English

Abbreviation for consumer-to-business. This refers to payments made by private households to companies for the purchase of goods and services. Attention: The financial encyclopedia is protected by copyright and may only be used for…

Abbreviation for consumer-to-government. This refers to payments made by private households to public sector entities, primarily taxes. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without…

In jargon, a share or bond listed on a major exchange with low trading volume; the term derives from the type of storage unit [cabinet] in which orders for these securities are kept in…

In jargon, a share or bond listed on a major exchange with low trading volume; the term derives from the type of storage unit [cabinet] in which orders for these securities are kept in…

On the stock exchange, the exchange rate between British pound sterling and the U.S. dollar. – The word derives from the Transatlantic Cable, which was laid between England and the U.S. in the 1940s…

In older publications, the price of a security or commodity transmitted by telegraph (teleprinter, telex, ticker). Before computerization, the teleprinter was a cable-based device for transmitting information, similar to the landline telephone and the…

The fee for an official entry in the land register (Flurbuch; terrier, land register). – See sportel, taxe. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes…

The declaration of invalidity of a security and especially of a share. – A share can also be declared null and void without a court ruling if, for example, the holder fails to make…

In jargon, the department of an institute or brokerage firm where securities are received, distributed and maintained in physical form on an ongoing basis (the department of an institute or brokerage firm that receives,…

In the case of contracts on the financial market, the date specified therein. No consideration is given to whether the day in question is a working day or a holiday (any day of the…

In statistics in general and in financial market statistics in particular, distortions of the numerically represented transactions due to the fact that – months are of different lengths and – public holidays sometimes occur…

Unless otherwise defined, this refers to two individual orders entered at the same time for the purchase and sale of the same number of contracts of the same product, differing only in terms of…

The period from January 1 to December 31 of a year. However, many companies choose the business year for their balance sheet and annual report instead of the calendar year (business year, accounting year:…

in older documents – the payment for the purchase of a calf or – the contractually agreed payment for the lending of cattle: customarily by the rich to the poor members of a community…

The adjustment of risk weights to the respective credit risks; more specifically, the assignment of default probabilities to the individual rating classes. – A rating system is considered to be well calibrated if the…

Earlier fee paid to the gauger (calibrator, gauger), who had to – make any mass (space, circumference, height, length, weight, capacity) equal to the prescribed legal unit (standard gauge) and – verify compliance with…

A claim or demand for payment of money. – Call option: the buyer of a call acquires the right but not the obligation to buy a specified amount of an underlying at a specified…

An employee in the call center of an institution who primarily forwards telephone calls to the competent person in charge at the bank. – The call agent represents the voice and face of the…

A letter sent by a financial services provider to potential customers announcing a telephone call (a personal call by an employee). The supervisory authority considers this procedure to be prohibited cold calling. – Cf.…

In banks, the organizationally combined services for customers in the back-office area, especially telephone banking, telephone advice by specialists and hotline (hotline; central point of contact for incoming inquiries by telephone or e-mail about…

The earliest date on which the issuer of the bond may redeem the bond. – See call option. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes…

Unless otherwise defined, lending between institutions with the right to call the amount at any time for a short period of time, usually 24 or 48 hours. The interest rate is usually adjusted on…

Older term for deposits held at call with a bank, cf. these shown in the annex “Euro area statistics”, heading “Financial and non-financial accounts”, subheading “Major claims of the non-financial sectors” in the respective…

Older term for deposits held at call with a bank, cf. these reported in the annex “Euro area statistics”, heading “Financial and non-financial accounts”, subheading “Major claims of the non-financial sectors” in the respective…

Amounts lent between banks in large amounts. The lending bank can call the amount daily; the receiving bank can repay at any time without notice. – The ECB’s standing facilities set the upper and…

Amounts lent between banks in large amounts. The lending bank can call the amount daily; the receiving bank can repay at any time without notice. – The ECB’s standing facilities set the upper and…

The contractually acquired right to purchase an underlying asset at pre-agreed terms. – See call option, option. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without…

