glossary

Concept that some large banks might receive government support to avert systemic crisis.

Additional security protocol for online card transactions (e.g., Verified by Visa).

Organization setting accounting and auditing standards for Islamic financial entities.

A financial free zone in Abu Dhabi with separate regulatory framework.

A record summarizing all transactions and balances over a given cycle.

A batch processing system for electronic deposits and payments.

The bank that processes card transactions for merchants.

Banks that advise on or guarantee payment under a letter of credit.

Measures outperformance relative to a benchmark.

Any crypto asset alternative to Bitcoin, used in various blockchain projects.

Gradual reduction of a loan balance through scheduled payments.

An individual who provides early-stage funding in exchange for equity stakes.

Reflects the yearly cost of borrowing, including fees and interest.

Annual rate of return factoring in compounding over the year.

Preventing illegal funds from entering the financial system through oversight and reporting.

Party requesting the LC (importer) vs. party receiving payment (exporter).

Down payment giving the right to proceed or cancel a sale, forfeiting the deposit.

Algorithms that process and learn from data, widely used in banking analytics.

Distributing funds among asset classes (stocks, bonds, cash) to meet objectives.

Professional oversight of investment portfolios to meet specific objectives.

Self-service machine enabling cash withdrawals and other banking tasks.

A chronological record tracking transactions and changes to data.

Independent review of financial records to ensure accuracy and compliance.

Financing for a vehicle purchase, often secured by the car.

The typical or mean amount an account holds over a defined period.

Charitable endowment under Shariah, often managed for community benefit.

A UK-based method for low-value, bulk electronic payments and direct deposits.

External rescue vs. internal creditor-funded recapitalization for a distressed bank.

A large lump-sum payment due at the end of a financing agreement.

An assurance that a bank will cover a borrower’s liability if default occurs.

US regulation mandating recordkeeping/reporting to combat money laundering.

Earlier international accords establishing foundational bank capital requirements.

Global banking framework establishing more rigorous capital and liquidity standards.

Controversial structure of buy-back arrangement for short-term financing.

Full name for Salam contract, where payment precedes delivery of goods.

Indicates volatility or sensitivity of an asset compared to the overall market.

Difference between the highest buy offer and lowest sell offer for an asset.

Extremely large datasets analyzed for insights in marketing, risk, and fraud.

A shipping document acknowledging receipt of goods for transport.

An unconditional order to pay a fixed sum on demand or at a future date.

Identifying individuals by unique biological traits (fingerprint, face).

Leading cryptocurrencies with differing functionalities and ecosystems.

A distributed ledger system enabling secure, tamper-resistant transaction records.

Shares in large, stable companies with a record of reliable performance.

A debt instrument issued by entities, promising periodic payments and principal return.

A cheque returned unpaid due to insufficient funds or other bank refusal.

Short-term financing that helps cover interim costs until longer-term funding is arranged.

Intermediary facilitating buying and selling of securities on behalf of clients.

Sustained upward trend vs. downward trend in stock prices.

A single, large repayment of principal at a loan’s maturity.

Split payment solutions offered at checkout, gaining popularity in UAE e-commerce.

A flexible banking account providing on-demand withdrawals in the UAE.

A system evaluating a bank’s health: Capital, Assets, Management, Earnings, Liquidity, Sensitivity.

Spending on acquiring or upgrading physical assets for a business.

Bank capital measured against risk-weighted assets for stability.

Profit realized when an asset’s selling price exceeds its purchase price.

Forecast of incoming and outgoing funds to manage liquidity.

A digital form of a national currency issued by the central bank.

The primary authority overseeing monetary policy and banking regulation in UAE.

Entity holding securities in electronic form, facilitating settlement processes.

A time-bound deposit instrument with a fixed return, similar to term deposits.

A UK system for high-value, same-day bank-to-bank transfers.

A card requiring full balance payment each billing cycle.

A transaction reversal initiated by a cardholder's bank due to dispute or fraud.

Automated conversational tool for customer service and simple banking tasks.

A written order instructing a bank to pay a specified amount from an account.

Reconciliation and final transfer of funds among banks post-transactions.

