English

A trust (trust; here: Legal institution in which assets are set aside for a specific purpose and placed under the tied [= law-dependent, law-accessory] administration of a trustee) into which an employer pays a…

In the case of a stock corporation, the constant monitoring of the turnover of its own shares on all stock exchanges on which the security is listed for trading, in order to detect at…

Printed final documentation published in 1959 of the findings of a committee set up by the British government in April 1957 with the task of investigating the working of the monetary and credit system.…

In general, a machine-based process for searching for and recognizing objects and people via radio. – Special payment procedure for car drivers (CH: Automobilisten) first introduced in the USA by the companies Exxon and…

In older Documents a public list of traders admitted to a stock exchange. – In Switzerland, until 2004, a reference work in which the commercial register entries of companies were displayed in a summary.…

Generally, an individual or corporate investor who attempts to acquire other firms in an unfriendly takeover. – Raiding in relation to banks is less likely because the supervisory authorities generally hardly allow it. In…

If not otherwise explained, the collapse of several railroad stock corporations in Europe beginning in 1847 due to (by reason of) overindebtedness. Many companies budgeted the construction costs too low and therefore used up…

Paper money issued in the 19th century by railroad companies in Germany with official approval. This private paper money was gradually withdrawn with the establishment of the German Reichsbank from 1875. Today, such bills…

A conditional forward contract with two or more underlying assets, called colors, which have the same type risk factor, such as two stock indices or two currencies. – See option, composite, risk. Attention: The…

In financial jargon, a manager, valuable employee or subcontracted person who brings new business to a company. – In the case of a bank in particular, also an employee who brings a large amount…

On the stock market, a condition of usually only briefly sharply rising prices, a runup when prices tend to fall (investors break a downward trend in prices, in relation to shares, bonds, etc., and…

In financial jargon, a procedure in which a targeted increase in charges is not implemented all at once. Instead, the approach is to take several steps over a period of time that is hardly…

The view that on stock exchanges, prices are fundamentally unpredictable from past performance. It thus opposes the viewpoint of the so-called chartists, who try to justify statements about the future price trend of a…

In statistics, the assignment of elements of a sample to different (experimental) groups according to random selection (according to the principle of coin toss). – In monetary policy, a mathematical procedure aimed at explaining…

A ranking and, in particular, in the financial market, the (by whom and how; made by whom and how?) Classification (position on a scale in relation to others) of institutions. However, because they are…

In older documents – generally a payment for the repurchase of a thing or – for the redemption (ransom, release) in the sense of a ransom and redemption money. – In the case of…

In older documents, a cash book (Rechnungsbuch; account book) in which receipts and expenditures were entered. – See secret book, clade, memorial, strazze. Attention: The financial encyclopedia is protected by copyright and may only…

Short term for loans to companies where the bank includes the risk in particular in the profit planning (from the English Risk Adjusted Return On Capital). Medium-sized companies – 3.3 million in Germany with…

Share that private households in larger cities used to have to contribute to the costs of rat control and the extermination of harmful rodents (nocent gnawers). – In the youth language today also often…

In older financial language, the proportionate share of a person, company, or even a municipality to raise a larger amount. Attention: The financial encyclopedia is protected by copyright and may only be used for…

In financial terminology, the amount of a charge or payment relative to some basis, such as an interest rate, percentage, contribution rate, collection rate, or tax rate. Attention: The financial encyclopedia is protected by…

Percentage breakdown of borrowers in total, either from a single bank or from credit institutions within a country. – Breakdown of loans to enterprises usually by size of enterprise, and here then counted by…

If not explicitly defined otherwise, this is the ratio of profit, usually expressed as a percentage, to the amount of money (capital, investment) invested over a period of time; in older economic literature also…

The price prevailing at the time of incurring a liability or acquiring a receivable – especially with regard to positions in a foreign currency. – See valuation, fair value, mark-to-market approach, market price, matching,…

Within a bank, the grading of debtors according to their creditworthiness and borrowing capacity. – The public rating of the creditworthiness of an economic entity (government, company) by independent agencies. The result of the…

