Definition of Accounts Payable and Accounts Receivable

Accounts Payable
An accounting entry that represents an entity’s obligation to pay off a short-term debt to its creditors. The accounts payable entry is found on a balance sheet under the heading current liabilities.
Accounts payable are often referred to as “payables”.
Another common usage of AP refers to a business department or division that is responsible for making payments owed by the company to suppliers and other creditors.

10 Essential Banking Terms You Need to Know

10 Essential Banking Terms You Need to Know

1. Compound interest:
To put it simply, this refers to interest paid on the returns your money earns, so that your principal balance grows at a faster pace. Compounding is an important concept to understand, as it can play a vital role in achieving long-term financial goals, like saving for retirement.

Definition of Call Money, Call Money Rate,Call Loan and Call Market

Definition of Call Money, Call Loan and Call Market, Call Money Rate

Call Money

Call money is money loaned by a bank that must be repaid on demand. Unlike a term loan, which has a set maturity and payment schedule, call money does not have to follow a fixed schedule. Brokerages use call money as a short-term source of funding to cover margin accounts or the purchase of securities. The funds can be obtained quickly.

Brokerages know that they are taking on risk by using funds that can be called at any time, so they typically use call money for transactions that will be resolved quickly. If the bank recalls the funds then the broker can issue a margin call on its clients in order to make the repayment. The call money rate is used as the interest rate on the loans.

Defining BACH, BEFTN and RTGS

Defining BACH, BEFTN and RTGS

Bangladesh Automated Clearing House (BACH):

BACH is an electronic network for financial transactions in Bangladesh.

BACH, the first ever electronic clearing house of Bangladesh, has two components – the Automated Cheque Processing System (ACPS) and the Electronic Funds Transfer (EFT). Both the systems operate in batch processing mode- transactions received from the banks during the day are processed at a pre-fixed time and settled through a single multilateral netting figure on each individual bank’s respective books maintained with the Bangladesh Bank. A state-of-the-art Data Center (DC) and a Disaster Recovery Site (DRS) have been established comprising of most modern software and hardware for dealing with the operations of BACH. A Virtual Private Network (VPN) has been created between the participating commercial banks and Data Center (DC) & Disaster Recovery Site (DRS) for communicating necessary information related to BACH. Digital Certificate has been formulated for the first time in Bangladesh for secured data communication.