English

Monetary value stored on a data carrier. – In more detail, the EU E-Money Directive of 2000 defines e-money as – a monetary value – in the form of a claim against the issuing…

Companies that distribute and/or redeem e-money on a businesslike basis on behalf of – predominantly (predominantly) foreign – e-money institutions and credit institutions. This activity is subject to supervision by the Federal Financial Supervisory…

The e-money Directive 2000/46/EC combined the “cash card business” and “network money business” to form the new “e-money business” category. Accordingly, “electronic money institutions” were included in the KWG as a separate category. –…

The electronic debiting (debiting) of an account. – See payment method, innovative, branch system, Internet bank, card, Metcalfe rule, online banking, prosumer, remote banking, sofa banking. Attention: The financial encyclopedia is protected by copyright…

Unless otherwise defined, an institution in the financial market that introduces – a new product, such as a specially structured derivative, – a new business model, such as online banking, or – a new…

A program jointly developed by the International Monetary Fund and the Financial Stability Forum in response to the subprime crisis and the subsequent financial crisis, with the aim of detecting deficiencies in the financial…

In order to prevent an excessive deficit of a member of the EU, the Commission has the right to issue a warning under Article 126 TFEU. In addition, under Article 121 TFEU, the Commission…

Computational methods aimed at detecting signals of a bear or bull market in asset prices as far in advance as possible (tool to derive signals of an upcoming boom-bustcycle in asset prices). A good…

At the ECB, a system for the management of collateral by the central bank. In the course of this process, liquidity (= central bank money) is provided against collateral which is marked as cover…

A widespread form of contract (drafting of a contract), particularly in the case of company acquisitions, according to which – initially – only part of the purchase price is paid immediately. The amount of…

In the case of a private household, the salary of a Finally, any fringe benefits (any gratuity or other profit or incidental benefit of any kind obtained by the employee if it is money…

An amount paid by a buyer to a seller as a sign of completion of the transaction (a partial payment made to evidence good faith that the buyer will complete the purchase transaction at…

The ability of a company to generate a sustainable, and possible growing, stream of earnings that provide cash flow. – The ratio of capital employed to profit plus interest on a company’s debt. –…

Unless otherwise defined, the present value of the expected future net cash inflows (net revenues: revenues less taxes) from an investment (in machine equipment; in machinery). The total amount depends on – the amount…

The fixed amount of money paid to an employee, usually measured on a monthly or annual basis, not hourly, as wages. – The profit from a business, from a transaction (the total income from…

The fixed amount of money paid to an employee, usually measured on a monthly or annual basis, not hourly, as wages. – The profit from a business, from a transaction (the total income from…

Earnings Per Share (EPS) is a financial metric that indicates a company’s profitability by dividing net income by the number of outstanding shares of common stock. In other words, EPS represents the portion of…

Favorable or unfavorable deviations of actual earnings from forecasts; either for the economy as a whole, for industries or for individual companies. Empirical evidence shows that unfavorable earnings surprises affect stock prices more than…

In financial language, a result that shows neither a gain nor a loss (a situation where nothing is gained and nothing is lost: gains equal losses). Attention: The financial encyclopedia is protected by copyright…

Unless explicitly defined otherwise – net sales – less expenses for inventories sold during the period (cost of sales, cost of goods sold) – less operating expenses. – In other words, the operating income…

Severe tremors of the earth’s body may result in the destruction of large parts of the assets of private households as well as the infrastructure of the affected area. As a result, they also…

In reference to the financial market in general and the stock market in particular, this refers to a minor and slow decline in the price of a financial product. – See stock market crash,…

Background music from loudspeakers in a bank. In this way, an “oppressive atmosphere” is supposed to be lightened in the rooms. – Whether this goal is achieved in this way remains questionable. Meanwhile, customers…

Abbreviation for Earnings Before Interests, Taxes, Depreciation and Amortization; this refers to operating profit before – interest payments on borrowings, – taxes (tax expense), – depreciation on plant and equipment and – amortization on…

In a narrower sense, the European Central Bank in Frankfurt am Main and its bodies as an institution. – In the broader sense, the European Central Bank and the national central banks of the…

