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Safe deposit vault
A type of small boxes usually located inside a bank vault (locker room) and rented to customers for their use in storing valuable items.
Safe custody
Article of value deposited in bank for safe keeping, bank can not exercise right of lien on the items deposited for safe custody, except recovery of charges.
Safekeeping
A service provided by banks where securities and valuables are protected in the vaults of the bank for customers.
Safe deposit locker
These are storage containers maintained in the vault area of a bank and rented to bank customers for safekeeping of valuables. These boxes are covered by the insurance policy where risk is covered according to the size of locker, provided customer is agreed to pay the premium. Access to individual locker is through two different keys, one kept by the customer, the other by the bank as master key which is common for all lockers.
Salvage
It refers to the value of a property that has value in excess of its value as a scrap.
Same day clearing
NIFT is providing special clearing facility for the branches situated within five miles radius of clearing house. Cheques of Rs 500(K) and above in Karachi & Lahore & Rs 200 (K) & above in other cities received up to cut time in the morning are eligible to be lodged in same day clearing against charges. The proceeds of these cheque are credited in customers account by 3 PM.
Sample
Item given or sold to a buyer that represents all such items pertaining to a deal, or transaction. A sample establishes a standard of quality by which the rest of the items are judged.
Sanction
In banking it refers to the formal approval or authorization.
Satisfaction of mortgage
A document issued by a mortgagee (the lender) when a mortgage is paid in full.
saving account
It is an account from where withdrawals can be made, (2) profit accrues on the account balance, (3) does not have any maturity date, and (4) zakat is deducted as per law if zakat declaration is not submitted.
saving certificate
Refer national saving schemes
schedule of bank charges (SOC)
It is a small document issued by the banks on six monthly bases wherein product wise charges of all domestic and international banking are given. As per SBP instructions banks are required to display a copy of the same on notice board.
Seal
It is a metal stamp that makes it impossible to remove (raised) impression on paper, lead, or sealing wax and is used as a security device and as a mark of authenticity on legal documents.
Search certificate
It is a certificate issued by the registrar for verifying clear title of the property offered by the mortgager to the banker/ lender. the certificate indicates existing charges over the property offered
Secondary market
A market on which an investor purchases an asset from another investor rather than an issuing corporation. All stock exchanges are part of the secondary market, as investors buy securities from other investors instead of an issuing company.
Second mortgage
Loan secured by the property that is already mortgaged. Second mortgages are subordinate / secondary to the first mortgage and, in case of a foreclosure sale, the bank holding second mortgage shall be paid out only after the full satisfaction of the first mortgage.
Secrecy
This is One of the conditions of the relationship between a bank and its customers that the customers' dealings and financial affairs will be treated as confidential. This rule, however, does not apply to the customers' credit information which is shared among banks. Due to certain laws of Pakistan such as anti-terrorist and anti drug-trade and tax evasion, banks must release specific information to help government to fight terrorism and illegal trade, and prevent tax-evasion and money laundering.
Secured creditor
Banks who holds legally enforceable claim on a borrower's asset(s). Secured creditors are entitled to receive the proceeds of the foreclosure sale of the pledged asset(s) and, in case of a bankruptcy, must be satisfied before the unsecured creditor(s).
Secured debenture
These debentures are secured by a specific asset of the issuing company.
Securities
These are investment instruments bought and sold in financial markets, such as bonds, debentures, notes, shares and warrants.
Security & Exchange commission of Pakistan (SECP)
This is a government agency whose purpose is to develop a modern and efficient corporate sector and a capital based on sound regulatory principles, in order to foster economic growth and prosperity in Pakistan. It is an attached department of Ministry of Finance
Sellers market
This is a situation where demand is high in comparison to the supply, therefore sellers can dictate prices to take full advantage of the market conditions. This is just opposite of buyers' market.
Services
Intangible products that are not goods tangible products, such as accounting, banking, cleaning, consultancy, education, insurance, medical treatment, transportation. No transfer of possession or ownership takes place when services are sold, and they (a) cannot be stored or transported, (b) are instantly perishable, and (c) come into existence at the time they are bought and consumed.
Service charge
A charge assessed by a bank or DFI for processing transactions and maintaining accounts.
Settlement day
A specified day(generally falls after two weeks) in the stock exchange on which accounts of previous accounting periods are settled.
Several liability
This is a liability which is separate from the liability of others. In case of a dispute, a plaintiff may start legal proceeding only against a particular defendant, without involving other party or parties.
Shadow cost
This is the cost / price that bank management is willing to pay for utilizing surplus resources of a branch. This is the Contribution that could be earned by the branch. This amount so paid is called shadow cost. A shadow cost is, in a way, an opportunity cost which is paid to the branches having surplus funds and recovered from branches who utilized these surplus funds.
