Banking Glossaries-P

Passbook

A book in which all the transactions in a bank account are noted. This book may list the transaction codes and the customer's responsibilities.

Payee

The name of the person to whom the money in a cheque is to go.

Personal Consumption Spending

What households collectively spend on goods and services.

Personal Disposable Income

Personal income minus personal income tax payments. Also called "take-home pay."

Personal Identification Number (PIN)

A unique number or pass code entered by a customer when using an Automated Banking Machine (ABM) or Interac Direct Payment, that gives the customer access to his or her account.

Personal Savings

The difference between personal disposable income and personal consumption spending.

Personalized cheque

A cheque which has your name and account number printed on it.

Portfolio

A collection of investments.

Prime Rate/Prime Lending Rate

The rate of interest charged on loans by chartered banks to their most creditworthy customers.

Provision for Credit Losses

The amount deducted from income equal to the amount by which a bank adjusts its loan balances to reflect anticipated losses on them.

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