English

In the psychology of money, a private household that immediately spends the money it has earned (a consumer wanting to spend the money earned at once). – See Wealth effect. Attention: The financial encyclopedia…

In the psychology of money, a private household that immediately spends the money it has earned (a consumer wanting to spend the money earned at once). – See Wealth effect. Attention: The financial encyclopedia…

In older documents, an expression for the confirmation of payment. – See receipt. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor…

A concerted action (“communicative coordination contract”), but without necessarily being based on a legally binding agreement – and certainly not in written form for reasons of antitrust law. The German Federal Financial Supervisory Authority…

Any type of transaction in the financial market, including buy and sell recommendations in electronic platforms, in which two or more related entities act as if they were different entities (transactions where two or…

Market participants willing to buy submit a price proposal for an offer. The bids received are examined at the end of the auction period and the highest bidder wins the item (auction at which…

In relation to the financial market, any action executed in fulfillment of whichever financial market purposes, including the operations of the central bank and supervisory authorities. – To transact on the financial market for…

At an institution, a business unit that is the focus of management in terms of its contribution to profit (section of service process for which management wants to distinctly report the costs of the…

At an institution, a business unit that is the focus of management in terms of its contribution to profit (section of service process for which management wants to distinctly report the costs of the…

Unless otherwise defined, at an institution, the retrospective imputed assessment of all operations in terms of the extent to which they have contributed to success; usually combined with suggestions as to how costs incurred…

In relation to the financial market, anyone who conducts business there (a person or entity who acts in the financial market). – In a broader sense, in addition to the professional financial market players,…

The value of a receivable due in the future discounted to the present. – See discounting, discounted cash flow, capitalized earnings value, expected profit, selling price. Attention: The financial encyclopedia is protected by copyright…

In the case of loans, the nominal interest rate taking into account – discounts, – processing fees, – repayment terms, such as repayment amounts, grace periods, repayment dates, repayment settlement dates, – interest payment…

Unless explicitly stated otherwise, the yield of a security based on its market value. – See coupon rate, interest rate. Attention: The financial encyclopedia is protected by copyright and may only be used for…

Securities that are delivered to the customer in the context of a table-top transaction, i.e., not stored in a safekeeping account at the bank. Private safekeeping saves fees and shields the holder from investigations…

Securities that are delivered to the customer in the context of a table-top transaction, i.e. not stored in a safekeeping account at the bank. Private safekeeping saves fees and shields the holder from investigations…

) Interest day count in which the actual number of calendar days and the year is calculated as 365 days. – Actual/360 is based on the year with 360 days. – See Accrual principle,…

The physical commodity underlying a futures contract. – On the commodity exchange also said with regard to transactions settled step by step on the cash market; in contrast to the turnover on the futures…

In older literature and still currently in Swiss German, a – court clerk (law-clerk), – minute taker (minute taker), and also – registrar and caretaker of the archive (der Repositur; archive) in a company…

In the philosophy of money, this term, borrowed from Aristotelian philosophy, refers to the fact that money consists in itself: it does not itself have any compelling force to do anything. Money is neither…

In Germany, stock corporations listed on the official market and regulated market – but not yet on the over-the-counter market – are required to inform the public about important changes in the financial or…

A separate estate established under the Kyoto Protocol, an agreement on climate protection signed by 167 signatory states on December 11, 1997, to raise capital to compensate for environmental damage. The fund is financed…

In older financial language meaning to turn an object into money, to silver something (to convert into cash a thing). The word derives from the Latin word AES, AERIS = metal, and here in…

In annual reports, including those of banks, since around 2000, there has been a sharp increase in the number of long-winded statements on the general business environment, economic developments in the world today and…

A contractual stipulation that a counterparty must deliver collateral to its counterparty if a claim of the latter against the former exceeds a certain amount. – See Margin call, Margin cover, Additional cover, Additional…

The maximum amount that an outstanding receivable may reach before the counterparty has the right to request the agreed additional collateral. – See close-and-reprice, margin call, margin cover, margin call, margin agreement, margin obligation.…

In the broadest sense, anyone who acts as a supplier or buyer on the financial market, whether a natural person or a legal entity. – Customer who takes out a loan from a bank:…

In a credit relation in general, the risk that a debtor may no longer be able to meet its obligations to the creditor – for example, due to insolvency. – From a bank’s point…

The naming of false information – usually not limited to the address in the narrower sense, but also with regard to other facts – in business transactions and also vis-à-vis a bank. – Opening…

Pursuant to § 3 of the Remuneration Ordinance for Institutions, a compensation scheme is adequate if – incentives for management and employees to take disproportionately high risks are avoided and – the compensation scheme…

Pursuant to § 3 of the Remuneration Ordinance for Institutions, a compensation scheme is adequate if – incentives for management and employees to take disproportionately high risks are avoided and – the compensation scheme…