The obligation of the ECB, as a self-governing institution not subject to parliamentary control, to inform the public about its activities. According to the unanimous opinion of even its critics, this has been done…

During the financial crisis that followed the subprime crisis, the ECB’s balance sheet total ballooned from EUR 900 billion to over EUR 2,600 billion by spring 2012. This figure has almost tripled since 2007.…

At mid-year 2013, the proportion of female staff at the ECB at the middle management level – heads of division, deputy heads of division, section heads, advisers, senior advisers – was seventeen percent, and…

As of January 2015, the Governing Council will generally meet every six weeks. Non-monetary policy meetings will continue to be held at least once a month. The reserve maintenance period will also be extended…

The members of the Executive Board of the European Central Bank and the central bank governors of the member states that have adopted the EUR. The decisions of the ECB governing council are usually…

The ECB is granted independence by the Treaty of Maastricht formally, namely from a purely legal point of view, a secure independence. This is because its statute, namely the “Protocol on the Statute of…

In financial parlance, the ECB’s 2009 decision to stand in support of non-saleable sovereign bonds issued by member countries. – Article 123 TFEU and Article 21 of the “Protocol on the Statute of the…

Regularly recurring demand that the ECB should release the minutes of the respective meeting of the Governing Council. A distinction has to be made between – a stenographic (stenographic: account in writing) or –…

A new building complex planned in the Ostend district of Frankfurt am Main from 1998 to meet the requirements of the European Central Bank. By purchasing the land, the ECB undertook to preserve the…

Under EU law, the ECB may suspend counterparties if they fail to fulfill their obligations vis-à-vis the ECB. These include in particular – violations of the tender rules or the rules for bilateral transactions.…

The time of the place where the European Central Bank (ECB) is located, namely Frankfurt am Main (Francfort on Main). Attention: The financial encyclopedia is protected by copyright and may only be used for…

Group of German experts that has set itself the task of: – evaluating the ECB’s policies in a transparent manner, and – raising public awareness and understanding of monetary policy in general and the…

The Inflation Persistence Network (IPN) started its activities in 2003 with the aim of examining in greater depth the very specific links in the euro area between price and wage developments, on the one…

Formerly a payment for the right to allow pigs to graze in the forest at certain times, usually calculated by the number of sows brought in. Ecker = here: Acorns and buckeyes; eckerich =…

When assessing an investment decision, ecological characteristics are also or even exclusively weighted. Companies with a special emphasis on sustainability (sustainability: a term from forestry; a forester maintains his forest sustainably if he only…

A benchmark now also used by banks to increase sales while reducing materials used and emissions (strategy that targets minimising ecological damage while maximising efficiency of the banking services, such as through the lesser…

The Council of Ministers of the European Union in the composition of the ministers of economics and finance. The Council has an influence on monetary policy in that the guidelines for growth and employment…

A fund that invests its assets exclusively or mainly in the securities of companies that are particularly committed to the sustainable strategy. – See investment, ethical, sustainability, eco rating, sustainability fund, triple bottom line.…

Also an important leading indicator for the ECB’s monetary policy; calculated by the European Commission as a barometer of business sentiment for the EU as a whole. It is based on a monthly survey…

Special government spending to stimulate demand in individual sectors or in the economy as a whole. The money used for this purpose must either – be taken from other areas of responsibility (portfolios, departments)…

The value from the result and the cost of capital – including the opportunity cost of equity – from an engagement within a period of time. If this ratio is negative, capital has been…

The – sometimes also male gender, so then the – ECU was defined since 1979 as a currency basket, which consisted of fixed shares of twelve of the fifteen currencies of the member states…

Credit institutions are required by regulatory law to establish adequate safety precautions against computer failure, computer misuse and computer crime; see, for Germany, Section 25a KWG. – See outsourcing, Federal Office for Information Security,…

EU member states and currently (in spring 2014) the three states Iceland, Liechtenstein and Norway. The EEA does not include Switzerland: instead, there are a number of bilateral agreements with Switzerland. – European Economic…

stock) quota: Term used in the investment policy of insurance companies. It is understood to mean the proportion of total investments accounted for by shares held directly and indirectly, primarily through equity funds. Attention:…

