2023 July

In the technical jargon of the financial world, generally states that introduce their currency as an official means of payment without the consent of the responsible central bank. – In Europe, those countries that officially use the EUR in their economic territory without the consent of the ECB. These are currently (2013) Andorra, Kosovo, and… read more »

an arrangement – based on private contracts or statutory regulation – relating to the transfer of money and the settlement of accounts – between several members – according to common rules and – following specified, standardized execution channels (a series of predetermined legal, technical and procedural arrangements for the transfer of money and the settlement… read more »

Planned technical and organizational measures within an institution aimed at preventing damage that may be caused by its own staff or malicious third parties. – See Minimum Surveillance requirements, whistleblowers. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol.,… read more »

a fund structure consisting of several subfunds (subfunds, subfunds, share classes; parts of full fund that are available for investing). The entirety of the subfunds forms a legal entity (umbrella). As a result, only a single admission procedure is required for the umbrella. As a rule, investors can switch from one subfund to another of… read more »

Macroeconomic disruptions within the euro area are the cause of strong pressure on the common currency and the long persistence of the financial crisis that followed the subprime crisis. This has led to the need for early detection and monitoring of imbalances. Such imbalances regularly result in a loss of competitiveness, high current account deficits… read more »

Special form of convertible bond. In the case of a convertible bond, the investor is granted the right to exchange it for shares in the issuer at a fixed ratio. In the case of a convertible bond – also known as an exchangeable bond – on the other hand, the issuer grants the investor the… 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 »

A situation in which a bank customer withdraws more from the account than was previously deposited; a bank may accept an overdraft, depending on prior arrangements to cover overdrafts). – See refund credit, cash credit, overdraft facility, account, automatically balanced, overdraft facility, credit card, overdraft, overdraft fee, template. Attention: The financial encyclopedia is protected by… read more »

The supply of and demand for short-term loans at the end of the month, caused on the demand side by payments required at the end of the month, especially salaries. Sometimes loans on the dates of advance tax payment are also included. – Amounts that are contractually due automatically at the end of the month… read more »

The asset underlying a forward contract (the asset upon which a forward contract is based; it can be either a financial asset, e.g. a share, a bond, a treasury bond, a forward contract, currency, a stock index, etc., or a commodity, for example a raw material or mining asset). – See underlying asset, commercials, derivative,… read more »