Share
This is an evidence of ownership that represents an equal proportion of a company's capital. It entitles its shareholder to an equal claim on the company's profits and an equal obligation for the company's debts and losses.
Share capital
This is invested money that is not repaid to the investors in the normal course of business. It represents paid up capital generated through purchase of the company's ordinary shares. Its value is computed by estimating the current market value of everything owned by the company from which the total of all liabilities is subtracted. This is also called equity financing .
Share certificate
This is a legal document issued as proof of ownership in a company. In the modern stock markets, the 'paper' share is now being replaced by the 'electronic' share.
Shareholder
These are Individuals, group, or organization that holds one or more shares in a company, and in whose name the share certificate is issued.
Share premium
This represents excess amount received by a company over the par value of its shares. This amount forms a part of the reserves which usually can be used only for purposes specified under corporate legislation.
Shipment
This represents cargo transported under the terms of a single bill of lading or air waybill, irrespective of the quantity or number of containers, packages, or pieces. This is also called consignment.
Shipped bill of lading
This is a B/L which certifies that the specified goods have been received in apparent good order and condition from the named shipper /consignor, and have been taken on board in the named ship on the stated date.
Shipping agency
This is a company who arranges shipment of goods, and guide about whole process of shipment such as how a customer can ship his/her excess baggage quickly and at the lowest price to chosen destination against payment of nominal fee
Short term asset
In general, it refers to an asset whose lifespan is estimated five years or less.
Short form bill of lading
This is a B/L which is without the terms and conditions of carriage printed on its back. Otherwise, in size, it is not different from the long form B/L. The shipper and the carrier are bound by the conditions of carriage whether printed on the B/L or not.
Short position
It refers to a situation were projected outflows of a currency exceed its projected inflows.
Short selling
This refers to “bear” tendency where, profiting is made from an anticipated drop in the price of a commodity, financial instrument, or shares / securities. The seller counts on buying the item at a cheaper price to return or deliver it with a higher price.
Short term investment
Investment that matures in, or is held for, 12 months or less.
Short term liabilities
It refers to the liabilities which are required to be repaid between one to five years.
Short term policy
Insurance policy which covers risk of short period.
Sight bill
Bill of exchange payable on the day it is presented to the drawee. Also called at sight or sight draft.
Sight credit
It is a type of letter of credit whose payment becomes due on the day its documents are lodged by the L/C opening bank. Also called at sight L/C
Sight deposit
Alternate term of demand deposit.
Signature card
A card signed by each depositor and customer of a bank which may be used as a means of identification. The signature card represents a contract between the bank and the depositor.
Single entry accounting
An accounting method in which transactions are recorded as a single entry, rather than as both a debit and a credit as in double-entry bookkeeping. When using single entry bookkeeping, taxable income is just the difference between cash expenses and cash receipts over the relevant time period.
Sinking funds
Reserved created by periodically setting aside certain sums in a special account for future replacement of an asset or repayment of a liability.
Sleeping partner
It is a partner who shares risks and rewards of an enterprise are with other partners, but does not take part in its day-to-day management. He is also called silent partner.
Slump
Please refer depression
Society for worldwide interbank telecommunication (SWIFT)
Society for Worldwide Interbank Financial Telecommunications. it is a global communication network that facilitates 24-hour secure international exchange of payment instructions between banks, central banks, multinational corporations, and major securities firms. A member owned cooperative organized in 1977 under Belgium law, it now includes over 6,500 participating members from more than 180 countries which together process in excess of 300 million messages every day.
Soft currency
It refers to the currency belonging to small, weak, or wildly fluctuating economies which are not attractive for foreign exchange dealing.
Software
It consists of carefully-organized instructions and codes, that programmers write in a language that hardware can understand and act upon. Software is divided commonly into two main categories: (1) System software. (2) Application software
Sole proprietorship
It is the simplest, oldest, and most common form of business ownership in which only one individual acquires all the benefits and risks of running an enterprise.
Sorting (cash)
Separation of currency notes into issuable and not issuable portion. As per SBP cash monitoring policy only issuable notes can be pushed back for circulation. Non issuable notes are those which are very old, soiled or torn.
Special crossing
When a cheque bears across its face an addition of the name of the bank, either with or without two parallel lines is called special crossing. Where a cheque is crossed specially, the banker on whom it is drawn shall pay it to the banker to whom it is crossed or his agent for collection
Special drawing rights
SDRs are allocated by the IMF to its member countries and are backed by the full faith and credit of the member countries' governments
Special Indorsement
Endorsement that names the endorsee to whose order a negotiable instrument is payable. For example "Pay to the order of ABC & company."