The contractual obligation of the seller, the writer, of an option to sell the underlying to the buyer by the expiration date at the strike price, regardless of the current price of the underlying.…

The writer of a call option has sufficient freely available underlying assets. If the current price of the underlying asset exceeds the strike price, then the writer misses the profit opportunity; because he must…

The writer of a call option does not have the necessary underlying assets. – In the case of options with physical delivery, the risk of loss in this case corresponds to the price difference…

At a bank, the risk that – borrowers draw on credit lines granted to them in an unplanned manner (in lending business) or – customer deposits are withdrawn to an unexpectedly high extent (in…

On commodity exchanges, the rule that the official bid price for immediately deliverable goods (actuals, cash commodities) is established at the level that emerges at the end of the exchange as a result of…

At a bank, contacting a customer who has sent a message – by letter, by telephone, including a message to the answering machine (answering machine), by e-mail, or by contacting the call agent –…

Unless otherwise defined, an invitation issued by the supervisory authority to those to be supervised – banks, insurance companies – to assist in the development of new prudential regulations. By means of corresponding impact…

Acronym (= short form of the first letters of several words) for capital, asset quality, management soundness, earnings and profitability, liquidity and sensitivity to market risk. Abbreviation frequently used in connection with the Gramm-Leach-Bliley…

If a bank accepts the early repayment of a loan, it generally charges a fee for this. This is because the institution incurs costs as a result; these are primarily due to the change…

Unless otherwise defined, the number of insurance contracts terminated, broken down into – early termination (terminations within the first twenty-four months of the contract being concluded within the financial year as a percentage of…

Unless otherwise defined, the number of insurance contracts terminated, broken down into – early termination (terminations within the first twenty-four months of the contract being concluded within the financial year as a percentage of…

A widespread game of chance in the USA in which bets are placed on the outcome of a candidate – usually a candidate for governor or the presidency (an investment that is directly tied…

Formerly a fixed contribution by the faithful to pay for (wax) candles for use in worship in the parish; today generally replaced by a corresponding offertory for voluntary dedication. – Levy of the faithful…

In financial terminology, a feature added to a security offering that helps make it more attractive to potential purchasers. For example, a bond may be “sugar-coated” by granting the initial purchaser a discount or…

An unfavorable, detrimental aura emanating from a provider in business transactions in general and in the financial market in particular – from an institution or also – from a particular event. – In mid-December…

In older documents, also – the regular payment in harvested crops or – a payment in money by a tenant to the landowner replacing the physical delivery. – See exemption money, detz, dispensation money,…

Acronym (= short word from the first letters of several words) as a designation for an investment policy, which is said to have brought the highest profit in the past, at least on the…

In the case of an institution and an insurance company, the methodically mostly extremely precisely elaborated measures to enter into a business relationship with previously unknown private households or companies. – See Advance Letter,…

Generally, the contractual agreement of an upper interest rate limit for the use of capital. If the interest rate exceeds this cap, the interest rate remains at this limit (an option-like contract for which…

Another term for cap money and today said primarily in the trucking business for a bonus to camonieurs (teamster [trucker]: one who drives a lorry [a truck]; Prussian pug-ugly [monstrously] six-syllabled phrase: Last-kraft-wagen-fah-rer). Attention:…

Contract under which a mortgage is taken out at variable interest rates. As a rule, the interest rate is adjusted quarterly and is based on an agreed reference interest rate, such as EURIBOR. In…

Proposed authority of the supervisory authority to prescribe maximum amounts for certain balance sheet items, such as loans granted, guarantees assumed and securitized receivables. The prevention of a bank’s difficulties is, however, the very…

The percentage at which the resources of a company or the economy as a whole are used for production (the percentage at which the production capacity is used). This indicator is also important for…

A ratio that relates the maximum possible output of an economy or company to its actual output. – See capacity utilization rate, output gap. – Cf. the respective rates of change in the annex…

