Banking Organizations Key Terms

Bank on finance with banking organizations key terms

By Tara McClendon, Freelance Writer/Editor Tara McClendon

When it comes to banking organizations, there are two different categories. The first category involves banking organizations designed to act as resources for people in the finance industry. Most consumers work with the second category, which consists of banks, lending institutions and other financial organizations like credit unions. Each category has specific key terms that help you understand the role of the organizations in it. Whether you want to learn the difference between a financial association and an international banking organization or you want to know more about intermediaries of credit, key terms can help you out.

Financial associations

Financial associations bring members of the finance industry together and offer a variety of resources to those members. Aside from offering educational tools and resources for banking professionals, financial associations may also work as industry advocates in terms of government policies and issues.
Try: The Association of Finance Professionals is a global resource for individuals involved with the finance industry. It offers news, publications, discussions, forums, a membership directory and more.

International banking organizations

International banking organizations take an active role in global finance. The role they play may depend upon the members of the organization and their goals.
Try: The World Bank Group is a collection of 185 member countries. It has information on its role in global finance and also provides links with information for two of the main international banking organizations in its membership.

Intermediaries of credit

Banking organizations are sometimes known as intermediaries of credit because they issue loans to consumers. Only the banking organizations that fund loans and other types of credit opportunities fit the description for intermediaries of credit.
Try: The Federal Reserve maintains rules and regulations for intermediaries of credit. It releases the latest information pertaining to these organization at its website.

Banking councils

Banking councils, also known as councils for banking, oversee the business of specific banks. The job of the council is to act as an oversight committee for the bank to ensure the bank follows the policies, standards and regulations of the Federal Reserve. On an international level, banking councils play different roles depending on the country.
Try: The Federal Reserve Bank of Philadelphia explains the role of banking councils in U.S. banking organizations.

Bank relationship management tools

Bank relationship management tools help banks and financial institutions access services, analyze risk, control costs and quality and work with consumers.
Try: Chesapeake System Solutions is a provider of bank relationship management tools. It explains how its software can help banks improve efficiency.

Key rate services

The key rate is an international term used to define the standard off of which banks and other financial institutions set the interest when extending credit. In the U.S., banks use the prime rate as the key rate. Key rate services are ways to monitor the key rate and calculate the interest based on it.
Try: MarketWatch keeps tabs on the key rate for the U.S. and updates individuals in the finance industry on global key rate news.