English

Earlier payment to the lord of the manor to redeem the obligation (Fron; soccage) to deliver a certain quantity of oats (Haber; oat). – See redemption, freikaufgeld, Frongeld. Attention: The financial encyclopedia is protected…

granting of a loan for the procurement of objects – such as: Ship, aircraft – where the settlement of the receivable depends on the cash flow from the object financed and pledged or assigned…

Any debt obligation structured as a security with a fixed or variable interest rate and a given maturity; other term for bond. – A debt relationship between two persons. The one who owes is…

The obligation of citizens to accept the legal tender introduced by the state in the form of coins and notes. – See cash, validation, dollarization, cryptocurrency, money ownership, money functions, money reflux, capital flight,…

Under the EU regulation, standardized OTC derivatives have had to be cleared via a central counterparty since August 2012. – Non-standardized OTC derivatives (i.e., contracts that are concluded individually between a buyer and seller…

In countries with a precious metal currency, the legal requirement that an institution issuing banknotes must exchange this paper money for gold or silver at the request of anyone – “without verification of identity,”…

If the price of the securities pledged to the ECB falls below a predetermined limit, the borrower must reinforce the deposit with additional securities. – Particularly in the case of credit cooperatives in Germany,…

Since February 2014, all companies have been required under Art. 9 of the European Market Infrastructure Regulation (EMIR) to report – the conclusion of new and – the restructuring or – early termination of…

In Germany, insurance companies must report irregular practices by their insurance agents and office staff to the Federal Financial Supervisory Authority. The list of offenses to be reported includes theft, fraud, embezzlement, misappropriation of…

In Germany, insurance companies must report irregular practices by their insurance agents and office staff to the Federal Financial Supervisory Authority. The list of offenses to be reported includes theft, fraud, embezzlement, misappropriation of…

A term frequently used in older financial language with various meanings. – Generally, a binding obligation of any kind, an obligation, a debt (the state of being under a debt, as for lending money,…

At the time of Jesus in Greece, a small coin worth eight chalkoi; six obols were equal to one drachma or denarius. – Today often still designation for a smaller amount of money, in…

In old documents, (high-)interest loans that colonels – at that time generally said of military commanders of more than 4,000 to 5,000 men – lent to merchants and, more rarely, to private households, usually…

Linguistic formula in central bank pronouncements indicating an impending increase in the policy rate. – See information, market-sensitive, ECB minutes, publication, open-mouth policy, vigilance, high. Attention: The financial encyclopedia is protected by copyright and…

Coins struck in a city surrounded (beleagured) by an enemy master. – See substitute money, substitute coins, emergency money, numismatics. Attention: The financial encyclopedia is protected by copyright and may only be used for…

In older documents, a voluntary, extraordinary donation, especially to a parish or monastery (an occasional [religious] offering). – See charisterium, ecclesiastical money, offering money, St. Peter’s penny, endowment fund. Attention: The financial encyclopedia is…

The obverse of a coin as opposed to the reverse, the back. – See Eteostichon, Millesime. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express…

England’s own supervisory authority for pension funds. The best practices developed by the authority were and are also exemplary for pension funds outside the United Kingdom. – See Retirement Assets Act, balance sheet, holistic,…

In the jargon of the financial world, often bitingly said of – the central group management of a large, globally active institution or – a supervisory authority, more rarely also – in reference to…

In general, a tax on consumer goods, especially foodstuffs, levied in the past with the permission of the state or sovereign in some towns in Europe, often requiring a certain amount to be paid…

Kleinmenge and Fraktion): Stock exchange order in which the number of securities to be bought or sold is small; in the U.S. usually less than one hundred shares or, in a narrow market, ten…

A charge added on to the normal commission charge by the broker when a small lot is purchased on the exchange because such orders usually involve additional costs (a fee attached on to the…

The assumption that small investors always decide emotionally and therefore act at the wrong times on the stock market – and especially when buying stocks. Therefore, if – many retail investors buy when prices…

Under Basel I, banks had to meet lower risk management requirements for borrowers from OECD countries. This concession, which can hardly be justified on factual grounds, was dropped under Basel II. – The OECD…