Intermediary ensuring each party to a trade meets its obligations.

Banking infrastructure and services hosted on cloud platforms.

A third party who agrees to fulfill repayment if the primary borrower defaults.

An asset pledged to secure a loan, subject to seizure if default occurs.

Efforts and measures to block financial support for terrorist activities.

Short-term unsecured debt instrument issued by corporations for working capital.

Basic goods (oil, metals, etc.) that are interchangeable and traded in markets.

Futures contracts where the underlying asset is a physical commodity.

Shariah structure using commodity trades for liquidity or financing needs.

Global standard for automatic exchange of financial account data among jurisdictions.

Responsible for ensuring a bank adheres to regulations, laws, and internal policies.

Legislation (notably in UK) governing consumer credit agreements and protections.

Safeguards ensuring fair treatment of customers in banking and credit services.

Tap-and-go method leveraging RFID/NFC technology for quick transactions.

A debt security from a corporation offering periodic payments and principal return.

Banking services tailored to corporations, large enterprises, and institutions.

A bank acting on behalf of another bank in a foreign location.

The interest rate stated on a bond, paid to bondholders periodically.

Conditions in a loan agreement requiring certain actions or restrictions.

An agency collecting and distributing credit information on individuals or firms.

A revolving line of credit allowing cardholders to make purchases up to a limit.

A contract that transfers the default risk of a bond from one party to another.

An arrangement allowing a firm to borrow up to an agreed limit.

The maximum amount a borrower can utilize on a credit product.

Firms like Moody’s, S&P, Fitch that evaluate and rate debt issuers’ risk.

A grading assigned by agencies indicating risk level of issuers.

A record detailing a person’s or entity’s borrowing and repayment history.

Major categories of financial exposure managed by banks’ risk departments.

A numerical measure indicating the likelihood of timely debt repayment.

Portion of available credit in use, affecting credit scores.

Evaluation of an entity’s ability to honor debt obligations.

A provision triggering default on one loan if default occurs on another.

Raising small amounts of capital from many individuals, typically online.

Digital currency secured by cryptography, independent of central banks.

Filed for large cash deposits/withdrawals exceeding specified thresholds.

A foundational account type commonly used in UAE for day-to-day transactions.

Account where assets are held and managed on someone else’s behalf.

An entity safeguarding financial assets on behalf of clients.

Gathering information to assess a customer's risk profile when onboarding.

A security code on payment cards used for verifying card-not-present transactions.

Protecting digital banking networks and data from cyber threats.

Techniques using past data to forecast future trends in finance.

Regulations governing how organizations handle and protect personal data.

Linked to a bank account for direct withdrawal of funds at purchase or ATM.

A measure in UAE capping the percentage of monthly income used for debt.

Combining multiple debts into a single loan or account.

Adjusting debt terms to avoid default or to improve repayment viability.

Ratio comparing monthly debt obligations to monthly gross income.

Advanced machine learning method with multi-layer neural networks.

Failure to make required payments on a loan or to meet its conditions.

Blockchain-based financial services operating without centralized intermediaries.

Funds accessible at any time without prior notice.

System guaranteeing depositor funds if a bank fails, present in UAE to some degree.

Financial contracts deriving value from an underlying asset (stocks, rates, etc.).

Delivering banking services electronically, reducing need for physical branches.

Electronic credentials verifying user identities, crucial for online banking.

Opening new accounts or services entirely online through digital processes.

Cryptographic signature verifying authenticity of electronic documents.

An electronic alternative to physical wallets, storing payment details on devices.

Shifting banking services from physical branches to digital platforms.

Pre-authorized withdrawal from a payer’s account for recurring bills.

A shared database across a network, foundational to blockchain systems.

Spreading investments across various assets to lower overall risk.

A distribution of a company’s profits to its shareholders.

An LC requiring specific documents before funds release, common in trade.

Investing fixed amounts periodically to mitigate market timing risks.

An account with prolonged inactivity, requiring special handling by banks.

Initial sum paid upfront to reduce the overall financed amount on a purchase.

Act of accessing available funds from an approved credit facility.