Special resolution
It is a resolution which is adopted for some very important decision such as for altering the terms of the articles of association or the memorandum of association, or making some other major or fundamental changes in an organization of the company. A special resolution requires (1) 21 days notice to the members, share holders of the intention to propose the resolution, (2) not less than three-fourth of the votes of the members present in person or by proxy for approval, and (3) to be filed with the competent authority (such as the registrar of companies in Pakistan), within 15 days of being approved.
Specific reserve
This reserve is created for settlement of definite liability, such as tax, dividend etc
Speculation
This is calculated assumption of above average short-term risk of financial loss, in expectation of above average gain from an anticipated change in prices.
Spot price
This refers to the cash price of goods traded on a spot market and available for almost immediate delivery.
Spot rate
This is foreign exchange market price at which a currency will be delivered on the spot date. Spot rate is the starting point for all foreign exchange transactions.
Spread
This is the difference between the buying and selling price of the same commodity.
Stale cheque
A cheque is said be stale when it has not been presented by the payee within the stipulated time set aside by the financial institution. The period are usually 6- 12months of issue. But it all depends on the country. in Pakistan period is six months, after this period cheque require revalidation.
Standards and poor
Standard & Poor's is the world's leading provider of independent credit ratings. They provide risk evaluation, investment research, and data. They supply investors with the independent benchmarks they need to feel more confident about their investment and financial decisions.
Standby letter of credit
Standby letter of credit is basically a guarantee of payment, which is used as a substitute for the commonly used performance bonds. This type of letter of credit may be issued to cover non-trade transactions and to guarantee performance of a contractor as supplier. It is a guarantee of payment issued by a bank on behalf of a client, that is used as "payment of last resort" if the client fail to fulfill a contractual commitment.
Standing instructions
This is a type of pre-authorized payment under which an account holder authorizes a bank to pay a fixed amount such as mortgage payment or rent or variable amounts such as those called for in bills or invoices, directly to a landlord, bank, supplier or utility company at regular intervals.
Standing order
Refer standing instructions.
State bank
A bank that is organized under the laws of a State and chartered by that State to conduct the business of banking.
State bank of Pakistan
Before 14 August 1947, the Reserve Bank of India was the central bank for un-divided India. On 30 December 1948 the British Government's commission distributed the Bank of India's reserves between Pakistan and India with ratio of 30 percent for Pakistan and 70 percent for India. In May, 1948 Government of Pakistan took steps to establish the State Bank of Pakistan and as such it commenced operation on July 1, 1948. State Bank of Pakistan operates as the Central Bank of Pakistan under the State Bank of Pakistan Act 1956.
Statement of Account
This is summary of all transactions with a customer or a supplier that occurred over the previous month, quarter, etc., and their effect on an open-account balance.
Statement of affairs
It refers to the written record in the form of an statement regarding, the current condition, position, or status of a branch, area, region or bank as a whole. It contains balances of all General ledgers (GL) including contra items. The sum total of both debit and credit side should be equal.
Statistic
This is a branch of mathematics, which is concerned with collection, classification, analysis, and interpretation of numerical facts, for drawing inferences on the basis of their quantifiable likelihood (probability). It is subdivided into descriptive statistics and inferential statistics.
Statutory obligation
Obligation that does not arise from a contractual relationship but is created under the law of the land.
Statutory requirement
Legally mandated requirement that must be complied with by the party to which it applies such as approval, license, permit, etc., required for performing certain activity
Sterling
Short name for the UK currency Pound Sterling (£) as distinct from other currencies named 'pound.'
Stipend
A source of funds that is provided to an individual, such as through a scholarship, which allows the individual to pursue a particular interest, such as an internship.
Stock
It represents proportional part of a company's equity as capital raised by fully paid up shares.
Stock broker
This is a person who serves as an agent or intermediary in commercial negotiations or transactions in stock exchange. They are licensed professionals in their fields. Their rate of compensation called brokerage is determined generally, higher the value, lower the percentage.
Stock exchange
This is an organized and regulated financial market where securities bonds and shares are bought and sold at prices governed by the forces of demand and supply. Stock exchanges basically serve as (1) primary markets where corporations, governments, and other incorporated bodies can raise capital by channeling savings of the investors into productive ventures; and (2) secondary markets where investors can sell their securities to other investors for cash, thus reducing the risk of investment and maintaining liquidity in the system.
Stock in trade
This is the value of materials and goods held by a company/ firm for sale or customer service such as merchandise, finished goods. It is often the largest item in the current assets category, and must be accurately counted and valued at the end of each accounting period to determine a company's profit or loss.
