• Banking Terms – W

    Term Meaning
    W2 Statements A wage and tax statement used by the income tax system of United States to report wages paid to employees and the taxes withheld from them. Relevant amounts on Form W-2 are reported by the Social Security Administration to the Internal Revenue Service. Employers generally complete a Form W-2 for each employee to whom they pay a salary, wage, or other compensation.
    Waiver In banking terms, a waiver is relinquishing the rights. Sometimes also considered to be the exemption or settlement of a part of debt.
    Warehouse Lines of Credit Warehouse line of credit is a facility provided to the borrower to get a warehouse mortgage portfolio for future security.
    Warrant  An option for a longer period of time giving the buyer the right to buy a number of shares of common stock in company at a specified price for a specified period of time.
    When-Issued (WI) ‘When issued’ or WI is a conditional transaction made due to its authorized security or debt obligation.
    Whole Life Insurance A whole life insurance is a contract between the insurer and the policy owner, that the insurer will pay the sum of money on the occurrence of the event mentioned in the policy to the insured. It’s a concept wherein the insurer mitigates the loss caused to the insured on the basis of certain principles.
    Wholesale Banking Wholesale banking is a term used for banks which offer services to other corporate entities, large institutions and other financial institutions.
    Wholesale Price Index Wholesale Price Index is that index which is calculated on the basis of wholesale prices. It is calculated in a similar way to the Retail Price Index.
    Wire house A Particular company and its branches are connected to a communication system to share their financial information.  E.g. Bank
    Wire Transfer Wire transfer is types of payment methodologies through the transactions are made. It is a method of transferring money from one person to another person or bank or between banks electronically. In case of bank to bank transfer there is no cash transaction. At the EOD of the day Netting occurs between the banks. It is a very secure way of transfer. The payment is identified by the unique identification of the account holder. While transferring funds from savings account to checking account, ATM card transaction, Transaction made by swiping credit or debit card, wire transfer transaction is initiated between the customer’s account and retail banks account.
    Withdrawal A removal of funds from a savings or checking account by the accounts owner is known as withdrawal.
    Withdrawal Penalty A charge imposed upon an account holder for the early removal of funds from a certificate account, usually an amount equal to interest earned during a pre-specified period.
    Working Capital In banking terms, working capital is defined as the difference between current assets and current liabilities.
    Wraparound Mortgage An arrangement, wherein existing mortgage is refinanced with more money, with a rate of interest ranging between the old rates and current market rates.

     

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