In the past, an earmarked charge levied on incoming ships for the maintenance of the signal lighting (warning light) of a cape (headland: a projection of land that is dangerous for ships because it…

In old documents, the fine gold purified in a crucible (crucible: a heat-resistant vessel used to melt ores, metals, and other materials.; formerly also called Capelle and Chapelle in German). – See precious metals,…

Any sum of money in general (monetary capital). – Money that is generally intended for profitable, interest-bearing investment (earning capital). – Money used for investment, namely for the – construction, – expansion or –…

the requirement for approval of capital transfers abroad, organized by the central bank or a government authority on the basis of corresponding legal provisions (restriction of the free movement of capital; it consists of…

Statistical aggregate of all external transactions in financial capital. They are subdivided into direct investment, portfolio investment, financial derivatives, other capital movements and reserve assets. – See balance of trade, balance of payments. –…

The provision of additional own funds by a bank to cover any risks, as ordered by the supervisory authority in the course of Basel II. – Under Solvency II, the order of the supervisory…

As a regulatory term, the adequate capital resources of an institution. – See Cook ratio, coverage ratio, capital adequacy ratio, regulatory, capital adequacy guideline leverage ratio. Attention: The financial encyclopedia is protected by copyright…

All tangible, physical property, such as buildings, machinery, or business equipment (tangible, physical, real property, including durable goods, equipment, buildings, installations, and land) and then corresponding to the term fixed assets. – See fixed…

The proposal that the supervisory authority prescribe a higher regulatory capital ratio for individual institutions in good years. – However, this encounters difficulties for internationally active institutions with operations in different economic areas and…

Under Basel III, from 2016 banks must hold a special buffer to absorb any losses that may occur in times of stress. This must consist of hard core capital; however, in times of crisis,…

The fact that – an increase in banks’ refinancing costs must be passed on to customers. – Rising interest rates for loans, however, sooner or later lead to lower growth in lending and –…

Method of financing old-age provision. In this system, contributions from insured persons are allocated to tied assets, so that the income from this capital stock and the funds themselves pay the respective amounts due.…

The additional use of physical capital while labor input remains unchanged; capital intensity increases (capital per worker is increasing, it is an increase in the capital intensity. Capital deepening is often measured by the…

Unless otherwise defined, capital endowment is defined in monetary terms as the total amount of share capital plus retained earnings of a company minus the total amount of debt. – There are a number…

Investors prefer to invest abroad on a large scale (to a great extent) because they have better expectations for investments in the local currency area (generally in defiance of the political and/or economic conditions…

Income from assets; the precise definition is given in Section 20 EStG. – Increase in the value of a capital investment, such as the rise in the price of a share. – Profit on…

The profits of a stock corporation are initially taxed at source (profits and accordingly dividends are taxed by corporate income). The dividend paid to an investor must be taxed again in most countries under…

Any product used for investment. Experience has shown that the worldwide export of capital goods – brings relative continuity to foreign trade and – thus stabilizes economic fluctuations, from which countries such as Germany…

Produced means of production, such as tools, machinery, production equipment and buildings, that provide outputs over several time periods for the production of final goods – consumer goods, services (a factor-of-production category consisting of…

Important working group of the Basel Committee. It is primarily concerned with the narrower scope of Basel II and has formed several subgroups for this purpose. Attention: The financial encyclopedia is protected by copyright…

Generally, any profit from an investment, usually in the form of interest or dividends. Capital income is regularly subject to a special tax, namely capital yield tax (withholding tax). – See success, income, investment,…

Amount of fixed capital employed, measured per unit of labor or per unit of sales (the level of sales generated by a given amount of capital.) and thus an indicator of the capital endowment…

Generally, any use of money with the intention of – earning a profit or – at least preserving the purchasing power of the amount spent (any outlay of a sum of money to be…

A company that seeks to invest funds entrusted to it in return for share certificates in such a way that – the risks associated with the investment are kept to a minimum by spreading…