Independent regulator for the DIFC with its own rulebook.

Major financial hub in Dubai with an independent legal framework.

A digital form of a paper check, debiting from the payer’s account electronically.

UAE rules ensuring entities demonstrate real economic activity locally.

Umbrella term for transferring money electronically between accounts.

Benchmark interest rate in UAE for interbank lending.

Digital methods of verifying identities for account opening and onboarding.

Incorporating financial services within non-financial business platforms.

Official ID in UAE used for bank account opening and identity verification.

A globally standardized integrated circuit on cards for authentication.

Extra scrutiny for higher-risk customers or large transactions.

A fixed monthly amount for loan repayment covering both principal and returns.

Ownership interest in a firm, typically held as shares.

A temporary holding account managed by a neutral third party.

Integrating environmental, social, and governance criteria in investment decisions.

Aligning investment with Islamic values, excluding prohibited industries.

A fund traded like a stock, often tracking a particular index or sector.

Export-Import bank supporting national trade with loans and guarantees.

Loans/guarantees assisting export or import transactions.

Government or private entity offering financing/insurance to exporters.

Private advisory entity managing wealth, investments, and finances for wealthy families.

Systems offering near-instant bank transfers in certain regions.

US law mandating foreign financial institutions to share info on US-linked accounts.

Religious ruling declaring a financial product permissible or otherwise.

Assessment of viability, costs, and benefits of a proposed project.

An individual/entity entrusted to act in the best interest of another.

The total cost of borrowing, encompassing interest and fees.

Global body setting AML/CFT standards and evaluating country compliance.

Designated UAE areas like DIFC or ADGM with their own legal frameworks.

Efforts ensuring all individuals and businesses have affordable financial access.

Ensuring underserved individuals gain banking access via digital platforms.

An independent entity resolving disputes between consumers and financial institutions.

ADGM’s regulatory body overseeing authorized firms and markets.

The overall resilience of the financial system to shocks.

Key reports (Balance Sheet, Income Statement, Cash Flow) on an entity’s finances.

Using technology to enhance or automate financial services in the UAE.

Governmental use of spending and taxation to influence the economy.

Instruments providing set periodic returns, like bonds or sukuk.

Calculated on the original principal throughout the loan term, common in UAE.

A lender’s legal process of taking possession of a property after default.

Trading currencies on global markets, critical for UAE businesses and individuals.

Selling medium/long-term receivables at a discount, often without recourse.

A bespoke agreement to buy or sell an asset at a future date/price.

Systems identifying suspicious or unauthorized transactions in real time.

Designated areas in UAE offering special business and tax advantages.

A business account opened for entities registered in UAE free zones.

Agreement to transact an asset at a predetermined price on a future date.

Using game-like features in apps to encourage better financial habits.

Network charge for processing transactions on certain blockchain platforms.

Prohibition of excessive ambiguity or deception in contracts.

A security issued by a government to finance operations or projects.

Extra time granted before penalties apply or repayments begin.

Funding for environmentally beneficial projects, aligned with sustainability goals.

Prioritizing stocks with strong potential earnings expansion.

Regional union of Gulf states collaborating on economic and financial policies.

Permissible vs. forbidden concepts in Islamic finance (and broader life).

Funds exclusively investing in Shariah-approved assets and industries.

An informal value transfer system regulated in UAE for AML compliance.

Traditional remittance based on trust, recognized but regulated for compliance.

An internal account used between a branch and its head office for funds.

Taking offsetting positions to reduce or manage financial risk.

An alternative investment fund using advanced strategies for returns.

Voluntary gift often used in Islamic deposits instead of guaranteed interest.

A standardized bank account number format used in UAE and globally.

UAE’s digital clearing system enabling faster processing of cheque images.

Crowdfunding method for crypto projects, selling tokens to early backers.

Globally applied accounting norms used by many UAE institutions.

Finance model where the bank buys an asset and leases it to the client.

International rules clarifying seller/buyer obligations in trade shipments.

Tracks a market index, offering broad-based exposure and lower costs.

General rise (inflation) or fall (deflation) in price levels, impacting economic policy.

