May 232021

The set of basic assumptions about the organization and its goals and ways of doing business; a system of shared values about what is important and beliefs about how things get accomplished; it provides a framework that organizes and directs employee behaviour at work; it describes an organization’s norms in internal and external, as well as formal and informal, transactions

Please browse the site for more banking and finance terms. We are adding new terms every single day, so come back tomorrow, or sign up to the ‘Word of the Day’ email to receive a definition like the meaning of Organizational Culture in your mailbox each morning.


Please leave your comments on Organizational Culture below. Remember, every comment gets you another entry into the random prize draw for 100 GBP of Amazon vouchers.

Next winner will be selected on [date]. Comment now!

May 152021

This technique allows a borrower to legally raise finance (so improving its cash position) without showing any associated liability on the balance sheet. Because of that it can flatter key ratios such as gearing (debt finance as a proportion of total outstanding finance). Usually a separate ‘special purpose vehicle’ (SPV – another company) is set up first to facilitate this type of deal.

So for example a bank may sell a package of outstanding mortgage receivables to an SPV in return for cash. The SPV raises the money needed to buy the mortgages from the bank by issuing its own ‘mortgage backed securities’ to investors. If the bank can persuade regulators that any subsequent claims by the SPV’s creditors should be met from the pool of assets (mortgage backed securities) held by the SPV, the associated liability remains in the books of the SPV and not the bank. As such the obligation to repay the debt issued by the SPV remains off the bank’s balance sheet.

Visit for Finance terms. Learn explanations of banking words like Off-balance-sheet finance every day. You will start to leap ahead of your peers and will earn a top salary.


Are you still unsure what the meaning is of ‘Off-balance-sheet finance’? If so, comment below and I will try to respond via this page as soon as possible.

May 142021

A formulation of the details of implementing and maintaining an organization’s strategic plan; it is typically formalized in the master budget

Come back soon for more on Operational Plan and explanations of banking words. Please join the mailing list to stay informed of updates.


Every comment you leave gets you an entry into the draw for 100 GBP of vouchers from Amazon UK. Next winner will be selected on [date].

Comment now!