Generic term for all markets on which long-term loans and equity capital are traded (market in which long-term debt instruments are bought and sold). – In a narrower sense, the capital market refers only…

Unless otherwise defined, this is the yield on ten-year government bonds (more precisely: the average interest rate in terms of the return on the most recent ten-year government loan) of those countries which, in…

The inclusion of a country in the international capital flow. – As can be theoretically explained and statistically proven beyond doubt, such an opening is basically only beneficial for countries with reliable institutions. –…

In general, the unregulated, unorganized interaction of supply and demand for financial products. The gray capital market, which is very difficult to define in detail, takes place (appears) largely in the advertising section of…

Inflows and outflows of direct investment and securities between the euro area and non-EU countries are recorded by the ECB and evaluated for its monetary policy. – See direct investment, capital movements, international, reverse…

The flow of capital across national borders and currency areas. The outflows (capital push) and inflows (capital pull) depend in detail on several circumstances; in addition to profit expectations, above all on the respective…

Conducting business on the financial market without permission, although such permission is legally binding. – See capital market, gray. – Cf. 2013 BaFin Annual Report, p. 60 (definition). Attention: The financial encyclopedia is protected…

The forward-looking determination of the capital requirements of a company and an institution in particular. There are clearly defined regulatory requirements for banks to conduct capital planning over several years. – See capital conservation…

All state regulations covering the issue and trading of securities and designed to protect investors against securities fraud. – See investor protection, supervisory authorities, BaFin levy, supervision, full, capital protection, regulatory pressure, regulatory frenzy,…

Under Basel I, eight percent equity and other equity-like items had to be held in relation to risk-weighted assets – to be determined by allocating assets to specific risk groups. While this 1988 Capital…

Contracts offered in life insurance where an investor pays a fixed sum into a life insurance policy with a good interest rate. However, it is possible to terminate the insurance contract at short notice…

When calculating risk, the result of backing all risks: the overall risk profile). – According to the minimum requirements for risk management, an institution that does not include material risks in the calculation of…

Regulation issued by the EU Commission relating to the uniform determination of banks’ regulatory capital. It was to be implemented in the member states by the end of 2006. – See Basel II, Capital…

Information center set up by the EU Commission in summer 2006 and based in Brussels. Questions relating to the practical implementation of the new Basel II Banking Directive and the Capital Adequacy Directive can…

Regulation that came into force at the beginning of 2014 together with the new Capital Adequacy Directive with the aim of ensuring that institutions are better equipped with own funds in terms of quantity…

The proportion of equity capital that a company in general, and an institution in particular, is required to hold under legal provisions. – See investment liability, Capital Requirements Directive, Cook ratio, capital resources, capital…

In the broadest sense, any accumulated quantity of money or fixed assets that serves a specific purpose. – The fixed assets of a country determined and valued according to certain rules of national accounting,…

The composition of the fixed assets of an economy or a company, often subdivided according to investment vintages (years of origin). – The proportions of equity and borrowed capital in a company (the combination…

After 2000, a widespread term for a special approach on the part of some private equity funds. – These funds initially buy more than fifty percent of a stock corporation. – The company is…

The settlement and clearing of transactions on the financial market via electronically controlled systems. – Preplanned, usually regularly executed account movements using an electronic network. – See settlement systems, exchange concentration, European, clearing house,…

Measure of the capital needed to generate a given level of sales and the reciprocal of capital intensity. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes…

The cost of using physical capital within a period. – In the long term, commercial enterprises will expand or reduce their capital stock until the return on the last unit of capital just covers…

The statistically proven fact that additional money for investment purposes is not uniformly available worldwide over time, but that there are clearly discernible waves in supply – less so in demand. In trend terms,…

Additional workers – in a firm, in the economy – are endowed with the same amount of physical capital as those previously employed (the situation where capital stock is increasing at the same rate…

One of the methods used to more accurately predict the relationship between risk and expected return from an investment. – See formulas, financial mathematics, Modigliani-Miller theorem. – Cf. Monthly Report of the Deutsche Bundesbank,…