Banking Glossaries-I

Imports

Goods and services produced in other countries and sold in Canada.

Income Statement

Also known as the profit & loss statement or P&L, enables you to calculate your company's pretax profits by subtracting total expenses from total revenues.

Income-splitting

A financial strategy for tax purposes. Splitting income refers to the process of shifting income from the hands of one family member to another, who is in a lower tax bracket and will therefore pay tax at a lower rate. This helps reduce your family's overall tax burden.

Inflation

A rise in the average level of prices in the economy.

Institute of Canadian Bankers (ICB)

Educational institute that provides career-oriented education and training programs to financial-services professionals.

Interac

Canada's largest shared network of ABMs. It allows cardholders to access their accounts from any ABM on the network regardless of which financial institution owns the machine.

Interac Direct Payment

A method of paying for goods and services electronically with the funds taken immediately and directly from your bank account and transferred directly into the merchant's account. You use your debit card to do this.

Interest

The amount paid or earned for the use of money.

Interest rate

The percentage used to calculate the interest to be paid.

International Banking

The area of banking business that includes the operation of bank branches and subsidiaries located outside Canada, the supervision of correspondent banking relationships, foreign exchange trading and trade finance.

International Chamber of Commerce (ICC)

A world business organization that brings business people and experts together to formulate policies in such areas as banking, taxation and the environment.

International Organization for Standardization (ISO)

An international organization created to promote standardization around the world.

Inventory

Stock on hand in the form of goods ready for sale. Also includes raw material in the process of being manufactured or completed for sale.

Investment

Something you put your money into in order to make money.

Investment Banking

Bank operations that manage a bank's funding position, as well as its holdings of Treasury bills, bonds and preferred and common stock.

Investment Income

This is income earned on investments you make. Investment income includes interest, dividends and capital gains.

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