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Mobile payment, a payment is processed by way of a cell phone (Handy; cell phone). – See payment method, innovative, bullet payment, payment, mobile. Attention: The financial encyclopedia is protected by copyright and may…

According to the ECB’s definition – cash (banknotes and coins) and – balances that can be readily converted into cash (overnight deposits) or used for non-cash payments. – M1 accounts for around forty percent…

As defined by the ECB – M1 plus – deposits with a maturity of up to two years and – deposits redeemable at notice of up to three months. – Depending on the degree…

In the ECB’s definition – M2 plus – the instruments issued by monetary financial institutions with marketability. These include, in particular, money market fund shares, money market paper and repo transactions. Due to the…

In older financial terminology, the assets of a partnership (= association of several persons to achieve economic success; corporation). – The respective capital contribution (share) made by a mate (= partner). Attention: The financial…

A company issues bonds with the clause that, in the event of a takeover of the issuer, they must be redeemed at a very high price. The name refers to pasta tubes, which increase…

In banking and the stock market, the final language that all computers must use. Today, this is the binary language. All other program languages must be compiled or translated before they can be stored…

A hedge fund that focuses on expected changes in macroeconomic conditions, such as growth in gross national product, improved unit value ratios or rising exchange rates (a hedge fund that specializes in strategies designed…

Special type of hedging. The risk of loss in a portfolio is hedged by offsetting positions, but without the individual transactions being precisely assigned to one another. – See hedging, hedge accounting, hedging, micro…

A term used to describe supervision that focuses in particular on the smooth functioning of the national or global financial system as a whole. – In contrast, the term “microprudential” refers to the supervision…

An assessment of the stress capacity (resistance to market distortions of any kind) of a bank or institutions as a whole, carried out in the course of macroprudential supervision. This involves assessing the impact…

In former times, the payment for a Mader (Mahder = mower; also called Gräser; reaper: a person who cuts and collects crops), who often hired himself out as a day laborer (Lidl; daytaller =…

The American financier Bernard Madoff, who was arrested in December 2008 and is known throughout the world, played a key role in setting up the Nasdaq technology exchange; for a time he was its…

A term that emerged after 2005 for an approach by the central bank that refrains from interest rate hikes because – these now attract too much public attention, – in the event of an…

A term that emerged after 2005 for an approach by the central bank that refrains from interest rate hikes because – these now attract too much public attention, – in the event of an…

In jargon, an employee of an institution – and generally in a company – who spreads any triviality by circular mail. – See airbag, jack-of-all-trades, behavioral branding, chief copying officer, parachutist, high flyer, contact…

In the financial sector – in general, any written connection to a customer, and – in particular, mass letters to private households and companies not yet part of the customer base, in order to…

In a corporation or fund, the highest contributed interest in money or assets (the leading assets put into an undertaking such as a corporation or fund). – See share capital. Attention: The financial encyclopedia…

Regular open market operation executed by the ECB in the form of a reverse transaction for the purpose of providing liquidity (central bank money) to banks on a recurring basis over a shorter period…

Said in financial journalism for – the happenings on the financial market in the whole country, in the respective provinces, especially in the individual states of the U.S. and then – mostly in comparison…

For a bank – and for a company in general – a business policy that attempts to keep the attained market share and competitive position. Entry into new areas of business or increasing sales…

The period over which the central bank’s compliance with reserve requirements is calculated. – Since 2004, the ECB’s maintenance period has started on the settlement day of the main refinancing operation following the first…

stocks]: In principle, the number of shares representing more than half of the nominal capital of a corporation (ordinary majority). Sometimes, however, the qualified majority is also meant, namely as a two-thirds majority or…

When issuing securities with expected limited allotment – demand exceeds supply – subscribers quote higher amounts in order to – obtain the quantity actually targeted or – sell the security immediately on the oversubscribed…

