Terms with Category Financial Banking

  • Canada Savings Bond (CSB) Bank, Canada,
    • A secure way for Canadians to save. The bonds, which are a form of debt issued by the Canadian government, are cashable, with proper identification, at any time at most Canadian financial institutions.
  • Canadian Bankers Association (CBA) Bank Est. 1891, Canada, Very Important,
    • Professional industry association that provides information, research, advocacy, education and operational support services primarily to the banking industry.
    One of Canada's oldest business associations.
  • Canadian Depository for Securities Limited Bank,
    • Agency responsible for the automatic processing and clearing of all securities transactions in Canada.
  • Canadian Payments Association (CPA) Bank, Canada,
    • This association, which is composed of several financial institutions and the Bank of Canada, operates a national clearing system for financial institution payments.
  • Cap Bank,
    • The top limit on the amount the interest rate can increase during a single time period of an adjustable-rate mortgage. Every ARM has two caps: a periodic cap, which limits the periodic changes to the interest allowed in the loan agreement, and a lifetime cap, which governs the total increase that can be imposed during the life of the loan.
    • A limit imposed on an item.
  • Capital Bank,
    • Money that is used to make money; for example, to buy rental property or a business.
  • Capital Adequacy Ratio Bank,
    • A ratio of total capital divided by risk-weighted assets and risk-weighted off-balance sheet items. A bank is expected to meet a minimum capital ratio of 8.0% unless a higher ratio is specifically prescribed by the Superintendent of Financial Institutions.
  • Capital Assets Bank,
    • Items that you own for investment or personal purposes, such as stocks, bonds or stamp collections. When you sell a capital asset, depending on the price you earn a capital gain or a capital loss. Gains are taxed at a special rate, and losses can be used in many cases to reduce the amount that is taxed. See also "Capital Gain" or "Capital Loss."
  • Capital Cost Allowance (CCA) Bank, Canada,
    • Capital Cost Allowance is a method of expensing depreciable assets as defined by the Canadian Income Tax Act (ITA).
  • Capital Expenditure Bank,
    • The cost of making an improvement to a property.
  • Capital Gain (CG) Bank, Important,
    • The profit made by the seller when real estate or other capital assets are sold. Capital gains are taxed more favourably than earned income. However, this can be dependent on your tax bracket and the length of time you owned the asset before it was sold. You could pay approximately one-third to one-half less tax than you would pay on the same amount of earned salary.
  • Capital Gain Distribution Bank,
    • When the fund sells some of its assets, you receive capital gain distributions or a portion from the sale. This distribution is regarded as a capital gain, not as ordinary dividends such as the interest gained from a bank account. It is important to separate capital gain distributions from ordinary dividends because capital gains are taxed more favourably.
  • Capital Gains Tax (CGT) Bank, Canada,
    • A tax on profits from the sale of real estate or investments.
  • Capital Improvement Bank,
    • Any permanent structure or other asset added to a property that adds to its value.
  • Capital Investments Bank,
    • Money used to purchase permanent fixed assets for a business, such as machinery, land or buildings as opposed to day-to-day operating expenses.
  • Capital Loss Bank,
    • When an asset is sold for less than what you paid, or less than its adjusted basis, it is a capital loss. However, when it comes to taxes a capital loss is not always bad because you can use it to reduce the amount of income being taxed by the amount of the loss, up to $3,000 per year. If your loss is more significant, the excess (or capital loss carryover) can be carried forward indefinitely until the total loss is used.
  • Capitalization Bank,
    • An estimate of the value of a rental or commercial property using the rate of return on investment and the property's annual net operating income.
  • Capitalization Rate Bank,
    • An estimated percentage rate of return that a property will produce on the owner's investment.
  • Captive Finance Company Bank,
    • A finance company related to a specific dealer or manufacturer.
  • Card Holder Agreement Bank,
    • A written agreement or contract between a credit card holder and the credit issuer that details the terms and conditions of a credit card account. This agreement must include the Annual Percentage Rate, the monthly minimum payment formula, the annual fee if applicable, and the cardholder's rights in billing disputes. Changes to the agreement can be made at any time by the issuer with prior written notice.
  • Carrying Costs Bank,
    • The cost of maintaining a property.
  • Cash Advance Fee Bank,
    • A fee charged by the bank for using credit cards to withdraw money generally from an ATM or banking machine. This fee can be a flat fee per transaction or a percentage of the amount being advanced. For example, the fee may be set as: "2% / $10." This means the cash advance fee will be the greater of 2% of the cash advance amount or $10. Banks often limit the fee to a certain dollar amount.
  • Cash Cards Bank,
    • Cash cards, similar to pre-paid phone cards, contain a set amount of value, which can be read by a special cash card reader. Participating retailers will use the reader to debit the card in increments until the value is gone. The cards are like cash -- they have no built-in security, so if lost or stolen, they can be used by anyone.
  • Cash Collateral Bank,
    • The proceeds of cash collected from the sale of liquid assets while in bankruptcy.
  • Cash Flow Bank,
    • The money an investment produces after subtracting cash expenses from income.
  • Cash Flow Forecast Bank,
    • An estimate of when and how much money will be received and paid out of a business. It usually records cash flow on a month-by-month basis for a period of two years.
  • Cash Method Bank,
    • The form of accounting in which you report income in the actual year you receive it and deduct expenses in the year you pay. Most individuals use this method. Under this system, if you built a deck and billed the client in December 1999 but didn't receive the cheque until January 2000, it would be counted as 2000 income, not 1999.
  • Cash Surrender Value (CSV) Bank, Important,
    • The liquid value of an insurance policy if the policyholder voluntarily cancels the policy before maturity or an insured event.
  • Casualty and Theft Loss Bank,
    • A loss caused by a hurricane, earthquake, fire, flood, theft or similar event that is sudden, unexpected or unusual. You can deduct a portion of personal casualty or theft losses as an itemized deduction.
  • Central Bank Bank,
    • An institution that manages a nation's monetary policy.
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