What Are Some Standard Banking Abbreviations?


Quick Answer

Banking term abbreviations and acronyms include "ALM" for asset/liability management, "GO" for general obligation, "P&I" for principle and interest, "WAC" for weighted-average coupon and "Forex" for the foreign exchange of one currency for another. "The FED" commonly refers to the Federal Reserve Bank, which is the United States' central bank, and an "MMDA" is a money market deposit account. In banking parlance, the Federal National Mortgage Association is "Fannie Mae" and the Government National Mortgage Association is "Ginnie Mae."

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Full Answer

A "CAB" in the banking world is a capital appreciation bond, while the acronym "CARS" refers to certificates of automobile receivables, which are a type of asset-backed security, and "CATS" stands for a certificate of accrual on treasury securities. "VAR" refers to value at risk, which is the amount or percentage of value that may be lost if interest rates change, and "VBM" refers to value-based management. Value-based management is measuring the performance of a product in terms of the net benefit realized by shareholders. Earnings at risk translate into "EAR" in the banking world, and "EBIT" and "ECOA" refer to earnings before income taxes and the Equal Credit Opportunity Act, respectively.

"T-Bill" is an abbreviation for U.S. Treasury Bills, which are securities of less than 180 days. Other common banking abbreviations are "refi," which refers to refinancing an existing loan, and "repo," which refers to repossessing a vehicle when a loan is not repaid.

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