2023 July

The withdrawal from an account in excess of the balance or line of credit granted by the bank (the amount of a paid check or other withdrawal exceeds the available balance in a checking account). – The extension of expenditures beyond the revenues in the budget (the amount by which expenditures and encumbrances exceed the… read more »

A jargon, but unofficial, term for a bank from which a customer cannot withdraw cash from his or her account. Such companies are generally prohibited under Section 3 № 3 of the German Banking Act (KWG). It is irrelevant whether the business is conducted on a commercial basis or not. Nor is any scope of… read more »

In the context of the ECB’s liquidity monitoring of monetary financial institutions, this refers to the possibility of mobilizing money invested in financial instruments using payment facilities – such as checks, transfer orders and direct debits. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent!… read more »

Unless otherwise defined, the yield on top-rated bonds traded on the market, in the narrower sense of highly creditworthy government bonds, i.e. securities issued by countries which, according to reasonable economic considerations and investor assessments, are able and willing to repay the loans they have taken out. – See yield spread. – Cf. Annual Report… read more »

The execution of payments or the transfer of securities between two settlement systems (the settlement of a payment or securities transaction through a link between two separate payment systems or securities settlement systems). Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr…. read more »

In general, an entity assuming a financial risk and receiving an underwriting fee in return; an insurance company. – In particular, a bank that – buys all or part of an issue from the issuer at a fixed price, thereby also assuming the risk that the securities cannot be fully placed on the market, or… read more »

After 2010, this term was also used in financial jargon to describe expected events whose exact direct and indirect impact on the economic cycle and especially on the financial market can hardly be estimated. The term is used primarily in a negative sense, and in particular with reference to the possible sovereign default of EMU… read more »

A special form of asset-backed securities in which corporate sales are securitized. This form of financing is particularly widespread in the United Kingdom, where trade chains in particular raise new capital through such asset-backed securities. – Tertiarization. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express… read more »

Issuers of bonds – in practice: in economically unstable countries – build in provisions at the time of issuance that allow private security creditors to act collectively in the event of default. This is primarily a matter of enabling majority decisions by the creditors on any changes to the contractual payment terms. This is intended… read more »

The doctrine, still held today in blogs and a number of Internet forums, that money as an object made of metal or paper can never be productive (money in the form of paper or metal can not have productive power). Demanding interest is therefore not justified. – What is wrong here is that the opportunity… read more »