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Earmark

To set aside for a specific purpose, use, to earmark for adjustment of certain liability.

Earning 

To yield as return or profit e.g. a savings account that earns profit on deposited funds.

ECU

European currency unit. Unit of money of the European Common Market used in international finance, based on the combined prorated values of the currencies of member nations.

Effective date 

Date on which a transaction is recorded in the books / system or date when an agreement takes effect.

Effect not cleared

Cheques pay orders or  drafts that have been deposited by a customer but have not completed the banks clearing cycle and  the proceeds are expected to be  credited  in the customers account. 

Elective Resolution

This is a resolution that requires the unanimous agreement of the shareholders of a company. Elective resolutions are moved usually at annual general meetings (AGM).

Electronic banking

Use of PC to avail facility of banking services through a wide area network or internet without physically visiting bank premises.

Electronic credit investigation bureau (eCIB)

The Electronic Credit Information Bureau (CIB) was established by State Bank of Pakistan (SBP) in December, 1992. Under the (BCO) 1962 Section 25(A) SBP can call credit information and make such information available to any bank or financial institution. The membership with CIB, , is mandatory for all Banks, Developmental Financial Institutions (DFIs) and Micro Finance Banks (MFBs) All member are required to submit entire borrowers’ records online to CIB on monthly basis, within a period of fortnight from the date of close of month. All individuals and sole proprietors are placed under the category of “Consumer Borrower Partnership concerns and corporate entities (both listed and unlisted) are categorized under “Corporate Borrower”.

Electronic funds transfer (EFT)

The transfer of money between accounts by consumer electronic systems-such as automated teller machines (ATMs) and electronic payment of bills-rather than by cheque or cash. 

Embezzlement

Misuse, or theft of funds by some banks official who is entrusted with those funds. 

Emoluments

Salary or Fees received as compensation for being employed or holding an office. This includes fringe benefits.

Encoding

To convert a message or information, etc. into codes. In banking it refers to magnetic  ink  character recognition (MICR) coding on cheques etc. required for auto processing clearing items.

Endorsement

A banking term that refers to the signing of a cheque etc which allows for the legal transfer of a negotiable instrument from one party to another. This also refers to the signature, placed on the reverse of a negotiable instrument, for the purpose of informing paying banker that who is receiving payment. 

Enhance due diligence (EDD)

It refers to the extra precautions in exercising customers due diligence. It is done, in case of dealing high risk persons, such as politically exposed persons (PEP), exchange companies, trust & societies accounts etc.

Entity

It refers to an individual proprietorship, partnership, organization, or business unit which has a legal existence, for which accounting records are kept.

EOBI

Employees Old Age Benefits Institution (EOBI) was founded under an Act in1976 with the purpose to achieve the objective of Article 38 (C) of the Constitution of Pakistan. this  is an autonomous organization under the Labour Division, Government of Pakistan. EOBI’s functions include identification and registration of commercial and non-commercial organizations and their employees in the private sector and collection of contributions from them with a view to provide post-retirement old age benefits and other related social security payments.

Equitable charge

Charge equal to the owner. It  does not pass on the ownership or possession to the banker, but gives  right to start process for recovery of financing provided in case of non-payment.

Equitable interest

Right in a property that equivalent to a real right but is not a legal right, not enforceable by being in conformity with the law.

Equitable mortgage

Where a person delivers to a creditor, bank or financial institution or their agent documents of title to immovable property, with the purpose to create a security thereon, the transaction is called a mortgage by deposit of title deeds or equitable mortgage. At though it does not fulfill requirements of a legal mortgage but It gives the mortgagee the right to foreclose on the property, sell it, or appoint a receiver in case of non payment

Equity

Equity represents funds contributed by the owners /share holders plus reserves/retained earnings minus the accumulated losses if any.  

Equity of the bank

This includes paid-up capital, general reserves, balance in share premium account, reserve for issue of bonus shares and retained earnings / accumulated losses as disclosed in latest annual audited financial statements. In case of branches of foreign banks operating in Pakistan, equity will mean capital maintained, free of losses and provisions, under Section 13 of the Banking Companies ordinance 1962

Equity of the Borrower 

Includes paid-up capital, general reserves, balance in share premium account, reserve for issue of bonus shares and retained earnings / accumulated losses, revaluation reserves on account of fixed assets certain types f preference shares, and subordinated loans.

