Saturday, December 31, 2011

22. (V) Basic Banking Guide A to Z

V

Vacant possession
Property not occupied, or with no tenant in possession.

Valid
An agreement, document authorized by law or otherwise having legal effect or force.

Validate
To make any document, instrument, legally effective. In banking a cheque becomes state after six months of its issuance, after that it requires validation.

Validity
The period for which an agreement, negotiable instrument, bid, offer ,claim, document, letter of credit, guarantee etc remains in force.

Value
It refers to the monetary worth of an asset, business entity, goods sold or service rendered, or liability or obligation acquired.

Value added cost
It refers to the resources consumed in enhancing the value of a goods or services.

Value added tax (VAT)
This is a consumption tax which is levied at each stage of production based on the value added to the product at that stage.

Value date
The date on which an account holder can use the funds from deposited cheques that have passed through the bank's clearing cycle, the date on which a deposit starts to earn profit.

Variable cost
This is the cost which varies, more or less, with the increase/ decrease in production or the sales revenue of a company, e.g.  raw material, energy usage, labor (wages), distribution costs, etc.

Variable rate
Any interest/ profit  rate or dividend that changes on a periodic basis.

Variance
Difference between an expected and actual result, such as between a budget and actual expenditure.

Vault
An area, in a bank or  financial institution, which is a safe and secure place for storing items of value. Bank vaults must meet a series of safety regulations, required under their own policy as well as regulators. Vaults are generally used to keep cash, as well as customers' safe deposit lockers.

Vendor
This refers to the manufacturer, producer, or seller who are in the approved list of a company to provide certain items.

Vested
This refers to any thing guaranteed as a benefit, privilege, or right, immediately or in future.

Vested interest
It refers to the personal stake, or expectation of personal gain, that underlies a strong commitment to maintain or influence an action

Veterinary certificate
A certificate issued by competent authority, which is required to indicate that livestock is free from specified diseases

Viable
This refer to any thing according to the requirement, or practical, For example, a company is looking for a substitute of a manufacturing item, it will consider viable alternative that would provide a similar benefit at a reasonable cost.

Visa
This is a certificate issued or a stamp marked on the applicant's passport by the immigration authorities of a country to indicate that the applicant's credentials have been verified and he or she has been granted permission to enter the country for a temporary stay within a specified period. This permission, however, is provisional and subject to the approval of the immigration officer at the entry point

Void
Agreement which is absolutely null, without legal force and legal effect, such as an agreement for an immoral consideration.

Voidable
This is the agreement which is capable of being set aside by a court or rescinded at the option of one of the involved parties. For example agreement caused by coercion, undue influence, misrepresentation

Vostro accounts
This is a local currency account maintained by a local bank for a foreign (correspondent) bank. For the foreign bank it is a nostro account.

Voucher
This is a written instrument that confirm for some fact such as a transaction. It indicates that goods have been bought or services have been rendered, authorizes payment, and indicates the ledger account(s) in which these transactions have to be recorded.

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