English

Generally, the requirement for a debtor to bring the pledges deposited to cover his loan up to the level specified in the contract by delivering further collateral (additional coverage). – Especially in futures trading:…

A loan which has to be repaid immediately in full on demand of the creditor. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent!…

In contrast to the Einzugsgeld (Anmanngeld, Bürgergeld, Anzugsgeld, Nachbargeld, Rezeptionsgeld), in former times a one-time or installment payment in a fixed amount, which a person had to make to become a member of an…

In older documents, a person who receives an annuity for life. Today still said of a Catholic clergyman (canon, capitular; capitular) who – usually at a bishop’s church (cathedral church) – receives his income…

A common term for a share in a company that is not fully paid up, but where fully paid-up shares are usually also issued. – In the course of employee participation, the issue of…

A small loan granted by a bank to a wage earner to help him or her bridge the gap until the next payday, sometimes also called a payday loan (a small, short-term loan that…

A small loan granted by the bank to a wage earner to help him or her bridge the gap until the next payday, sometimes also called a payday loan (a small, short-term loan that…

In the context of the insurance industry, an investment to secure (cover) claims arising from insurance contracts. Corresponding laws and regulations of the supervisory authorities stipulate the respective ratio. – In the context of…

In the context of the insurance industry, an investment to secure (cover) claims arising from insurance contracts. Corresponding laws and regulations of the supervisory authorities stipulate the respective ratio. – In the context of…

Someone who buys shares when the stock looks to be undervalued, and then sells them later. Overvalued securities in his portfolio are sold at a profit (someone who buys shares of a company when…

Someone who buys shares when the stock looks to be undervalued, and then sells them later. Overvalued securities in his portfolio are sold at a profit (someone who buys shares of a company when…

The abandonment (non-exercise; giving up) of an option (decision not to exercise or offset an option), then also called waiver (waiver: generally the intentional relinquishment of a right, claim, or privilege). – The sale…

The irrevocable surrender to the use of a right (to give up a right with the intent of never again claiming). – The withdrawal of the right to exercise an option (to make a…

The risk that a bank has made advance payments, especially the raising of capital, but that the project will not be completed at all (the project will be abandoned) or not to the planned…

Generally, the reduction of a sum of money owed: the abatement of a debt sum, especially also to the tax authority (tax abatement: the reduction [or even cancellation] of an assessed tax). – See…

Often said in older documents for – a fall in prices in a market, – a discount granted by a seller to a buyer for various reasons (the act of reducing the selling price…

Internationally, it is customary to abbreviate bank names with more than three syllables in business transactions on the financial market and also in everyday language to a usually two-syllable word or a usually three-digit…

Important abbreviations (shortened forms of a word or a phrase) from the world of finance, including the (official) abbreviations of relevant laws and regulations, can be found in alphabetical order in the appendix of…

With regard to the financial market, the ability of market participants to keep past market developments in mind. As financial psychology teaches, bad developments are quickly forgotten by all participants (“financial disaster is quickly…

Special assets of a capital management company that has invested all or a very high proportion of its assets in asset-backed securities. – In the course of the subprime crisis, individual ABS funds suffered…

A former levy in cash to the upper ecclesiastical authority (diocese) on the part of those clergy who drew regular income from more than one salaried appointment (prebend; prepend), sometimes called table money. –…

A pejorative term for the fact that investors are often no longer personally connected with a company, as was the case in earlier times with respect to shareholders and lending banks (the investment in…

In the commodity futures market said of well-funded futures traders who buy contracts on a larger scale. – If, on the other hand, these strong hands sell commodity futures contracts, this is called a…

In terms of the financial market, the ability of consumers to absorb offered products into their portfolios. If the supply of securities exceeds investor demand to a large extent, this is also referred to…

Generally, a period of time that is granted in addition to the payment period, after which collection is only carried out. – In the case of (financial) contracts, a period of time that exempts…

