• Banking Terms – V

    Term

    Meaning

    VA Loan A loan guaranteed against default by the borrower by the U. S. Department of Veteran Affairs. VA loans require no down payment and are offered exclusively to United States military personnel who are active, discharged or retired.
    Value At Risk (VAR) The sum or portion of the value that is at stake of subject to loss from a variation in prevalent interest rates.
    Value Based Management (VBM) It is a structured approach to evaluate the performance of the company’s unit managers or goods and services, in terms of the aggregate gains they render to stockholders.
    Variable Life Insurance This type of insurance is very similar to whole life insurance, wherein the cash worth is invested in equity or debt sureties.
    Variable Rate Any interest rate or dividend that changes on a periodic basis is known as variable rate. Variable rates are often used for convertibles, mortgages, and certain other kinds of loans. The change is usually tied to movement of an outside indicator, such as the prime interest rate. Movement above or below certain levels is often prevented by a predetermined floor and ceiling for a given rate. It is also called adjustable rate.
    Variable Rate Mortgage This is just another term used for Adjustable Rate Mortgage (ARM).
    Variance Swap This relates to an OTC fiscal derivative which enables a person to speculate on or hedging jeopardies connected with unpredictability of some underlying product, such as an exchange rate, interest rate or stock index.
    VAT (Value Added Tax) VAT seeks to tax the value added at every stage of manufacturing and sale, with a provision of refunding the amount of VAT already paid at the earlier stages to avoid double taxation.
    Venture Capital Venture capital is a particular type of private equity capital designed for new businesses (business start-ups). Generally made as cash in exchange for shares in the investee company, venture capital investments are usually high risk, but offer the potential for above-average returns.
    Veterans Administration A federal government agency that, among other things, aids veterans of the U. S. armed forces in obtaining housing. VA loans offer a guarantee to the lending institution as to repayment of the loans and result in veteran home buyers being able to obtain mortgage loans with a lower down payment.
    Virtual Banking  Virtual banking is also called internet banking, through which financial and banking services are accessed via internet’s world wide web. It is called virtual banking because an internet bank has no boundaries of brick and mortar and it exists only on the internet.

     

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