When a private company first sells shares to the public market.

A part-payment at regular intervals to reduce a loan balance.

Technological innovations improving insurance services and processes.

A fee charged between banks for processing card payments.

A loan arrangement between different subsidiaries or branches under one group.

The cost paid by a borrower for the use of loaned funds.

A percentage rate applied to borrowed or deposited funds in financial services.

A limit placed on how high a variable interest rate can increase.

Parties exchange fixed and floating interest payments on a notional amount.

A financing arrangement where only interest is paid initially, principal later.

Global institution promoting financial stability and offering monetary cooperation.

Services that help raise capital and advise on mergers/acquisitions.

Selling or borrowing against receivables to manage cash flow.

Finance model adhering to Shariah principles, prohibiting interest and speculation.

Rules ensuring products comply with Shariah, overseen by dedicated boards.

Stock index tracking only Shariah-compliant firms.

Segment of a conventional bank offering Shariah-compliant products separately.

The financial institution that provides credit/debit cards to consumers.

Contract to fund goods/projects under construction, with payment over time.

General term for investment in compliance with Shariah rules.

An account shared by multiple holders for collective management.

Due diligence process verifying customers’ identities to prevent illicit use of banking.

A charge imposed for overdue payments on loans or credit cards.

A central bank’s role in offering emergency funds to banks facing crisis.

A non-binding statement from a parent firm or entity indicating support.

A bank document guaranteeing a seller’s payment upon meeting certain conditions.

Use of borrowed capital to amplify potential returns (or losses).

A historic global benchmark for interbank lending (being phased out).

The capacity to meet short-term obligations or convert assets into cash quickly.

Indicators of a firm’s ability to meet short-term obligations.

Compares a loan amount to the underlying asset’s value.

Traditional data strip on cards read by swiping devices.

The underlying objectives of Shariah law, emphasizing fairness and welfare.

Investors borrow funds from a broker to purchase securities, magnifying gains or losses.

The total market value of a company’s outstanding shares.

Different trade instructions for buying or selling securities in markets.

The date on which a time-bound deposit or investment becomes due.

Prohibition against games of chance, avoiding speculation in financial dealings.

A business bank account for accepting card payments from customers.

The percentage fee on each card transaction paid by the merchant.

Combining or purchasing companies, often facilitated by advisory banks.

Technology enabling automated cheque processing with specialized ink.

Small-scale financial services for low-income individuals or micro-enterprises.

Small-value transactions facilitated by reduced fees and digital platforms.

A banking requirement to keep an account above a set balance threshold.

Process of verifying crypto transactions and generating new coins via computation.

Financial services operated via mobile devices for sending and receiving funds.

App-based method of storing payment instruments for purchases.

Central bank actions controlling money supply and interest rates.

When one takes on more risk, expecting not to bear full consequences.

A property financing option secured against the real estate in the UAE.

Partnership where one provides capital and another management, sharing profit or loss.

Allows holding and transacting in various currencies through UAE banks.

Cost-plus sale arrangement used as an alternative to interest-based financing.

A general sale without disclosing cost price, contrasting with murabaha.

All partners invest capital and share profits/losses proportionally.

Joint ownership financing where the bank’s share reduces as the client pays.

A pooled investment vehicle, offering shares to investors for diversification.

An international exchange in the UAE listing regional and global securities.

All-digital banking platforms with no traditional branch presence.

Difference between interest earned on loans and interest paid on deposits.

A wireless tech enabling close-range data exchange, used in contactless systems.

A designated individual to receive or manage account assets under specific conditions.

Securities held by a custodian for the true owner, recorded as the nominee.

A loan or advance in default or close to being uncollectible.

A loan in serious arrears with slim chances of full repayment.

Mirror accounts banks hold with each other for cross-border transactions.

US agency enforcing economic sanctions against specific entities or nations.

Bank account opened in a jurisdiction outside the holder’s country of residence.

Financial services in a jurisdiction outside a company’s or individual’s home country.

Investing in assets outside the investor’s home country, often for diversification.

Sharing banking data with third parties via APIs under regulated frameworks.