A widespread practice in underground banking to give inferior offerings the appearance of first-class, highly desirable products through a plethora of corresponding tricks (dodges, tricks). First and foremost, these include time and again –…

Paper money issued in times of war and emergency by local authorities – sometimes also by banks and large companies – especially in Germany; usually intended only for circulation within a specific city or…

Professional body for sworn brokers appointed under public law that existed in Germany from 1896 until the abolition of official trading in 2002. – See Broker, Market, Official, Sensal, Lead Broker. Attention: The financial…

In relation to the financial sector, this is said to be due to the fact that the leading positions there are held almost exclusively by men, and there have been virtually no women up…

Disparaging term for money The [late] Hebrew word) has the secondary meaning that a person is thereby led away from right thinking and feeling and is, as it were, enslaved by money. In various…

Expression for the opinion that money is the determining reality in the world as a whole. – A deep-rooted basic attitude characterized by a focus solely on the possession of wealth without regard to…

An institution established in an offshore financial center to provide for the needs of a corporation or a group through a subcontracted local bank. The managed bank does not necessarily have to be physically…

Unless otherwise defined, in the narrower sense of the term, the revenue-spending economy or, in the broader sense, the long-term planning of public-sector budgets. – See budget, finance, fund management, budget, nonaffection principle, parafiscus,…

The acquisition of a usually (ailing; finanicially stricken) company by a management from outside. Usually a bank, a capital management company or a major investor including a public body supports the purchase of the…

The takeover of a company or individual parts of a company by the existing management together with some or all of the company’s employees. – All circumstances of such a change of ownership have…

Information that accompanies the annual report as part of the financial report. Based on the data for the period under review (reporting period), these disclosures are intended to justify expectations with regard to the…

Agreement established by the German Federal Financial Supervisory Authority (BaFin) in 2003, initially on a voluntary basis, under which large banks submit key accounting items at all levels to the supervisory authority on a…

Payments to the management of an institution that result – by use of various forms of gimmickry – in an intentional misrepresentation of results. The North American supervisory authority (Securities and Exchange Commission) in…

For banks, the supervisory authorities generally prescribe very precise quality requirements with regard to organization and management; cf. for Germany § 24 ff. KWG. These requirements are monitored by the supervisory authority. – See…

Generally, the government regulation of exchange. – See abolition of money, compulsory exchange economy. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University…

Under the German Securities Acquisition and Takeover Act (WpÜG) of 2002, a public offer must be made if a natural person or legal entity or partnerships jointly with other persons own at least thirty…

Usually included in the freight charge to cover the cost of the manifest, i.e., the customs document listing the contents put on a ship. – See ferry fee, ford fee, harbor fee, demurrage, loading…

Regularly used in older financial language to mean “to take an oath of disclosure.” – See bankruptcy, insolvency, bankruptcy, insolvency. Attention: The financial encyclopedia is protected by copyright and may only be used for…

Generally, an accumulated and easily liquidatable asset (reserve for manœuvre purposes, working reserve) in order to be able to act as a buyer in a market if necessary (should the occasion arise), for example…

In the older literature, money that was redeemed from the sale of war booty (war booty and war loot: treasures, valuables and property acquired by force from their lawful owners via looting during or…

According to the definition in Section 255 of the German Commercial Code, expenses incurred through the use of goods and services for – the production of an asset, – its expansion, or – its…

The amount of money formerly payable by a bondman (bondman, villain) for release from serfdom (villainage, peonage: in manorial system a condition of compulsory servitude by which a person is restrained of his or…

In older documents, in general, the delivery of a document and, in particular, the physical delivery of a document to the customer by the bank. – See deed of transfer. Attention: The financial encyclopedia…

Former fee to be paid to the land register office for the production of a topographic map (today’s land registry office). Attention: The financial encyclopedia is protected by copyright and may only be used…