In the context of rating, the property of an applied method to correctly identify good and bad exposures in advance. It is proposed that efforts to improve rating accuracy will be hampered by a…

In the context of rating, the property of an applied method to correctly identify good and bad exposures in advance. It is proposed that efforts to improve rating accuracy will be hampered by a…

The arranger, acting on behalf of a special purpose entity, first unpacks the pool of asset-backed securities handed over to it by the originator. – With the help of a rating agency’s experts, the…

Following the financial crisis that followed the subprime crisis, a demand arose for independence from the globally active U.S. rating agencies (Standard & Poor’s, Moody’s, Fitch: the latter is majority-owned by France) and the…

An organization that evaluates the probability of default on debt securities traded in the market. The rating is essentially expressed in letters. This rating is essentially expressed by letters. AAA (triple A) stands for…

The demand, which has been increasingly voiced in the wake of the subprime crisis, for rating agencies to disclose their rating models in detail to the supervisory authority by law or regulation. – However,…

Changes in the rating of financial products by rating agencies. – Past experience has shown that the rating of derivatives is more consistent than ratings for corporate bonds. However, downgrades of several notches are…

Institution set up by German banks with the aim of – aligning their respective internal credit rating systems, – aligning them with the requirements of Basel II, and – asserting themselves in the long…

Following Basel II, four individual measures are mentioned by the bank in the course of the rating process, namely – identification: assigning the customer to a rating class, – measurement: each rating class is…

Regulation by a supervisory authority requiring banks to have their borrowers’ creditworthiness (credit ranking of the debtors) assessed by an independent rating agency, i.e. not internally. In this context, it is also necessary to…

Consent of a supervisory authority to use a bank’s own risk measurement methods. Under Basel II, such methods may be recognized. – Other term for shadow rating. – See Bank customer profile, debtor management,…

The proposal to deprive private rating agencies of their power to rate countries and to transfer this power to the ECB, at least for Europe. – It is highly doubtful whether this would serve…

Used in relation to investors in the sense derived from psychology, namely that a purely emotionally acting investor, after purchasing an asset, puts forward factual reasons regarding his decision for himself and also to…

The central bank or supervisory authority imposes general or detailed requirements (specifications) on banks when lending to real estate buyers. In England, this measure was applied in the summer of 2014 to ward off…

The – hasty rise in commodity prices, especially for oil and metals, and in particular for copper, – which can hardly be explained by normal supply and demand conditions on the respective market, and…

The provision of money to – discover (prospect; discover), – mine (to quarry, to mine), and also – distribute and transport extracted raw materials. – At the end of 2010, about sixty percent of…

assets of a capital management company invested in securities of companies providing goods for further processing or refining, mainly – extraction of mineral resources such as metals, coal, oil or rock salt, – agricultural…

speculative transaction on the commodity exchange to anchor input prices during processing. – A mill, for example, sells the raw material just stored at a certain price – assumed: 10 GE – to a…

Price changes in internationally traded raw materials that affect the costs and thus also the profits of a company (raw material prices risk is linked to the fluctuations in commodities markets as oil, sugar,…

In Europe, a procedure whereby the original denomination of a security issued in a national currency is changed to EUR at the irrevocably fixed conversion rate. Attention: The financial encyclopedia is protected by copyright…

In general, the stagnation within a longer phase of market development in the same direction; – In particular: Price setback on the stock exchange after a longer bull market. – See bear market, rally.…

In the context of monetary policy in general, the propensity of a central bank to take certain actions. – As history has shown, public pressure on an independent central bank in no way strengthens…

A term frequently used in financial journalism, but one that is unclear without further explanation. Basically, it means that investors are willing to invest instead of hoarding money. However, it is not clear who…

Unless otherwise defined, this refers to the national economy’s fixed assets, the capital stock (the physical assets in a national economy used to produce goods) – See investment, physical capital, assets. Attention: The financial…

The further mortgaging of a property already financed by mortgages. This was possible mainly in the U.S. until the subprime crisis. – See home equity loan, Home Mortgage Disclosure Act, real estate loan restriction,…

Unless otherwise defined, this refers to residential real estate owned by households, including the value of the land on which the buildings stand. – Real estate assets account for about sixty percent of the…

