Category Archives: Payments

Learn #banking, #fintech and #payments jargon: Lombard Loan in RTGS

By | June 12, 2024

What is a Lombard Loan? The name ‘Lombard’ comes from a region in northern Italy. The Italian banking houses in the Lombardy Region had a rich history dating back to the Middle Ages. They are famous for first developing and popularizing the concept loaning money backed up by liquid assets. In RTGS context a Lombard… Read More »

My notes from #Sibos2021 #banking #fintech

By | December 11, 2021

This year, SIBOS was held yet again as an online conference in October. This is in fact a good thing because more people can participate and you are not stuck at your company booth :), so in fact you can attend all the interesting topics. So here are my notes of things that caught my… Read More »

Two e-mails that changed the world #linux #bitcoin #future

By | November 2, 2021

Sometimes world changing grandiose events have very humble beginnings and can be seen at their time as something of not importance. I love how Internet is able to “record” this birthday of world changing cascading events with simplicity and ease. This was never the case in history. We read in history books only post factum… Read More »

Learn #banking, #fintech and #payments jargon: Money

By | August 11, 2021

Money Definition: Money is any object that is generally accepted as payment for goods and services and repayment of debts in a given context. Details: The main functions of money are distinguished as: a medium of exchange; a unit of account; a store of value; and, occasionally, a standard of deferred payment. Money evolved over… Read More »

Learn #banking, #fintech and #payments jargon: Counterparty risk

By | August 1, 2021

Counterparty risk Definition: Counterparty risk is the risk of one or more parties in a financial transaction defaulting on or otherwise failing to meet their obligations on that trade. Details: Thre are several degrees of risk involved in financial transactions between financial institutions depending on the type of payment rail involved. In critical RTGS systems… Read More »

Learn #banking, #fintech and #payments jargon: Credit Limit Check

By | July 23, 2021

Credit Limit Check Definition: The process of verification if an account may be debited or credited in a settlement system. Details: If the amount to be debited in the payment message is equal or less than the balance on the sender’s correspondent account than the credit check limit passes. If the amount to be credited… Read More »

Learn #banking, #fintech and #payments jargon: Bulk Payment Instruction

By | July 23, 2021

Bulk Payment Instruction Definition: A set of payment orders delivered together for processing which may be destined for several receivers. Details: Bulk payment instructions are payment instructions delivered to the clearing and settlements system as bulk files and are processed together ordered after some criteria containing at least the same sender and receiver. Note that… Read More »

Learn #banking, #fintech and #payments jargon: Payment versus payment (PvP)

By | July 22, 2021

Payment versus payment (PvP) Definition: A settlement mechanism that ensures that the final transfer of a payment in one currency occurs if and only if the final transfer of a payment in another currency or currencies takes place. see Principles for financial market infrastructures Details: PvP is in fact a cross-border cross-currency unitary operation.… Read More »

Learn #banking, #fintech and #payments jargon: Correspondent banking network

By | July 21, 2021

Correspondent banking network Definition: Correspondent banking is an arrangement whereby one bank (correspondent) holds deposits owned by other banks (respondents) and provides those banks with payment and other services (CPMI (2016)). Correspondent banking networks are critical for firms and households that conduct business or send payments internationally. Correspondent banking – final report Details: Correspondent… Read More »

Learn #banking, #fintech and #payments jargon: Cross-border payments

By | July 21, 2021

Cross-border payments Definition: Cross-border payments are those type of payment where the payer and payee reside in different jurisdictions. Many of these are also cross-currency payments – that is, payments where the payer and payee are respectively debited and credited in different currencies. Payments within monetary unions or payments in a common invoice currency may… Read More »