The unlawful appropriation of entrusted sums for oneself or for others (the act of taking away or separating money given in trust). – See defects, depeculation, financial rogue, irregularity reporting, undertunneling, conduct risk, embezzlement.…

In older documents, the payment that the clergyman (prebendary) assigned to a position (Pfründe; prebend) had to hand over to the church leadership; usually half of the fruits of the first year. – See…

In older literature and stock market reports, a term for abundant money seeking investment. – See attentism, liquidity trap, market weakness. Attention: The financial encyclopedia is protected by copyright and may only be used…

Unless otherwise defined, this refers to the “Law on the Prevention of Abusive Securities and Derivatives Transactions (WpMiVoG),” which came into force in July 2010. Uncovered short selling in equities and in securities of…

At a supervisory authority, the area dealing with violations in the course of takeover law. This includes all actions that – impair the proper conduct of offer procedures or – may cause significant disadvantages…

Earlier compensation payment to the retiring peasant sole heir (= Anerben: the one to whom the undivided inheritance [the farm] passes, usually the eldest son). In cases of dispute, the amount of the settlement…

When the central bank increases the money supply and the interest rate falls as a result, CETERIS PARIBUS (among other things: when expectations are positive) investors and the government expand demand. – More orders…

The acceptance of a bill of exchange debt by the drawee. By signing, he legally becomes the acceptor (acceptor, in older documents also corresponsal) with the obligation to pay the amount of the bill…

A standard bank account in which funds are accessible to the account holder by check, telephone order, debit card or similar device in addition to inperson withdrawals. As a rule, balances in these accounts…

A standard bank account in which funds are accessible to the account holder by check, telephone order, debit card or similar device in addition to inperson withdrawals. As a rule, balances in these accounts…

In general, in financial language, this means – the customer’s (easy) access to the bank and – in particular, contact with a knowledgeable employee (supporter), – as well as after hours via telephone or…

Unless otherwise defined, countries that wish to join the European Union. – The ECB is involved in negotiations on the admission of new members to the EU (i.e. not also to the Eurosystem) because…

In the context of the Eurosystem, a country that adopts the euro as its currency unit without consulting the ECB. Currently (beginning of 2012), Montenegro (a multi-ethnic Balkan state with a population of about…

All transfers in cash or non-cash benefits granted by an employer to an employee in addition to the agreed basic pay. The central bank calculates the amount of these benefits because they help determine…

An insurance company providing compensation for accidental damage. In Germany, accident insurance firms are subject to supervision by the Federal Financial Supervisory Authority. For the financial market as a whole, these companies are important…

An insurance company providing compensation for accidental damage. In Germany, accident insurance firms are subject to supervision by the Federal Financial Supervisory Authority. For the financial market as a whole, these companies are important…

In older financial jargon, for a courtesy loan in which – a person known to be solvent vouches that – a loan will be granted to a debtor – by a third person –…

The paid use of resources in connection with accommodation in hotels, motels, guesthouses, vacation homes and other commercially operated accommodation, including the use of corresponding offers from farms, sports facilities, riding clubs and similar…

A written agreement from one company to back the credit liability of another. In most cases, there are more or less close links between the two companies. In most cases, there are more or…

Transactions between brokers based on a price that does not correspond to the price on the stock exchange (a type of trading in which a broker accommodates another by entering into a non-competitive purchase…

Often used in older financial language for – an agreement in the sense of a bargain between market participants, – a contract. – See chord, contract, concert. Attention: The financial encyclopedia is protected by…

Account, settlement. – Access authorization to an IT system. – Report, description, presentation. – See financial language. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without…

Access by public authorities to a customer’s records at the bank. The legal basis is the Law on the Promotion of Tax Honesty of December 23, 2003. In 2011 (2013), there were roughly 106,000…

An arrangement with a bank that, in the case of two accounts, one of which is high-interest, the bank automatically transfers unclaimed funds from the non-interest-bearing or low-interest account to the high-interest account (an…