Banking transactions that were generally not required to be recognized on the balance sheet until the entry into force of International Accounting Standards in 2005 or the introduction of Basel II at the beginning…

In relation to banks, receivables and liabilities listed in detail in Section 19 of the German Banking Act (KWG). Attention: The financial encyclopedia is protected by copyright and may only be used for private…

In the case of a bank, the extension of credit to corporate customers who purchase goods not during the peak season (extension of credit for corporate customers who make frequent purchases and not just…

In regulatory terms, the case where two or more bidders submit an offer to acquire a target company. – See Acting in Concert, Persons Acting Jointly. – Cf. Annual Report 2010 of BaFin, p.…

Contractual agreement commonly used in credit insurance, according to which the policyholder must disclose his debtor (i.e., the customer to whom he is taking out insurance against a credit event) to the insurer for…

In the early Christian service, the celebration of the Mass, the faithful went to the altar to make an offering in kind. From the 12th century, a monetary contribution became common. The offering was…

Unless otherwise defined in financial language, rumor, gossip, ondit, whispering and whispering from the various departments of a bank (the informal networks of communication that exist in any organization and, therefore, in a bank):…

In the U.S., supervisory authority assigned to the Department of the Treasury for the so-called “national banks,” namely credit institutions that registered with the U.S. federal authorities. – See Supervisory authorities, non-member bank. Attention:…

In the wake of the financial crisis triggered by the subprime crisis in 2009, the U.S. Office of National Insurance (OoNI) was set up at the Federal Department of the Treasury in Washington to…

In the U.S., the supervisory authority for savings & loans associations, which is part of the U.S. Department of the Treasury. – See Supervisory authorities. Attention: The financial encyclopedia is protected by copyright and…

The possibility for a supervisory authority to order an audit of a bank’s accounts by civil servant auditors, who are also assigned to the supervisory authority if possible, in cases of suspicion. This is…

A publicly appointed person who is responsible for price fixing on the stock exchange. – In Germany, since 1896, these persons have been at the center of stock exchange activity and are organized in…

Segment of German stock exchanges precisely defined in the Exchange Rules; until 2002 called official trade; see Sections 29 ff. Stock Exchange Act. Securities traded on the official market must comply in all respects…

In Germany, the trading of securities admitted to official listing on stock exchanges. Price determination is carried out by official brokers and is published on each trading day. For securities included in this form…

The usual, representational work activity (normal workflow) in the financial market, the reality of day-to-day business (CH: Courant normal; real-life of day-to-day business operations); usually understood in contrast to online banking, namely, the conduct…

Unless otherwise defined, the conduct of monetary transactions and the management of assets not in one’s home country but in another country, such as Switzerland or Singapore. Reasons for this, in addition to greater…

The settlement of transactions not within one’s own currency area, but via offshore financial centers (a financial center outside the own country used by banks to book certain deposits and loans, often with the…

Territories (jurisdictions: authorities of a sovereign power to govern or legislate) in which the financial sector accounts for a significant and disproportionate share of economic activities. – According to another definition, territories in which…

Mutual funds offering their shares to persons resident outside the country in which the respective issuer is incorporated. – Financial instruments of any kind issued in offshore financial centers (OFCs). Because competition for deposits…

Transactions of German banks abroad with the primary purpose of evading taxes due on the same activity in Germany. Often, this also includes the escape from monitoring money laundering. – Although so-called “investigative journalists”…

Unless otherwise defined, the relocation of operational tasks abroad (movement to a location in another country of some part of a firm’s activity, usually a part of its production process or, frequently, various back…

A contract under which an obligation to pay arises even if the agreed delivery does not (yet) take place (an agreement between a producer of a resource and a buyer of a resource to…

Information on consumer prices for petroleum products published by the statistics & market observatory of the European Commission in Brussels (the European Commission created the market observatory body to attain a better insight into…

The price of crude oil will tend to rise in view of: – the long-term increase in global demand, especially in China, Brazil and India, coupled with inelastic supply; – the technically limited scope…

Unexpected increases in world crude oil prices have so far had a significant impact on output, growth, employment and financial stability in industrialized countries. Monetary policy has to react accordingly; however, it is very…

