IBAA

See Inter Bank Agency Agreement

IBAN

International Bank Account Number. An international standard to facilitate cross-border payments. This is being introduced in 2001/2002. 

ICC 322

The International Chamber of Commerce’s Uniform Rules for Collections. 

ICC 323

The International Chamber of Commerce’s Standard Forms for Issuing Documentary Credits.

ICC 325

The International Chamber of Commerce’s Uniform Rules for Contract Guarantees (published August 1978). Still available, but not widely used as it is intended that ICC 458 replace these Rules.

ICC 420

The International Chamber of Commerce’s Guide to the Prevention of International Trade Fraud. 

ICC 458

The International Chamber of Commerce’s Uniform Rules for Demand Guarantees (published April 1992). These Rules reflect more closely international practice in the use of guarantees, which ICC 325 did not. Standard guarantee texts have been produced to complement these Rules.

ICC 460

The International Chamber of Commerce’s Incoterms 1990.

ICC 500

The International Chamber of Commerce’s Uniform Customs and Practice for Documentary Credits (1993 revision) - replaced the previous ICC 400 as from 1 January 1994.

ICC 522

The International Chamber of Commerce’s Uniform Customs and Practice for Collections (1995 revision) - replaced the previous ICC 322 as from 1 January 1996.

ICC 524

The International Chamber of Commerce’s Uniform Rules for Contract Guarantees (effective 1 January 1994). These Rules are intended for use by the insurance industry and not the banking community. Standard guarantee texts have been produced to complement these Rules.

ICOM

International Currency Options Markets Master Agreement terms published by the British Bankers Association, covering Foreign Exchange Options only.

Identifiable

A legal definition which distinguishes between types of assets. An asset that is identifiable, is usually tangible (e.g. a piece of machinery) rather than intangible (e.g. Goodwill).

IFEMA

International Foreign Exchange Master Agreement terms published by the British Bankers Association, covering spot and forward foreign exchange.

Implied Volatility

A value that is used in the pricing of an option, or that which may be implied by observing the actual price of an option.

Import License

A permit granted by a country’s authorities allowing the import of goods subject to licensing restrictions.

Import Line

A banking facility provided to an importer covering documentary credits, bill receivables and import loans.

In-box

Where your e-mail messages are received on your PC. 

Income Tax

Income tax is the tax chargeable on the income a UK resident earns in any one tax year.

Incoterms

A series of trade terms developed by the international community and published by the International Chamber of Commerce to standardise and simplify price and transport costs. These terms identify the responsibility and liability of the buyer and seller, for each delivery term. Note: Delivery terms will specify the destination or the place at which liability is handed over, e.g.. “FOB Singapore Incoterms”, “CIF Liverpool Incoterms” or “DDP Manchester Incoterms”.

Indemnity

An undertaking given by one party to another (the beneficiary) promising to indemnify the beneficiary against any losses, damages, costs or expenses that might arise as a result of the beneficiary carrying out or performing a specific act specified in the indemnity.

Indication Price

An information price that cannot be used to transact. 

Indirect Guarantee

A Guarantee issued by utilising the services of another bank in addition to that of the Applicant – also see Instructing Bank and Issuing Bank.

Inherent Vice

In insurance terms, this term is used to describe a commodity that has a tendency to self-destruct (e.g. fruit rots, coal-dust spontaneously ignites), which gives rise to a high insurance risk and cover is given only after payment of an additional premium.

Institutional Investor

A non-private investor - normally a financial institution such as a bank, pension company or insurance company. 

Instructing Bank

A bank who requests another bank to issue the Guarantee to the Beneficiary.

Insurance

Cover against an event that isn't inevitable e.g. your car being stolen. 

Insurance Schedule

The schedule is part of your Home Insurance document and contains details of you, the premises, the sums insured, the period of insurance and the sections which apply. 

Interbank

The name given to dealings between major banks. 