Since November 2003, the Federal Financial Supervisory Authority has had the right under Section 6a of the German Banking Act (KWG) to prohibit banks from issuing (payment) orders relating to certain accounts held with…

Pursuant to Section 6a of the German Banking Act (KWG), the German Federal Financial Supervisory Authority (BaFin) may order the blocking of accounts in cases of suspected terrorist financing (the processing of funds to…

Since April 1, 2003, every credit institution in Germany has been required under Section 24c of the German Banking Act (KWG) to keep an up-to-date file of all accounts and securities accounts held in…

Commitment entered into by banks in Germany in 1995 to provide every person, in principle on request, with a checking account that at least allows them to receive credits, cash deposits and cash withdrawals,…

In banking jargon, customers who open an account with a bank for only a short period of time – usually only in order to take advantage of favorable services offered by that bank –…

In general, the accounting representation of holdings of money and assets and their movements. – In the dealings of an institution with the customer, the accounting of all deposits and withdrawals made or of…

An amount charged by a bank to compensate for the costs incurred by the institution in connecting with the customer (the fee a bank charges for administrative expenses including the costs for establishing and…

Unless otherwise defined, the targeted search for illegal transactions. – See observation note, money laundering, account freeze, monitoring. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes…

Credit industry associations sometimes offer assistance in the search for unknown accounts of decedents or persons in their care. However, the Federal Financial Supervisory Authority (BaFin) cannot require such assistance, although it could locate…

A bank account where the name of the account holder is kept secret, and he identifies himself to the bank by means of a code word known only by the account holder and a…

A business relationship in which reciprocal transactions are booked in account form; balancing then takes place from time to time; cf. Section 355 HGB. – See set-off, current account credit, nota. Attention: The financial…

An account where the bank’s connection with the customer is broken. This is particularly the case if – letters from the bank are returned as undeliverable, – in the case of correspondence and deposits…

An account opened with a bank by presenting false or forged documents. – It is not uncommon for such accounts to be set up in the names of actual living persons without their knowledge.…

In older literature, an account with a customer, whether a person or an entity. An impersonal account, such as a salary account or securities account, was called a dead account. Attention: The financial encyclopedia…

The requirement that when a customer moves from one bank to another, the account number must be transferred to the new provider. – The account numbers commonly used in Germany today are assigned according…

Unless otherwise defined, in Germany generally an account that has not been accessed for thirty months. In many countries, this period is partly standard banking practice and partly shorter or longer by law. –…

The process of satisfying stakeholders in a company and specifically in an institution that managers have acted in the best interests of the stakeholders, as a result of the stewardship function of managers, which…

Body of the ESCB with the objective of discussing internal accounting issues in an expert manner and submitting appropriate proposals to the Governing Council. – Cf. 2001 Annual Report of the Deutsche Bundesbank, pp.…

Binding regulations for the preparation of balance sheets for all German companies as of December 31, 2010. The core objective of the Act is to adapt the accounting system to changing circumstances, especially in…

The ability of debtors to pay their debts as and when they fall due; usually it is expressed as a ratio or a percentage of current liabilities. – See liquidity budget, liquidity coverage ratio,…

A profit generated by a successful financial transaction but not yet received and credited to the corresponding account. – The profit of a company as reported on its income statement. – See settlement confirmation,…

Committee of representatives of the EU member states; chaired by the European Commission. Its task is to advise the Commission on matters relating to international accounting regulations. – Cf. ECB Monthly Bulletin, February 2004,…

Accounting principles applicable in China since the beginning of 2007. They are broadly aligned with IFRS. – Cf. BaFin Annual Report 2007, p. 64 (effects). Attention: The financial encyclopedia is protected by copyright and…

In connection with Basel II, a body whose main task is to harmonize banks’ accounting for regulatory purposes. It also develops guidelines on auditing and thus also on the quality of banks’ auditing departments.…

Illegal accounting practices used to make a company or a public budget look like it is in better financial condition than it actually is. – See balance sheet adjustment, balance sheet cosmetics, accounting, creative,…

