• Banking Terms – G

    Term

    Meaning

    Garnishee Order A court order instructing a garnishee (a bank) that funds held on behalf of a debtor (the judgment debtor) should not be released until directed by the court. The order may also instruct the bank to pay a given sum to the judgment creditor (the person to whom a debt is owed by the judgment debtor) from these funds.
    Garnishment A court-ordered process that takes property from a person to satisfy a debt. For example, a person who owes money to a creditor may have her wages garnished if she loses a lawsuit filed by the creditor. Up to 25% of a person’s wages can be deducted.
    General Ledger General Ledger is the Repository of bank which tells the Asset details, liability details. This information should be update frequently.
    General Lien A right of the creditors to retain possession of all goods given in security to him by the debtor for any outstanding debt.
    General property Taxes Taxes levied on real estate and properties.
    Generic Regulations A generic regulation can span the entire industry and can be applicable to a number of industries at the same time. An example of the generic act is the USA Patriot Act 2001.
    Giffin Goods Giffin goods have the positive relationship between price and quantity demanded and as a result demand curve of Giffin goods slopes upward. This phenomenon was first observed by Sir Robert Giffin in relation to the demand for bread by poor labours.
    Global Depository Receipts Global Depository Receipts (GDRs) are the receipts evidencing underlying shares, which are issued simultaneously in more than one country.
    Global Restructuring Group (GRG) Global Restructuring Group which manages to rejuvenate customers by restructuring the business process.
    Government Bonds A government bond or government security is issued by the government which is considered to be almost risk free. Banks need to invest some part of their capital in government bonds.
    Grace period The time between use of credit to make purchase and the starting of interest of the amount charged.
    Graduated Payment Mortgage (GPM) A mortgage loan which provides for initial lower monthly payments, with payment amounts increasing gradually over a period, usually up to 10 years, under the assumption that the borrower’s income will also rise during the period.
    Grant A grant is any type of financial aid that is given by the government.
    Gross Dividends Gross dividends are basically the total amount of dividends that are earned by an individual, or corporation in a particular year.
    Gross Domestic Product (GDP) GDP or Gross Domestic Product denotes the market value of all the goods and services produced within a country or a specific region for a given period of time. The goods include the manufactured products, agricultural products and all types of natural resources. The region can be a part of a country or a combination of multiple countries.
    Gross Income Pre-tax net sales minus cost of sales. It is also called gross profit.
    Gross National Product (GNP) GNP of a country is the total value of all the goods and services produced by enterprises or companies owned by that country’s citizens. Here the goods and services produced by some enterprise or firms located outside the country but owned by the country’s citizens will be included while calculating the GNP.
    Ground Rent Ground rent is the amount of rent that a leaseholder pays periodically to the owner for using a property
    Guaranteed Fees It’s a guarantee fees charged by bank. Bank will take particular amount from the principal as a guarantee fees. If the customer can’t pay back the money, the guarantee fees will reduce the risk.
    Guarantor A person who gives guarantees to the bank on behalf of the borrower that in case the borrower fails to repay, he/she will repay when the bank makes demand for repayment. The guarantor signs a Guarantee in favor of the bank to this effect.
    Gun Jumping/ Jumping the Gun Trading on information that is yet to be made conspicuous to the general public. It is illegal as this means buying a new security before registration is done by the primary regulatory agency for securities industry – Securities and Exchange Board of India (SEBI) for India.

     

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