Interfaces allowing third-party apps to integrate with bank data/services.

Central bank buying/selling securities to manage liquidity and interest rates.

Gives the holder the right (not obligation) to buy/sell an asset at a set price.

International body setting policies on economic, tax, and social issues.

A temporary code for verification, enhancing transaction security.

A facility allowing one to withdraw beyond the available account balance.

Interest rate swap exchanging fixed rate for an overnight floating benchmark.

Valuation measure dividing a stock’s price by its earnings per share.

A short-term, high-cost loan intended to cover expenses until next payday.

Online service that authorizes and processes digital transactions.

A break period allowing borrowers to pause or defer payments.

Intermediary handling card transaction data between merchants and banks.

Security benchmarks for entities handling branded credit/debit cards.

Platforms matching individual borrowers and lenders directly online.

Guarantees ensuring contract performance or valid bid commitment.

Tools or apps that help individuals track spending, budgets, and savings.

Funds offered by UAE banks for personal expenditures, typically unsecured.

A secure code verifying identity for card-based transactions.

The physical or virtual location where a sales transaction is finalized.

Constructing and supervising a mix of assets aligned with risk preferences.

A cheque dated for future encashment, commonly used in UAE credit transactions.

Card loaded with funds in advance; spending limited to available balance.

Paying off a loan before maturity and potential fees for doing so.

The original sum placed into a deposit instrument without added returns.

The original borrowed amount upon which any returns are calculated.

Capital invested in non-public companies, often for growth or restructuring.

Raising capital by selling securities directly to select investors.

Used instead of interest rate, reflecting agreed profit in Shariah contracts.

Long-term funding for major projects, relying on future cash flows for repayment.

Consensus mechanisms for validating transactions in blockchain networks.

Sectors applying fintech to property, wealth management, or payments.

Ratio of loan loss reserves to gross NPAs, indicating buffer against defaults.

Setting aside funds to cover potential loan defaults.

Oversight ensuring banks maintain safe operations (capital, liquidity, etc.).

Donating any impermissible earnings to charity, maintaining halal income.

Interest-free loan extended for welfare or hardship relief.

Scanning a code to initiate or accept digital payments, popular in retail.

A structured savings plan with regular deposits over a fixed duration.

Calculated on the outstanding principal, often considered more transparent.

Obtaining a new loan to replace an existing one, often for better terms.

Tech solutions helping financial institutions comply with regulations efficiently.

A controlled environment for testing new fintech products under supervision.

Funds sent by individuals to recipients in another country, common in UAE.

A document notifying a payee of funds transferred or upcoming payments.

Rate at which central banks lend short-term to commercial banks against securities.

Taking back collateral (e.g., vehicle) when the borrower fails to repay.

Mandated percentage of deposits that banks must hold as reserves.

Credit facility allowing repeated borrowing up to a set limit.

Charging or receiving interest, deemed forbidden in Islamic law.

Identifying and mitigating various banking risks (credit, market, operational).

An investor’s comfort level with market fluctuations and losses.

Adjusting loan rates based on the perceived risk of the borrower.

Bank assets weighted by risk to determine required capital reserves.

Automated platform offering algorithm-driven investment management services.

Bank codes used for domestic money transfers in certain countries.

A high-value funds transfer system settling payments in real time.

A secure physical storage rented in a bank for valuables.

Advance payment for goods delivered later, often in agricultural contexts.

Restrictions placed by governments on trade, financial dealings, or assets.

A deposit account often associated with earning returns in UAE banks.

Differentiates loans backed by collateral from those based on creditworthiness alone.

UAE regulator overseeing capital markets and related products.

A tradable financial asset (e.g., stock, bond, derivative).

An EU initiative standardizing electronic euro payments across member states.

Credit intermediation activities by non-bank entities outside typical regulations.

Islamic law guiding permissible financial transactions and moral conduct.

Panel of Islamic scholars validating Islamic banking products’ compliance.

Adherence to Islamic financial principles and avoidance of prohibited elements.

Group of scholars ensuring a bank’s compliance with Islamic principles.

A risk-adjusted return measure factoring in volatility and a risk-free rate.

