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Banking Acronyms

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V

VA - Veterans Administration (independent agency under the president operating various programs for veterans - became the Department of Veterans Affairs)

VA - Department of Veterans Affairs (federal agency handling various programs for veterans and their families - formerly the Veterans Administration)

VAN - Value-Added Network (an electronic data interchange network developed and maintained by a third party which provides comprehensive services to a business - inventory tracking system which connects to an outside vendor who handles ordering and delivery of new parts or items)

VaR - value-at-risk (banking measurement model used to calculate market risk for the purpose of determining capital reserve requirements)

VAR - value at risk (securities market method which uses the statistical analysis of historical market trends and volatility to estimate the likelihood that a given portfolio's losses will exceed a certain amount)

VAT - Value-Added Tax (indirect percentage tax levied on products or services at various stages of production and distribution)

VBO - vested benefit obligation (the actuarial present value of vested pension benefits employees have a right to receive regardless of future employment or future salary levels)

VC - variable cost (a cost that changes in total amount proportionately with production-level changes)

VELDA SUE - Venture Enhancement & Loan Development Administration for Smaller Undercapitalized Enterprises (federal agency that buys small busness loans by banks, pools them, then issues securities that are bought as investments by large institutions)

VFM - value-for-money auditing (alternative term for operational auditing - the auditing of an organization's operational and managerial activities as opposed to its accounting and financial transactions)

VHWO - voluntary health and welfare organization (an organization, supported by public contributions, that offers free or low-cost services, generally health-related, to the public)

VI - value index (net income produced by one dollar of research expense on new products)

VIE - variable interest entity (entity whose equity investors do not have sufficient equity at risk to enable the entity to finance its own operations - a variable interest changes as the entity's net assets change)

VOAR - variable overhead absorption rate (in cost accounting, variable overhead divided by the number of units)

VoIP - Voice over Internet Protocol (protocol which allows voice/phone calls to be transmitted over an Internet data network)

VPN - virtual private network (a secure, private connection through an untrusted network - a VPN allows employees to remotely access an organization's central server using the Internet)

VRM - Variable Rate Mortgage (mortgage agreement between a financial institution and a real estate buyer stipulating predetermined adjustments of the interest rate at specified intervals)