be eligible for deposit insurance provided by the Canada Deposit and Insurance Corporation. Foreign bank subsidiaries are controlled by eligible foreign institutions. Schedule IIISchedule III banks are foreign bank branches of foreign institutions that have been authorized under the Bank Act to do banking business in Canada. These branches have certain restrictions. Seasonal UnemploymentThe loss of jobs due to changes in the climate and other conditions. Forestry, fishing and construction are affected by climate, while retailing is affected by seasons and holidays. For instance, at Christmas, retail employment is higher than in January. SecuritiesInvestments such as stocks and bonds. Securities/Investment DealerOne who acts as the agent for another party to buy and sell securities and other investments; also an underwriter. Service chargeA fee paid for using a service. Settlement PointsRegional collection points in the clearing and settlement system operated by the Canadian Payments Association. Settlement points forward each bank's regional balance to the Bank of Canada in Ottawa at the end of each day to allow the central bank to adjust the banks' balances with the central bank. Short-term liabilitiesMoney that you have to pay in less than 12 months, including wages, short-term loans, taxes, credit card balances and long-term loans. Small and Medium-sized enterprises (SMEs)There are many definitions for this term. Banks define small businesses as those having authorized credit limits of $500,000 or less, while medium-sized businesses have authorization levels of up to $1 million. Smart CardA card with an imbedded computer chip which stores more information, performs more functions and is more secure than a credit card or debit card. Social Insurance Number (SIN)Every person who has an income or pays taxes must apply for this number, which is assigned by the Government of Canada. You must, by law, provide this number to financial institutions with which you have an interest-bearing deposit account. Society for Worldwide Interbank Financial Telecommunication (SWIFT)A co-operative owned by the international banking community that operates a global data processing system for the transmission of financial messages. Specialized Financing EntityA term in the Bank Act referring to an investment vehicle via which banks are permitted to make venture capital investments. SpreadThe difference between the interest rate charged to borrowers and the interest rate paid to depositors. StagflationA period of time in which both the unemployment rate and the rate of inflation are relatively high. StatementA computer printout which lists all the transactions in a bank account for a period of time. Statements are usually given once a month. StocksTraded on a stock exchange, these are shares in a company. Essentially, you purchase shares in exchange for owning a part of that company. SwapAn agreement between two businesses to exchange commodities, payments or other financial products to reduce the risk of volatile market conditions or to obtain a better price or rate. For example, interest rate swaps, where floating rate interest is exchanged for fixed rate interest, protects a corporation against rises in rates or allows it to take advantage of a better rate. A cross-currency swap enables two parties to enter into an agreement in which one exchanges its currency for the other's to meet their separate requirements. Syndicated LoansLoans to a company backed by a group of banks in order to share the risk in a large transaction among several financial institutions. There is usually a lead bank and several participating banks.
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