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 old documents, a levy on – beverages for retail sale in general and – in some areas, on wine in particular; sometimes called wine detz. – See Detz, Trinkgeld, Verzehrgeld,, Zehnt. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard… read more »

In the case of bonds, the – previously contractually stipulated change – in the terms and conditions, especially with regard to interest and redemption. – In the case of options, a special strategy, namely – the sale of a spot position, whereby – a purchase position for the same commodity is entered into on the… read more »

Fee charged by banks when a customer exceeds the agreed credit limit. – Because the overdraft places the account holder in a lower credit rating category, the interest rate for the loan agreement is often increased for the account holder as a whole, which often leads to complaints from the customer. – See acquisition fee,… read more »

German term for the Bank Lending Survey, which has been conducted in the euro area since 2003, usually in January, and the results of which are then published in the ECB’s February Monthly Bulletin with comments. – Cf. ECB Monthly Bulletin of November 2008, pp. 61 ff. (Reliability of survey results in turbulent times; overviews)…. read more »

In the financial market, the empirically verifiable fact that disturbances in one market segment, such as defaults on consumer loans, have an impact on other areas, even on the market for mortgage bonds, which is crisis-proof due to its strict cover requirements. This is justified by changes in behavior in an agitated market environment (state… 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 »

A bank’s current account balances in excess of the reserve requirement (actual reserves above central-bank required reserves). – See reserve requirements, excess liquidity. – On the level of excess reserves, see the annex “Euro area statistics,” heading “Monetary statistics,” subheading “Reserve fulfilment” in the respective ECB Monthly Bulletin; ECB Monthly Bulletin of October 2005, p…. read more »

The suitability of a banknote – in terms of material and substance (quality) and – in terms of legitimacy (legitimacy, authenticity) – to perform its tasks in payment transactions. – See banknote management, validation, bridge Abney phenomenon, counterfeit protection, window money, secondary currency, security strip. – Cf. ECB Monthly Bulletin, October 2007, p. 111 ff…. read more »