Stock taking
It refers to the physical verification of the quantities and condition of items held in an inventory.
Stop payment instructions
This is a notice by an accountholder to a bank not to honor a specified cheque drawn on his or her account balance. Banks require a written instruction following an verbal request and, in case of a cashier cheque , pay order or a demand draft, bank require a clearance from beneficiary.
Straight bill of lading
This is a B/L used where the goods have been paid for or do not require payment. Under this B/L, the shipping company delivers the shipment to its consignee on presentation of identification.
Straight line method of depreciation
This is the method of computing depreciation in which the depreciable cost of a tangible asset is reduced by an equal amount in each accounting period over the asset's estimated useful life.
Student loan:
Loans made, insured, or guaranteed under any program authorized by the regulators or any other competent authority authorized by the govt. Loan funds are used by the borrower for education purposes.
Sub branch
A sub branch is a conduit of a branch to which it is affiliated. Banks can not convert an existing branch into a sub branch. However a booth can be converted into a sub branch, a sub branch into a full branch under their ABEP after approval from SBP.A sub branch is not empowered to open an account including allotment of account number. Completion of Know Your Customers (KYC) and exercise of due diligence, before account opening, is also to be performed by the controlling branch.
Sublease
Lease from one lessee to another is called sub-lessee. The agreement between the allotment authority (the Lessor) and the first lessee remains in force and governs the terms of the sublease. A sub lease can be registrar.
Subordinated debt
Subordinated debt generally refers to debt that has a secondary or lesser claim priority to the issuer's assets than more senior debt, in case the issuer default on its obligations. There are also levels of subordinated debt, with senior subordinated debt having a higher claim to repayment than junior subordinated debt.
Subscribed capital
It refers to the individual subscribed share value and liability of the total share capital of a company.
Subsidiary company
This is a company whose controlling interest is owned by another company.
Subsidy
This is a grant made by a government to some individual or business or on certain goods in order to maintain an acceptable standard of living or to encourage economic growth.
Summon
This refers to the call to appear at a specified place, esp. before a court.
Sum payable
This is the amount that a borrower, debtor or purchaser must pay to satisfy an obligation.
Sundry creditors
This is an account where miscellaneous small receipts are credited. In other words this is an account where individual receipts are not assigned individual ledger accounts but are classified as a group. Bank must maintain entry wise record of this account.
Sundry debtors
This is similar to the sundry creditors bur in this accounts debits transactions are recorded
Superannuation
This refers to the age of retirement. Companies make retirement plans for the benefit of its employees. These types of plans use funds deposited by the company or by the employee or by both with the purpose that funds will grow in value until the employee retires.
Suppliers credit
This refers to the goods or services received on deferred payment terms.
Surcharge
It refers to the amount added on to a usual charge for a specific product, purpose, or service .
Surety
This is a person or company (such as a bank) that agrees to be primarily liable for the conduct, obligation, or performance of another.
Surety bond
This is a formal, contract between a first party (the principal debtor), a second party (the customer creditor), and a third party (the surety, such as a bank) where the surety guarantees payment of a specified maximum amount, the against damage or loss caused by the actions or a failure to perform of the creditor. Generally surety bond is issued for a specified period
Surplus
It refers to the leftovers of an appropriation account after all expenditures.
Surrender
It refers to voluntary giving up of a legal claim, interest, or right.
Surrender value
This is the amount which the holder of a life insurance policy is entitled to receive, on its surrender/ cancellation before the death of the insured or before the policy matures. This sum is based on the insurance premium paid up to the surrender date less surrender fee. It may be used as a collateral for borrowing from the insurance company or from a bank.
Suspense account
This is a temporary parking account created to record, disbursements related with unconcluded transactions until their ending, or discrepancies between totals of other accounts until their rectification or correct classification. This is also called other Assets account. According to the PR O-3 all entries parked in suspense accounts must be settled within 30 days from the date of origination.
Swap
It refers to exchange of one type of asset, for another. Common types of swap include,(a) Currency swap, simultaneous buying and selling of a currency. (b) Debt swap, exchange of a loan between banks. (c). Debt to debt swap, exchange of an existing liability into a new loan, usually with an extended payback period.
Switching
It refers to the moving of money from one mutual fund to another or fron one investment scheme to another.
Syndicate
This is a temporary association of two or more banks to finance some specific venture or project such as large scale real estate development or large scale project. The purpose of syndication is to share the risk involved.
System analyses
It refers to the use of investigational approach in understanding the behavior of a business, product, economy, market, or even an event where mathematical analysis techniques are inadequate or unfeasible
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