The preparation of a balance sheet that is formally correct, but in which significant risks are understated. – Auditors have often given their unqualified opinion to such misleading balance sheets, as in the course…

Distorting, deceptive accounting with a particular emphasis on reporting profits that are not actually earned (a wide range of unscrupulous methods for making a company’s profits appear larger than they really are. These methods…

The change in the price of a bond bought at a discount between the original price and the par value of the bond. – In relation to a company, also said of the increase…

A bond that accrues interest. However, the accumulated interest is not paid out until the bond is sold (bond on which interest accrues but is not paid to the bondholder until maturity; that is:…

In general, according to this basic rule, business transactions are always recognized in the period to which they are attributable and reported in the period-end financial statements (balance sheet). In other words, they are…

When a bond is purchased, the previous owner, in addition to the price determined by the respective price of the paper, also has the right to claim the share of the coupon up to…

When a bond is purchased, the previous owner, in addition to the price determined by the respective price of the paper, also has the right to claim the share of the coupon up to…

In a company, the accumulation of capital for the purpose of meeting future payments whose amount and due date are not yet precisely known; see Section 249 HGB. – As expected liabilities, accruals belong…

A security that is issued at par but does not bear interest on an ongoing basis; instead, the repayment amount includes interest and compound interest in addition to the capital invested. Repayment usually takes…

In terms of risk in the financial sector, several risks insured with the same company with the resulting risk that all of them can be affected simultaneously by a loss event. – See actuary,…

Special fund of a capital management company in which the income is not distributed to the investors entitled by means of unit certificates, but is immediately used for reinvestment upon receipt. In Germany, the…

Special fund of a capital management company in which the income is not distributed to the investors entitled by means of unit certificates, but is immediately used for reinvestment upon receipt. In Germany, the…

In financial language, this means the possibility of being able to start or complete something in the near future (capable of being acted on or completed in the near future. – Actionable has a…

Unless otherwise defined, the ratio of an economic entity’s assets that are immediately convertible into cash to its current liabilities (promptly liquidatable assets divided by current liabilities); sometimes also called first-degree liquidity. – See…

A card contract intermediary, namely a company that concludes agreements on accepting cash cards from a card-issuing bank at points of sale (in retail outlets, gas stations, lodging houses, restaurants, car rental agencies, airlines,…

In the broadest sense, any kind of intended acquisition, such as an academic degree (any act of acquiring). – Amount of money as payment for an activity, especially the salary for professional work performed…

The declaration by a company – not necessarily made public – that it intends to take over another company, but without actually having this intention or even having already made a takeover bid. –…

The declaration by a company – not necessarily made public – that it intends to take over another company, but without actually having this intention or even having already made a takeover bid. –…

Generally, a payment to the broker of a contract in finance. – See brokerage, transactions, commission-based, fee, brokerage fee, margin, commission, proxenetics, remuneration. – Cf. 2010 Annual Report of BaFin, p. 115 f. (supervisory…

The price actually paid by the purchaser when buying an asset in general and a security in particular (the amount it costs to gain title to any property; the price and all related expenses…

In general, the purchase price of an asset plus the usual incidental acquisition costs. Incidental acquisition costs are payments made in addition to the purchase price in the narrower sense, such as, for example,…

In older financial terminology, the purchase and sale of securities (by a bank). Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor…

A loan (from a bank) to finance the acquisition of a company by the borrower. – See mergers and acquisitions, leveraged buy-out, private equity financing. Attention: The financial encyclopedia is protected by copyright and…

A loan (from a bank) to finance the acquisition of a company by the borrower. – See mergers and acquisitions, leveraged buy-out, private equity financing. Attention: The financial encyclopedia is protected by copyright and…

Acquisitions through which a bank (generally: through a company) seeks to gain a stronger position in the market (acquisitions that carry synergy potential through integration with existing operations). As financial history teaches, this has…