In older documents, the addition to an amount of money (money added to an amount), usually in connection with contract negotiations and auctions. – See action. Attention: The financial encyclopedia is protected by copyright…

Term used in connection with a bank’s risk cover funds. In detail, it comprises equity as shown in the balance sheet, less unrealized gains on securities. – See Capital requirements, economic. – Cf. Deutsche…

Newer term for the following chain of effects: – the active part of a country’s population in the labor force declines sharply relative to the non-active part (declining birth rate, “burden caused by the…

Mainly referred to in older textbooks as a monetary policy of matching wage and price rises with money supply increases, so that the real money supply does not fall and drive the economy into…

In older documents, the provisional remuneration of a civil servant during the probationary period or of a trainee with a public authority. – A usually one-time monetary aid (one-off grant), a subsidy. Attention: The…

A bank licensed to operate in an EU member state by the competent supervisory authority must also have its head office at the specified registered office. The legal source is Article 11, paragraph 2…

In connection with an order issued by the supervisory authorities or the central bank, this means that the administrative act becomes legally valid – i.e., the finality of the regulatory action – if it…

A charge levied in earlier times on persons who wished to settle permanently within a (city) municipality or territory. – Fee for the admission of a new journeyman to a guild, also called Brudergeld,…

Generally, a fee charged for entering certain rooms – such as a museum (museum: a place where works of art, scientific samples, or other objects of permanent value are kept and exposed) – or…

For securities exchanges in the euro area, recorded by the ECB with regard to – the number of IPOs as well as – the volume of turnover and analyzed for various influencing variables and…

The legal act (registration settlement) by which an asset is admitted to trading on the stock exchange (admission of an asset by a recognized stock exchange to its quotation list). – See negotiability. Attention:…

A common provision built into savings-plan contracts in particular, according to which a good portion of the first monthly savings installments (promotion rates) – up to ninety percent – is used to cover the…

In finance, an advertising letter (ad mail) with the purpose of attracting attention to an institution’s services; usually used as a lead-up to a subsequent call or visit and often accompanied by a lure…

The foreign exchange authority provides an importer with foreign currency to import a good – such as: Gold – on the condition that the importer transfers the processed goods – e.g. gold jewelry, gold…

The seller’s bank provides an (abstract) promise of payment in favor of the buyer for the refund of a down payment (advance payment) made in the event of a breach of contract. The amount…

In older documents, a payment to yarn collectors who, on behalf of merchants in the cities, purchased woven fabrics from village producers of yarn made from fibers such as animal wool, hair, nettle, flax,…

The difference between the number of advancing and declining security prices during a period of time. This ratio is used in technical share analysis as a measure of the condition or psychology of the…

A specially designed (simulation) system of calculations in the course of algorithm trading to simplify global securities trading, established by the Swiss bank Credit Suisse. It is designed to think and behave like –…

fortgeschrittener Messansatz): A tool used by institutions to measure operational risk. This is ultimately based on the bank’s own estimates of capital backing and must be approved by the supervisory authority. – See counterparty…

In the financial market, participants with good creditworthiness withdraw and thus leave the field to less trustworthy partners (a situation in which financial market participation denotes a negative signal). – A situation in which…

Unless otherwise defined, an expert who provides expert advice on a fee basis to the decision-makers of a capital management company, i.e. the fund management, – on investments in specific markets, regions or financial…

Special tax introduced in Germany after the Thirty Years’ War (1618-1648) to replenish the manorial coffers and payable in cash, which persisted in some territorial states until the 19th century. The tax was levied…

In older financial language, a person – who appraises the value of assets, an appraiser, or – an expert who calculates the cost of a project (one who is competent of predicting the probable…

In the financial market, the willingness of an investor to pay more than the market price for an asset because he has a strong personal and emotional attachment to that asset; for example, a…

Nachbesprechung): Unless otherwise defined, an internal bank meeting at which the results of transactions are discussed critically. The term seems to have entered the financial language from the military vocabulary. – See audit, super…

Transactions concluded after the close of an exchange session, usually between banks (trading by telephone or by other means that takes place after the official market has closed). – See Late trading. Attention: The…

In the case of banks, especially supplementary services after the sale of financial products, such as ongoing communication on the price development of an asset. – See Advance Letter. Attention: The financial encyclopedia is…

Formerly said of – bad money (bad money), coins in circulation but without purchasing power (coins without purchasing power) or – unknown and therefore not usable in business transactions (unusable) coins or also bills.…

The ratio of citizens aged 65 and older to people of working age (15 to 64). – In Euroland, the ratio will change from around 25 percent at present (year 2010) to over 50…

The increase in the number of residents over the age of 65 in an area. This has a variety of implications for investment, government spending, and also for the stability of the currency. –…

The increase in the number of residents over the age of 65 in an area. This has a variety of implications for investment, government spending, and also for the stability of the currency. –…