Term that entered the German language around 2000 for the totality of all services related to the financing of land and real estate. – See Bausparkassen, Betongold, Bodenkreditinstitut, Covered Bonds, Developer, Gewerbeimmobilien, Immobilienfonds, Kosten,…

A bank can only obtain imperfect information on the quality (creditworthiness) and behavior (payment behavior) of its borrower. Therefore, from their point of view, it is crucial whether a borrower has sufficient collateral to…

Generally, the transfer of real estate as collateral for a loan. – A pledge demanded by a bondholder if the issuer of a bond is not sufficiently trusted. In connection with the Dawes bond…

Special fund of a capital management company that is invested in at least fifteen properties. Certificates are issued for these. The aim is to make real estate available to small investors on a daily…

A company that invests capital in land and buildings, manages them and seeks to generate a return through rental income and appreciation. – See real estate fund, open-end, real estate investment trust. Attention: The…

real estate stock corporation with listed shares): A – stock corporation listed on the stock exchange (as a rule; other legal forms are possible), – which invests capital in buildings and land as well…

The central banks are particularly interested in real estate prices because higher prices, especially for developed land (residential buildings), translate into higher rents and restrict household consumption. If prices fall, homeowners lose out. This…

Banks are permitted by regulatory authorities to recognize investment property at fair value when calculating capital resources. – See real estate bubble. – Cf. BaFin Annual Report 2005, p. 108, BaFin Annual Report 2010,…

Income adjusted for inflation (deflating any income flow by a price index in order to measure the purchasing power of the item in question). – See wage-price spiral, redistribution, central bank-induced. Attention: The financial…

A nominal interest rate adjusted by the – actually measured, realized inflation rate or the expected inflation rate (the inflation-adjusted return on invested funds). In the calculation basis of long-term Investment and consumption decisions…

The assertion that in the euro area, given the same nominal interest rate and a below-average inflation rate in one member country – such as Germany – the real interest rate for that member…

In older documents, it means coins made of silver or gold; as distinct from – bank bills (currency made of metal, as opposed to paper currency) or – certificates such as a check or…

A special type of index-linked issue in which the creditor lends money to the debtor in return for an obligation to return tangible assets of a fixed quantity and quality at maturity. The interest…

Unless otherwise statistically delineated, means only loans made to households for the purpose of purchasing a home. – See land credit institution, loan liability, limited, Home Mortgage Disclosure Act, real-estate loan limitation, real-estate additional…

Loans secured by mortgages on real estate. Depending on the creditworthiness of the borrower, a rough distinction is made between prime mortgage loans, which are usually secured by real estate owned by companies, and…

Assets of a capital management company invested predominantly in houses and real estate, which issues share certificates (entity which is formed to pool funds from a large number of investors in order to acquire…

Approximately 230 key figures on the euro area economy made available by the ECB since January 19, 2010, which are also offered as time series and can be downloaded from the central bank’s website…

more rarely exchange rate realignment): Change in the central parity of a currency participating in an exchange rate system with fixed but adjustable exchange rate ratios. – In ERM II, realignment means a change…

Commonly said in older literature as a plural-only term (PLURALE TANTUM; plural-only noun) for land, for real property, especially with respect to purchase, sale, mortgaging, and taxation (any ground, soil, or earth whatsoever regarded…

Particularly in older financial terminology, for money received in return for an open claim – or for claims in general. – See agreement, settlement, liquidation, close-out, payment. Attention: The financial encyclopedia is protected by…

The right to demand recurring payments from a plot of land, § 1105 BGB. – In older documents also said for land tax: the charge on the ownership of a plot of land (property).…

In the older financial language often used expression in the meaning – by favorable, but nevertheless legally permissible opportunity (legal opportunity) – to conclude a fast, profitable business (lucrative fast deal), – to accumulate…

In the context of business cycle diagnosis, the empirically proven fact that, in principle (as a rule, i.e.: there are exceptions), the weaker the GDP growth in the preceding periods, the stronger the economic…

A change in a company’s capital structure, such as an exchange of bonds for stock, usually with the aim of making the company’s capital structure more stable, or to boost the company’s stock price.…