Shares and other securities issued by oil producing and distributing companies. – See Offtake Agreement, Oil Price. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without…

The reduction of the price of petroleum (products) on the domestic market by means of – direct subsidies from public coffers or – (temporary) reduction of excise taxes on petroleum with the intention of…

A term that emerged around 2000 to describe the fact that global prices rise in (almost) all sectors of an economy when the price of oil increases. This is because oil is processed in…

If crude oil becomes scarce worldwide and therefore expensive, then instead of diesel-powered agricultural engines, people will often have to sow, tend and harvest agricultural products by hand again. Productivity (the ratio of factor…

Description of the relationship between growth in output and unemployment in an economy. If growth rises above a level determined as normal in relation to an economy on the basis of long data series,…

Financial services with the affluent elderly group of people. – See all-age products, best agers business, dinks business, denture investment, money people, polyplusius, private banking, singleïsierung, silver economy, woopee business. Attention: The financial encyclopedia…

With reference to the financial market in the sense that it is determined by only a few actors. – This is demonstrably false for Germany. Here, independent, locally based savings banks with a market…

Persons active in the financial market who mediate in disputes between companies and consumers. An EU directive (alternative dispute resolution, ADR) specifies uniform minimum requirements for the activities of ombudspersons. – See conciliation body,…

A (securities) financial services provider does not hold the funds received in the customer business separately according to individual principals, but – possibly even with other items of the company – in only one…

Agreement reached by the trilogue parties in the course of implementing Solvency II, containing a number of amendments to Solvency II. – See Quick Fix. – Cf. Annual Report 2013 of BaFin, p, 118…

In the philosophy of money, the doctrine that money, as a result of – its worldwide presence, – its property of making all things equal, and – its ability to exchange them (purchasing power)…

Popularly used for a coin or banknote of the respective currency unit, i.e., a EUR, USD, or GBP (in England widespread among City traders, and before in the armed forces during the 2nd World…

Since the beginning of 2010, there has been an increase in the number of unwanted one-cent transfers to the accounts of private households. The senders of this gift are – annoying advertisers who want…

A bank – such as Credit Suisse – or a group of institutions – such as: Savings banks, Volksbanken – appear on the market only under a uniform name and only with a single…

A business policy principle of large, internationally active banks and insurance companies, according to which every employee worldwide should know all the services of the institution and can therefore also make them easily accessible…

Initiative, mainly in Italy and Greece, to bring banknotes worth one EUR into circulation in Euroland. In both countries, coins were virtually unknown before Greece joined the monetary union in 2001. – The ECB…

In financial jargon, the sudden, unexpectedly strong sale of a financial product, without, however, the propensity to buy lasting and therefore not resulting in subsequent purchases (post purchasing, further orders). – See High Flyer,…

short-term investment): In relation to the financial market, an extremely short engagement in terms of time and solely for the sake of making a quick profit; usually with the secondary meaning that the investor…

Formerly a levy on the sale of real estate; forerunner of today’s real estate transfer tax. Part of the proceeds often went into the poor relief fund. – See Ärariengeld, Armengeld, Ehrschatz, Fallgeld, Handgeld,…

The central bank is required to cover one-third of the banknotes issued in gold. In Germany, this was required of the Reichsbank under the Banking Act of March 14, 1875. – See banking theory,…

(Jewelry) objects made of a metal mixture containing one-third gold, i.e. 8 carats. Unlike in most countries of the world, in Germany corresponding goods may still be called “gold” without further ado and jewelry…

In the case of the Governing Council, the fact that the vote of each participant carries equal weight, i.e. without regard to the weight of the respective economy. A national central bank that wants…

Doing banking business on the way via the Internet, in seconds and at favorable fees. Banks usually provide appropriate banking portals for this purpose. – Online banking facilitates the entry of foreign banks into…

According to the EU Directive on Dispute Resolution in the Financial Market, providers must provide precise information on their website to enable free online complaints. Any complaint must be processed within 90 days, even…

The customer accessing the institution’s services via a bank portal (a person who uses the Internet to come in touch with the service of the bank). – See Internet bank, online banking. Attention: The…