In relation to the financial market, this term refers to charts that attempt to bring indicators about financial or commodity markets – especially in listed securities – into a coherent context. These include, above…

any long-distance undertaking): Bonds with a very long maturity; if not defined otherwise, of fifty years. – Cf. Deutsche Bundesbank Monthly Report, August 2005, p. 39. Attention: The financial encyclopedia is protected by copyright…

The price spread between buying and selling an asset (the difference between the buying-in price and selling price of an asset). – The difference between the issue price and the current price of a…

A procedure related to the application of variation margins. Under this procedure, if the regularly calculated value of the underlying assets falls below a certain level, the central banks may request counterparties to provide…

Unless otherwise defined, this refers to the provision of money or collateral to a margin account. This is intended to cover an unfavorable price movement that has already occurred or is expected (a demand…

Unless otherwise defined, this is understood to mean a low level of earnings in the banking sector of a country, triggered primarily by strong competition between institutions. – However, if banks are hardly ever…

In connection with options transactions, the obligation for the writer of an option to deposit either the corresponding number of underlying assets or other collateral with his bank during the entire term. If the…

In economics, the discount factor at which the present value of an investment equals its cost. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express…

a standing facility of the ECB which counterparties may use to obtain overnight credit at a pre-specified interest rate against eligible assets. – The interest rate on the marginal lending facility is generally the…

a standing facility of the ECB which counterparties may use to obtain overnight credit at a pre-specified interest rate against eligible assets. – The interest rate on the marginal lending facility is generally the…

a measure of how much output increases when CETERIS PARIBUS a factor of production is increased by one unit. Attention: The financial encyclopedia is protected by copyright and may only be used for private…

Indicator showing how many cents private households spend more/less if their equity assets increase/decrease by USD 1 (EUR 1). – In 2002, this figure was around 0.05 in the USA and 0.01 in Europe.…

In economics, for a private household, the increase in saving in response to an increase in income by – one monetary unit or, in another definition, by one percent. Attention: The financial encyclopedia is…

The money or property which a bride brings into marriage (money or property which was given with a daughter in marriage); the dowry. – In older documents also the payment to the lord of…

in American, often also mark = thousand!): Currency unit in Germany from 1871 until monetary union in 1999. The name derives from a metal bar with a stamp (checkmark). Before that, the mark had…

A receipt for – an entrusted object, as a checkroom ticket, or – something paid for, as when entering an event as a receipt for the admission fee (a voucher to indicate that one…

Accounting approach that makes the valuation of risk positions at a bank dependent on whether the corresponding items are funded in the short term, medium term or long term. Regardless of how long an…

In general, the valuation of an asset according to the market price or according to the price of a comparable item (the estimating of the market value of an asset based on the current…

If – no market prices can be determined for a financial product, or – market prices are unreal for the financial market as a whole or for a sub-market or market segment (e.g. panic…

Banknotes that are barely visible to the naked eye and are used by banks for cash withdrawals in general and ATMs in particular. Sometimes, prepared banknotes are also included, which become discolored in the…

Any meeting of supply and demand for goods, means of payment and services. In the normal case, it is assumed that buyers and sellers have a clear overview of what is happening: that they…

In relation to the financial market, the legal umbrella term for insider transactions and market manipulation. Both of these offenses, which destroy the confidence of market participants, have been increasingly restricted in recent years…

Directive published in April 2003 concerning – insider transactions, – ad hoc disclosures, and – conduct of business obligations in securities research, with the aim of ensuring uniform standards of investor protection throughout Europe.…

Regulations for foreign regulated markets and their operators if they wish to grant domestic companies direct market access via an electronic trading system. – Cf. BaFin Annual Report 2007, p. 111 (main content of…

Any misleading conduct by stock exchange members to create the appearance of high sales volume with the aim to attract investors (whichever manipulation of the market by stock exchange members to generate the illusion…

A disguising term for the necessary exit of banks that do not have any sustainable business opportunities. Such institutions already do not achieve an adequate rate of return. But because stricter supervisory regulations will…