In older financial language, also meaning – to arrange accounts (according to due date; after the due date); – to show the balances of general ledger accounts, usually grouped according to assets, liabilities, expenses…

According to Section 386 of the German Civil Code (BGB), a general acknowledgement of receipt of a service rendered, in the narrower sense in the financial sector of a payment made (a written acknowledgment…

Amount due for payment but unpaid on the contractual due date (which remains unpaid after the contractual due date). – See accounts receivable, receivable, due. Attention: The financial encyclopedia is protected by copyright and…

In older literature, often used for claims – of a company against customers for deliveries or a bank for loans granted, as well as – for prepayments to suppliers. – It is wrong to…

In the definition used by official statistics and central banks, a decline in the gross domestic product over a period of two quarters. In the parlance of financial journalists and also the general public,…

The characteristic of an asset, company, industry or occupational group which is not significantly or not at all affected by a recession. Recession-resistant industries include the food industry, while recession-resistant occupations include civil servants.…

In the case of foreign exchange management, an import that is offset by an export of equal value, so that no foreign exchange needs to be provided to either party to the contract. Attention:…

Unless otherwise defined, the precise determination and system-compatible recording – according to the rules of descriptive statistics or accounting – of all monetary transactions in an economic area. It is usually reflected in –…

An earlier payment that was payable when documents were notarized. – A charge imposed on ships when navigating certain rivers. – See ford fee, octroi, rheinoctroi, lock fee. Attention: The financial encyclopedia is protected…

Reunification of a bond separated by stripping. In the case of federal bonds in Germany, reconstruction is permitted to banks only for their own holdings. – The effort to restore the essential features of…

In Germany, banks are required to prepare minutes of securities transactions with their customers and make them available to the supervisory authority at any time. – See Dossier obligation, False advice. – Cf. 2001…

In the jargon of institutions, a colleague who handwrites important documents with remarks that no one – and often enough not even he/she – can decipher later. – See airbag, all-rounder, autonomously acting unit,…

In financial jargon, this refers to an upward movement after a period of contraction; in terms of – the economy, which is now emerging from a recession, or – an asset, which is now…

A temporary rise in prices in a market that tends to be characterized by falling turnover (small upmove in a bear market). – See abbassamento, bear, bubble, speculative, crash, financial crisis, graveyard market, spring…

Rückfluss): Unless otherwise defined, in the context of financial flows, the expenditures of oil-exporting countries to purchase goods in those (industrial) countries that purchase the oil. – See oil price, oil price shocks, petrodollar.…

In older documents also financial-technical – the payment of debts by a third party; – the release from obligation (generic term: Fron; soccage, sometimes distinguished from other forms of tenure including serjeanty [the bondsman…

The (premature) recall of securities by the issuer; a corresponding clause of callback is contractually stipulated in most bonds. – The appropriation of private property by the state by way of unilateral disposition; in…

Generally, the removal of a legal obligation by law (such as: peasant relief; abolition of serfdom) or by payment in money, as in easements. – The replacement of an existing loan with a new…

Deduction charged by the management of some funds when an investor returns his or her shares to the fund company (a sales commission charged to investors for the sale of shares in a mutual…

Formerly a payment for the redemption of a marriage. The fine was to be paid – as a payment in kind with a fixed number of cattle (= heifer: a mature female bovine younger…

The contractual possibility of paying off investors in securities before the end of the originally defined term if an agreed triggering circumstance (contingency) occurs. – The repayment of a loan with an institution prior…

Rate at which special institutions (rediscount banks) or a central bank advance discounted bills from banks. – The ECB does not engage in rediscounting. Attention: The financial encyclopedia is protected by copyright and may…

The purchase of bills discounted by banks by special institutions, as in England, but usually by the central bank. – The ECB does not engage in rediscounting. – See discount policy, discount rate. Attention:…

In connection with the purchase of government bonds of highly indebted members of the EMU by the ECB. – This is because the taxpayers of the efficient member states have to pay for the…

In connection with the purchase of government bonds of highly indebted members of the EMU by the ECB. – This is because the taxpayers of the efficient member states have to pay for the…