In older financial language meaning: to execute a (financial) order; to consummate a (financial) transaction; to realize a commitment, to bring a transaction to completion. Attention: The financial encyclopedia is protected by copyright and…

A term that has also been used more and more frequently in the financial world in recent years, but which is nevertheless imprecise. – In detail, a precise distinction must be made between –…

A caveat often included in contracts on the financial market. It states that the business partner will make every effort to achieve a good result. However, he cannot guarantee the success of a transaction…

Payment system used primarily in the retail trade. When cash cards are used, the payment data is recorded in data terminals, forwarded electronically to the account-holding bank and processed there. – See rejection, community…

In the past, an income from poultry keeping on the farm, which was often paid to the farmer’s wife through a marriage settlement (antenuptial agreement) and which she could use freely (in part). –…

Supervisory authority in Switzerland for monitoring the provisions of the Banking Act and the Investment Fund Act; merged with the Swiss Financial Market Supervisory Authority. Attention: The financial encyclopedia is protected by copyright and…

First great depression in the U.S. in 1819, which had a favorable effect on the hitherto rather neglected theory of the business cycle; however, many of the ideas put forward at the time were…

Anyone wishing to conduct banking business or provide financial services on a commercial basis in Germany, and who requires written permission from the supervisory authority to do so, may not operate their business in…

Old term for a worn, worn-through coin. – See wear, alliage, doublé coin, counterfeit, squeezed, show money, cat money, tipper, solderability, coin, coin paradox, passing weight, quaadschilling, knurling, rough weight, remedium, subferrates, wardein, wipper.…

In older financial parlance, the shedding of an asset by sale; the streamlining of an asset pool (total assets, estate) and said specifically in reference to a securities portfolio. – See downsizing, portfolio rebalancing.…

The difference between the buying rate and selling rate of a financial product. – The difference in price between the bearer shares and the registered shares of a stock corporation. – The difference in…

In general, the percentage change in one variable given – CETERIS PARIBUS – a one percent increase in another variable. – Price elasticity is the change in quantity divided by the change in price…

A term used on the stock exchange to describe securities issued by companies in the electricity industry. The distinction is difficult to make in detail because, in addition to processing companies in the industry,…

Market participants who trade and/or broker electricity futures contracts on the exchange – for example, on the European Energy Exchange (EEX) in Leipzig: in spring 2007, two-thirds of the market participants there, with more…

Market participants who trade and/or broker electricity futures contracts on the exchange – for example, on the European Energy Exchange (EEX) in Leipzig: in spring 2007, two-thirds of the market participants there, with more…

As an important cost component in the calculation of companies, the markets for electricity and gas are closely monitored by the central bank, also with regard to differences within a currency area. – See…

As an important cost component in the calculation of companies, the markets for electricity and gas are closely monitored by the central bank, also with regard to differences within a currency area. – See…

The possibility of loss due to the fact that the supply of electricity experiences an interruption. Because electricity is used in almost every business and across all industries – and also by the police…

The possibility of loss due to the fact that the supply of electricity experiences an interruption. Because electricity is used in almost every business and across all industries – and also by the police…

Anyone who provides banking transactions or financial services involving electricity derivatives. In Germany, such traders are subject to supervision by the Federal Financial Supervisory Authority. – See Derivatives transactions clearing obligation, Derivatives transactions reporting…

Anyone who provides banking transactions or financial services involving electricity derivatives. In Germany, such traders are subject to supervision by the Federal Financial Supervisory Authority. – See Derivatives transactions clearing obligation, Derivatives transactions reporting…

Services of a bank that are used by customers outside the brick-and-mortar branch system. The growing importance of this business area entails a number of legal risks for a bank in addition to settlement…

Working group of the Basel Committee on Banking Supervision with the purpose of identifying deficiencies in electronic banking and determining any need for supervisory action. – In addition, the ECB is also making a…

In the case of transportation companies, the possibility of having the ticket printed by inserting a card to debit the amount. – See Community Card. Attention: The financial encyclopedia is protected by copyright and…

In jargon, the courting of a political body to settle by a major corporation (alluring a major corporation to move into a community, stimulating economic development). For example, the U.S. state of South Carolina…