Market forces are not effective on the supply or demand side. In addition to a lack of market transparency, this is mainly due to market agreements restricting competition and other forms of unfair competition.…

A fixed bundle of goods and services against which changes in the value of money are measured. If one has to spend more (less) to buy this quantity over time, the monetary value has…

In older financial language, a bill placed at the time of – a sales fair – and this in older documents also called exposition – or – a special trading place, such as cattle…

Unless otherwise defined, banks or specialized traders who bridge temporary imbalances between supply and demand in securities trading, thereby guaranteeing market liquidity. – See counterparty, central. Attention: The financial encyclopedia is protected by copyright…

The market value of shares in an economic area. The market capitalization of the EU stock markets rose from just under thirty percent of gross domestic product in 1995 to just over ninety percent…

In the financial market, this refers to the terms and conditions of an offering of a fixed-interest bearing security that are in line with the usual practices at the time of issue in terms…

In finance, the agreement between mostly large institutions, – in each other’s home country – for example: UBS in Germany / Deutsche Bank in the Swiss Confederation – or – in certain geographical areas…

The forces in a market based on free exchange which tend to determine the activities of each market participant. – With regard to the financial market, the behavior of a bank to fully and…

With regard to the financial market, the assumption that the interaction of supply and demand will always result in a price. – In the financial crisis that followed the subprime crisis, it became clear…

Market expansion, also known as market development, refers to the strategies and efforts undertaken by a company to sell its existing products or services to new customers or new markets. This can be accomplished…

A scarce good – in terms of the financial market: money – is not allocated to the best host: it does not get to where it will achieve the highest productive use (the situation…

All influences and effects resulting from the interaction of supply and demand. In principle, these can be derived from the price laws. The First Price Law states that supply and demand determine price. The…

On stock exchanges in general and on securities exchanges in particular, a price movement triggered by the activity as buyer/seller (the effect that a market participant has when it buys or sells an asset;…

The interest rate currently prevailing for the supply (interest on deposit account) and demand (interest on borrowings) of money on loan for the various purposes and therefore in the individual market segments. Ultimately, the…

The central bank’s correct assessment and evaluation of supply and demand conditions in all sectors of the economy. – As a rule, it cannot be assumed that a central bank is better able to…

The ability to borrow money on the financial market at any time. In the wake of the global financial crisis that followed the subprime crisis, market liquidity suddenly dried up, and central banks had…

The risk of only being able to sell (liquidate) assets that are now available for sale at a significant discount due to exceptional circumstances on the market, such as a bear market: The risk…

A person or company that continuously indicates to the financial markets its willingness to trade for its own account by buying and selling financial instruments using its own capital at the prices it provides…

In the financial market, the monitoring of an issue over its entire term with the aim of smoothing out unusual price fluctuations that unsettle investors. The issuing house often assumes this task and then…

Partial amount of listed bonds – mostly issued by public-sector entities – that is only gradually channeled onto the stock exchange for the purpose of price management. In Germany, such operations are subject to…

In relation to financial markets, fraudulent practices – in relation to the supply, demand or – price of financial products. It also includes – spreading rumors. The term also includes criminal information acts. This…

Fraudulent activities in financial markets are not carried out in the home country, but – abroad and on trading venues there, or – from abroad into the domestic market. The fraudsters believe they are…

A meshed and interconnected structure interacting in many acts of production, financing and distribution that achieves a supply corresponding to buyers’ demands. A necessary prerequisite for this mechanism of action is price stability. For…

Body of the ESCB with the objective of advising the Governing Council and the Executive Board, in particular on the monitoring of developments in financial markets and financial instruments, on the conduct of the…

Unless otherwise defined, a security whose future performance is expected to be in line with a relevant (stock market) index. If the expectations regarding the price trend are higher, the security is referred to…

The term used to describe the activities of a central bank in the marketplace in order to implement its monetary policy. The ECB follows the principle of non-intervention (hands-off) in market activity except for…