Allows goods release without an original bill of lading, backed by the bank.

Selling borrowed securities aiming to buy them back later at a lower price.

Immediate payment LC vs. deferred payment LC, key in international trade.

Blockchain code executing agreements automatically when conditions are met.

A classification of businesses that are crucial to UAE’s economic growth.

Financing options designed for small to medium enterprises in the UAE.

A US-based risk-free rate replacing USD LIBOR for dollar-denominated loans.

A firm’s ability to fulfill long-term liabilities and maintain financial viability.

Selecting or excluding investments based on ethical or moral criteria.

A crypto asset pegged to a stable reference like the US dollar.

A secondary payment guarantee invoked if the buyer fails to fulfill obligations.

A pre-authorized order for recurring bank transactions.

Instruction to a bank to pay a fixed amount at regular intervals.

Mandated funds banks hold with central authorities, distinct from general reserves.

Sale of asset-backed tokens that meet securities regulations.

Represents ownership interest in a company, traded on exchanges.

A regulated marketplace for trading listed company shares and other securities.

An order preventing a bank from processing a specified cheque or payment.

Scenario analysis to gauge a bank’s resilience under adverse economic conditions.

Specialized financing covering tuition and related educational expenses.

Certificates representing partial ownership in tangible assets or projects.

Variations of sukuk structures tied to leasing, cost-plus sale, or partnership.

A platform offering multiple services (finance, shopping, etc.) in one ecosystem.

Technologies aiding regulators in monitoring compliance and market conduct.

A filing alerting authorities about potentially illicit financial activity.

Exchange of cash flows or financial instruments between two parties.

A global financial messaging platform facilitating secure international transfers.

An international identification code for banks, crucial in cross-border transfers.

Enhanced service offering faster, trackable cross-border payments.

A large financing arrangement shared by multiple lenders.

A firm whose collapse could threaten the entire financial system.

Short-term government debt instrument usually sold at a discount.

The principle of contributing funds for mutual support, key in Takaful.

Cooperative system of mutual protection, distributing risk among participants.

Commodity-based transaction to obtain cash in a Shariah-compliant manner.

Jurisdiction offering low or zero taxes for foreign investors.

The length or term associated with a deposit or financial instrument.

An account with locked funds for a set time, widely offered in UAE.

A loan with a specified repayment schedule over a set period.

Core equity capital that absorbs losses without a bank ceasing operations.

Replacing sensitive data with unique tokens to enhance security.

Financial instruments and products supporting import/export activities.

A portion of a larger financing deal, each with its own conditions.

Managing a company's liquidity, cash flows, and financial risks.

Account administered by a trustee for specified beneficiaries.

Document letting an importer take goods for resale while funds are owed to the bank.

Holds or administers property or assets for the benefit of a third party.

Security method requiring two distinct forms of identification.

Standardized base rate in UAE serving as a reference for lending products.

The UAE's national ATM network linking various bank ATMs nationwide.

The real individual who ultimately owns or controls an account or company.

ICC rules governing documentary credits (LCs) in international trade.

The evaluation process determining if and under what terms a loan is offered.

Charging exorbitant interest, restricted in conventional and Islamic frameworks.

Focusing on underpriced companies judged by fundamentals.

Funding targeted at early-stage startups with high growth potential.

An institution offering all services electronically without physical branches.

Digital-only card details for secure online transactions.

UAE mechanism ensuring timely salary transfer via banks or exchanges.

Principal-agent relationship in Islamic finance, delegating investment to an agent.

Digital store for crypto keys and the public identifier for receiving funds.

Integrated financial services supporting high-net-worth individuals’ goals.

Reporting of internal misconduct or illegal practices within an institution.

Direct electronic fund transfer between financial institutions.

Funds used for managing daily operating expenses and short-term debts.

Time it takes to convert net current assets and liabilities to cash flow.

Short-term loan covering day-to-day operational costs for a business.

International organization providing financial and technical assistance to nations.

The earnings generated from an investment, typically annualized.

Graph showing relationships between bond yields and maturities.

Mandatory almsgiving of specific assets, part of Islamic wealth obligations.