These are bi-lateral arrangements between banks. They principally provide a service offering of certain branch counter services to another bank's customers by prior arrangement. They facilitate an essential service that enables businesses that find the accessibility of their own banks branches difficult - for example due to location or size. The nature and range of the counter services offered is at the discretion of the providing bank. The banks charge each other on a reciprocal basis after another bank's customer uses the agreed counter services.

Inter-Bank Indemnity

See Counter Guarantee.

Interest Rate Cap

An option that sets an upper limit on the level of an interest rate. Compensation is payable to the holder of the option if rates exceed the protected level. A premium is required.

Interest Rate Floor

An option that sets a lower limit on the level of an interest rate. Compensation is payable to the holder of the option if rates fall below the protected level. A premium is required.

Interest Rate Swap

An agreement to exchange a floating interest rate for a fixed one (or vice versa) or from one type of floating rate to another over an agreed period of time, in respect of an agreed principal amount.

International Chamber of Commerce (ICC)

The international body that promotes and facilitates world trade, and who codifies world trade practices in various sets of Rules.

International Draft

A cheque drawn on an overseas bank, issued in either local currency or sterling. These are generally accepted world-wide for payment. There are some countries where we are unable to issue drafts, mainly due to local restrictions imposed on HSBC by that country

International Guarantee

A Guarantee issued by a bank, resident in a different country from the Applicant and/or the Beneficiary. 

Intranet

A company specific version of the Internet. Whilst some access may be given to outsiders, secure areas will be protected by a robust firewall.

Investment funds

The money you pay into a pension is invested. Providers usually offer a number of different funds in which you can choose to invest. These can range from higher risk funds, investing in the UK or international stock markets, to lower risk funds, investing in cash deposits.

Invitation to Bid/Tender

A written request from a potential buyer seeking quotes from potential suppliers to satisfy the buyer’s need to acquire goods and/or services. 

Invoice Finance

There are two main types of invoice finance: a) Factoring - Used by many types of businesses. Used to improve cashflow from trade debts. The factoring company buys the trade debts owed to the business. They pay the business the value of the invoices upon receipt, at a discounted rate, and also charge the business a fee. The factoring company collects the debts, hence the business's customers will be aware that factoring is used. Some invoices, and some types of business are not eligible for factoring. b) Invoice Discounting - Used by well-established companies. As factoring, but the customer usually retains responsibility for collecting the debts, so their own customers will not be aware that any invoice finance agreement is in place. It is 'non-disclosed' invoice finance.

Inward Bill for Collection

A term used to describe the receipt of a bill of exchange by the collecting bank.

Irrevocable

Cannot be revoked or cancelled without the agreement of all parties to the transaction. 

Irrevocable Credit

A documentary credit which cannot be amended or cancelled unless the issuing bank, the confirming bank (if any) and the beneficiary all agree to this.

ISDA

International Swaps and Derivatives Association Inc. terms and conditions. Products covered can include interest rate swaps, spot and forward foreign exchange, interest rate caps, floors, collars, currency options and swaptions. 

ISDN

Turning copper telephone lines into high speed digital links that will send data, voice, images and video at high speed. A fast internet access will be achieved and the data transfer can start straight away - no waiting for the wailing modem to subside!

ISP

The company you register with to get onto the web. They provide access and, if you have a web site, may host your site pages on their computer. Examples include Freeserve, AOL.

ISP98

The International Chamber of Commerce’s International Standby Practices (published April 1998). These Rules are intended to be applied to Standby Letters of Credit and offer an alternative to use of ICC Publication 500 (Uniform Customs and Practice for Documentary Credits). 

Issuing

A term used by banks to describe the business of supplying plastic debit and credit cards to personal and business customers. 

Issuing Bank

In the context of Documentary Credits it is the bank that opens a Documentary Credit on behalf of its customer, the applicant. In respect of Guarantees it is the bank that issues a Guarantee to the beneficiary. Can also be known as the opening bank.