Kuwait, Dubai, Bahrain, Singapore – the proportion of assets invested there by residents is increasing, and some of these residents are also withdrawing the amounts they invested in the course of offshore banking in…

In the wake of the financial crisis that followed the subprime crisis, North American automaker General Motors (Detroit, Michigan) ran into sales difficulties. This affected the German subsidiary Adam Opel (Rüsselsheim, Hesse) and its…

Generally, a standardized contract between two or more parties to perform or refrain from performing a service – such as the delivery of a certain quantity of crude oil. However, the contract is still…

Generally, a current account between two contracting parties, whereby they – defer their mutual claims (grant respite for mutual claims), – offset them against each other at contractually agreed intervals, and – then settle…

The number of outstanding option contracts which have neither been exercised nor reached expiration for a particular asset at a particular time; it is regarded as an important indicator in regard to the expected…

Monetary policy intervention carried out on the central bank’s own initiative in the financial market. – In the context of the ECB, open market operations comprise the following transactions: – outright spot and forward…

Procedure used by the Deutsche Bundesbank since mid-November 2005 for bids and allotment notices in the course of open market operations; the system enables a synchronous (concurrent in time; simultaneous) exchange of information. It…

In exchange parlance, an order by a customer to buy or sell that has not yet been executed. – See execution, complete, fill-or-kill order, iceberg order, open contract, stack of cards, order, valid for…

– First, it refers to the direction of acting of the central bank, which opens up and goes to the market. – Second, it refers to the market that is open to the public…

On the stock exchange, the period shortly after the opening of the trading session and the prices achieved within this phase (opening prices; opening quotations; opening = the period at the beginning of the…

Operating Cash Flow (OCF), often referred to as cash flow from operations, is a measure of the amount of cash generated by a company’s normal business operations. It indicates whether a company is able…

In older documents also said for – business operation; according to § 14 AO explained as – an independent (self-employed) continuing (enduring) activity, – through which income or other economic benefits are obtained and…

In stock exchange parlance, the sale of subscription rights with reinvestment of the proceeds in shares. – More precisely, in the case of an ordinary capital increase, the shareholder sells just enough subscription rights…

The ratio of income from operations to income from operations. This corresponds to the difference of one minus the cost/income ratio and, if interpreted cautiously, can provide certain information on the cost situation of…

Operations carried out by the ECB primarily to adjust the basic liquidity position of the financial sector vis-à-vis the ESCB. Specifically, these operations are: – fixed-term contracts; – outright transactions; and – the issuance…

The authorization by the competent authority according to law to conduct business (the legal permission to conduct business in a distinct field). – See Permit. Attention: The financial encyclopedia is protected by copyright and…

In older documents, a school fee payable by pupils who lived at home with their family and attended a boarding school (boarding school: a school where pupils are provided with meals and lodging) located…

The disadvantage of not being currently available in the market for an engagement. – See opportunity costs. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without…

Lost return from not making another (shadowed, better, more opportune; more favorable, more effective) investment; in other words, the lost profit from missing a more favorable opportunity, hence also called opportunity loss. – For…

a capital management company that does not focus on specific lines of business – such as: Precious metals, securities, corporate investments – or geographic areas – such as: Europe, China, USA – but makes…

It is undisputed today that there are no generally valid formulas to determine the best size of a bank for the success of its business. It can be empirically proven that there are successful…

Said above all by banks that promise shareholders returns that – in view of the economic facts and in view of the profits achieved to date by the institution or the industry – are…

Unless otherwise defined, at an institution, a procedure for calculating the cost-effective settlement of a customer order (relating to order processing a procedure determining the efficient and cost-effective settlement of a customer order). –…

In relation to the EU Treaty, the restriction that a member such as the United Kingdom or Denmark is not also obliged to adopt the EUR. – See hasty entry, euro area, euro area,…

A financial derivative in the form of a conditional forward transaction, i.e. a contract which – for the buyer (holder) contains the right, but not the obligation, – either on or by a specified…

The change in the value of an option, given a one-percent change in the value of the underlying. – See elasticity, option value. Attention: The financial encyclopedia is protected by copyright and may only…