Banks play a crucial role in both local and international economies by aiding the flow of money, managing deposits and withdrawals, lending money and facilitating transactions. The sector includes various types of banks, such as commercial banks, investment banks, central banks and cooperative banks.

As pervasive as banking is, there are still a plethora of concepts in the industry, making it difficult to have a good grasp of the sector.

This quick glossary, written by Franklin Okeke for TechRepublic Premium, will make it easier to learn and understand banking concepts.

Featured definition from the glossary:

Collateralized debt obligation

A complex financial product that pools different types of debt, such as loans, mortgages or bonds and breaks it down into various tranches or segments of risk and return. These tranches are then sold to investors as securities, often with different levels of risk and potential returns.

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TIME SAVED: Crafting this content required 50 hours of dedicated writing, editing and research.