In jargon, an engagement that is so costly to maintain or operate that it is impossible to make a profit even in the foreseeable future. – The term is often used in connection with…

Credit quality class required when pledging collateral to the central bank. – At the ECB, securitized securities that meet the eligibility requirements are also included in principle. However, in the case of asset-backed securities,…

Securities which German insurance companies are permitted by law to include in their reserves – for which there are special provisions regarding investment and structure. – See cover pool. – Cf. BaFin Annual Report…

Internet portal with the purpose, similar to the Internet auction house eBay, of bringing together lenders and borrowers of loans via its website. Private lenders and borrowers must first become members and enter their…

Unless otherwise defined, any of the former obligations (duties; soccage duties; Fron = the lord) of a serf (villein) – converted (monetized; monetized) into a one-time or periodic payment – to the indirect and…

Lending fee charged to the recipient of goods packaged in containers, casks, bins, glass balloons (in the case of liquid chemicals; liquid chemicals), pallets and elaborate boxes (as in the case of porcelain; porcelain),…

Form of securitization in the insurance industry. In this case, the risk from a life insurance portfolio (pool) is transferred to a special purpose entity, which acts as a reinsurer. The special purpose vehicle…

On a debt instrument in general and a bill of exchange in particular, the indication of an address which stands in for the obligor in the event of non-payment. – Papers with an emergency…

In the context of the euro area, the exit of a member from the monetary union if circumstances arise that cause great damage to the economy of the state due to its membership in…

In the wake of the financial crisis following the subprime crisis in 2009, German institutions initiated a special fund to support banks in a crisis situation. The fund was to be jointly funded by…

At the ECB, the possibility for fundamentally solvent but temporarily illiquid institutions to be provided with cash by the domestic central bank against the deposit of corresponding valuable collateral. In the course of the…

Paper money – or, more rarely, coins – issued as a substitute by cities, counties, provinces and other public-law corporations, even by banks and companies, when there is a shortage of means of payment,…

Uniform telephone number – in Germany since mid-2005 the number 116 – where users of lost cards of all kinds are put through to the respective issuer of the card. – Cf. Deutsche Bundesbank…

Unless otherwise defined, a bank’s holdings of first-class, highly liquid securities, ensuring that it remains solvent even if refinancing markets collapse. – During the financial crisis that followed the subprime crisis, the emergency reserve…

Organizational instructions and technical facilities at an institution that ensure uninterrupted business operations (business continuity) even in the event of a failure of information technology facilities. The supervisory authorities generally prescribe such precautions. In…

Regulation introduced in health insurance in 2013. According to this, insured persons who do not meet their obligation to pay premiums even after a legally defined reminder procedure are transferred to a special tariff…

Designation for countries – which lack political stability, – which have a backward infrastructure in the financial sector as a whole or in individual areas, but – which nevertheless have long-term economic growth potential.…

Countries in which a regular exchange of goods has usually not yet fully developed and become firmly established within the country, and which initially play only a minor role in the overall international exchange…

Countries in which a regular exchange of goods has usually not yet fully developed and become firmly established within the country, and which initially play only a minor role in the overall international exchange…

In older financial parlance, income that is regular but fluctuates in amount, usually related to official fees-such as those of a surveyor-or to current incidental income (extras, persiquites, discretionary earnings). – See douceur, extra…

Coins made of metal with – the effigy of an emperor, – in a broader sense also said in reference to the superior ruler. – Coins with the image of the Roman emperor on…

Employee engagement refers to the level of an employee’s commitment, passion, and emotional connection to their work and to their employer. Engaged employees typically feel a strong alignment with the company’s values and objectives,…

Rules of conduct for the staff of a bank. They are intended to prevent – employees from using their position (insider knowledge) unlawfully for their own business interests and – from acting against the…

A company grants its employees the opportunity to acquire ownership rights in the company itself or in a related company. Particularly in the case of new business starts (start-ups), this may reduce the wage…

Employee productivity is a measure of the efficiency of a worker or group of workers. It’s typically assessed as the amount of work (output) produced over a given period of time (input). Companies often…