Error of omission 

Unintentional error, unintentional omission resulting in something not properly done or not done, caused financial / reputational loss.

Error of commission

Intentional error, intentional omission resulting in something not properly done or not done,  which resulted into financial / reputational los

Escalation clause

In banking it is a provision in loan agreements that allows a bank to raise profit rate if the market rates go over a certain level.

Escrow Account

Account to which an accountholder makes monthly or other periodic deposits, and authorizes the bank to withdraw funds to pay for certain fixed obligations such as taxes, rent, insurance premium.

Euro

This is unified banking currency  of all the countries comprising European Union (EU), except Britain, Denmark, and Greece. The euro (€) is the official currency of member states of the Europe Union (EU). The states, known collectively as the Euro zone. The euro was introduced to world financial markets as an accounting currency on 1 January 1999, replacing the former European Currency Unit (ECU) Euro coins and banknotes started circulation on 1 January 2002. As of November 2008[update], with more than €751 billion in circulation. 

Euro dollar

US currency or funds held in banks outside the United States i.e. in Europe or anywhere else. Eurodollars are used commonly for settling international transactions

Evening safe

Safe in which cash collected after counter hours is kept overnight.

Evidence

Evidence includes everything that is used to determine or demonstrate the truth of a dispute. it includes presentation of documents, records, personal appearance and such items relating to the existence or non-existence of suspected or disputed facts into which a court enquires.

Exchange Commission

Fee for exchanging one currency to the other. e.g. US $ to rupee & vice versa.

Exchange control

Restrictions imposed by government on conversion of a countrys currency for another, with the purpose to improve its balance of payments position.

Exchange equalization account

An account through which treasury settle claims from & to the branches

Exchange rate

Value / conversion of currency in term exchange of other currencies

Exchequer

The treasury /governmental department responsible for the collection and management of the national revenue and funding. 

Ex parte

Unilateral, one-sided, by and for a single party. Cases which are not defended despite repeated summons, these are decided as Ex parte by the court.

Expense

Cost incurred to generate revenue.

Export

Products and services of local origin sold to other countries for the purpose of earning Foreign Exchange.

Export financing

Funds advanced by banks /DFIs against confirmed orders from qualified foreign buyers to enable the exporter to make and supply ordered goods. In order to support genuine exporters, SBP has introduced certain credit schemes. These schemes for export sector have contributed a lot in increasing foreign exchange earning for Pakistan. SBP has launched Export Finance Scheme (EFS) Islamic Export Refinance Scheme (IERS) Scheme for Long Term Financing for Export Oriented Projects (LTF_EOP)

Export house

Export Houses act as intermediaries between the potential buyer and the prospective seller who are possibly unknown to each other. They offer a range of useful trade services. 

Export promotion Bureau (EPB)

This  is the apex agency of the Government of Pakistan engaged in promotion and growth of countrys exports. Since its establishment in 1963 as an attached department of the Ministry of Commerce, EPB facilitate the exporters in overcoming the supply and demand difficulties they face.EPB has its headquarters in Karachi with 14 regional offices all over the country. The regional offices mostly perform facilitation and regulatory functions as well as providing supply side and marketing assistance to the exporters.

Exposure

It refers to financing facilities whether fund based and / or non-fund based except ones drawn against the L/Cs of banks / DFIs rated at least ‘A’ by Standard & Poor, Moody’s, Fitch-Ibca, Japan Credit Rating Agency (JCRA) or credit rating agency on the approved panel of State Bank of Pakistan and duly accepted by such L/C issuing Banks / DFIs. it also indicate total amount of financing facilities provided and availed by a single borrower, group, industry, or country

Extra ordinary general meeting

Any formal meeting of shareholders, held between two annual general meetings (AGM), called by the directors or shareholders cumulatively holding ten-percent or more of the voting rights for transacting some special business.

Extra ordinary resolution

Company resolution that usually does not require any notice of its proposal, but must be passed by a majority of at least three quarters of the votes cast. 

Ex factory 

This is a term of sale which signifies that the price invoiced or quoted by a seller includes charges only up to the sellers factory or premises. All charges from there on are to be borne by the buyer.