Term that entered the German language after 2000 and is also used by the ECB in its German-language publications – in linguistic terms, a “displacing Anglicism” (replaced Anglicism) – for – an authority, an…

In the financial market, the representation of an institution abroad (a form of organization frequently used by foreign banks to enter a foreign market, especially in the USA. An agency bank generally may not…

In the U.S.A., securities issued by federal agencies or private entities that are also known as government-sponsored enterprises. Their prices are often used as a benchmark for comparing similar securities that do not carry…

The management of a company does not act primarily, and in extreme cases not at all, – in the interest of the owners, i.e. the shareholders or partners, or – with consideration for the…

Thought-out proposals aimed at coordinating the intentions of the executives – the management, the agency – of a bank or, more generally, of a company – with regard to financing (narrower concept) – with…

The accusation that, from around 1970 onward, central banks around the world, in addition to their task of maintaining price stability, have also taken on more and more economic policy decision-making power. This reproach…

Term valid until 2007 for a tied agent. – Cf. 2007 BaFin Annual Report, p. 208 (new legal situation). Attention: The financial encyclopedia is protected by copyright and may only be used for private…

With regard to the foreign branches of domestic banks, the fact that smaller institutions prefer to establish themselves where a larger domestic bank already has a foothold. This is explained by the fact that…

As defined by the ECB, the monetary liabilities of monetary financial institutions (MFIs) and central governments vis-à-vis non-MFIs resident in the euro area. – For details on the variables, see the annex “Euro area…

A monetary aggregate is defined by the ECB as the sum of currency in circulation plus those outstanding liabilities of monetary financial institutions that have a high degree of money or liquidity in the…

In the futures market, the bundling of contracts by one trader or several traders with the aim of – reducing the number of reportable positions (subject to disclosure requirements) and/or – limiting the risk…

Countries with aging populations (such as China and most members of the EU: their populations will decline by 0.75 percent per year until 2050!) usually have relatively high savings rates. Savings preferentially flow to…

The fact that in China and Europe, the gross return on investments will decline in the long term. This is because the shrinking workforce means that more capital is used, and the return on…

In older literature, the account of profit and loss from transactions with bills of exchange and with foreign coins. Attention: The financial encyclopedia is protected by copyright and may only be used for private…

Bonds that are redeemable at a premium on draw or call. Certain corporate bonds in particular are redeemable at such a premium. Attention: The financial encyclopedia is protected by copyright and may only be…

Founders of a stock corporation issue shares and promise brilliant business deals. The shares are then subscribed for at a high premium. Now the founders sell the shares again and pocket the profit. It…

In older documents also meaning: settlement of a liability in general and of an invoice in particular. – See settlement, payment, equalization, compensation, liberation, pagament, postage day, realization, payment. Attention: The financial encyclopedia is…

An issuing house promises the issuer an investment recommendation of the security by the analysts of the house. Such agreements are prohibited by the supervisory authorities. – Cf. Annual Report 2007 of BaFin, p.…

In exchange parlance, agricultural products that are loaded and transported unpackaged, such as cereals, corn, or oilseeds (a collective expression for all the agricultural bulk goods like cereals, oil-containing seeds, or raw material for…

In the language of finance, (listed; market-listed, exchange-traded) key agricultural products, such as primarily grains, soybeans, and meat, which form the preferred underlying of corresponding derivative financial products. – See agricultural product, agribulk, basket…

In relation to trading on commodity exchanges, this includes – commodities such as grain, cotton, soybeans and livestock (things as wheat, cotton, corn, soybean, livestock, etc.).), – all commodities derived from living organisms, including…

All measures to influence the primary production sector of an economy (agriculture, forestry and fisheries), often subdivided into – market and price policy, – agricultural social policies and – agricultural framework policy. – Because…

In the course of the subprime crisis, which turned into a financial crisis, American International Group (AIG), formerly the world’s largest insurance company, came to the brink of bankruptcy. The Federal Reserve Bank of…

hole): On the commodity exchange, said of a particular market situation in which there is a temporary lack of buy orders, but demand is expected to pick up soon. More closely, limit orders (orders…

Certificate in which the investor participates in the price increase of an underlying asset depending on the participation factor. – Losses of the underlying asset are cushioned up to an agreed threshold. If the…

At an institution, a colleague against whom every criticism and every recommendation made in bank staff training bounces off without any success. – See Aktenschänder, Alleskönner, Autonom agierende Einheit, Behavioural Branding, Chief Copying Officer,…

A debt security backed by mortgages on aircraft. Similar to ships (ship mortgage bond), aircraft are durable goods with low default rates. There is also a well-functioning international secondary market for aircraft. – See…

The inability of a person to form coherent sentences. Critics – mostly from the arrogant literary elite – have repeatedly attributed such an affliction to the players on the financial market. This is justified…

In older documents, a citizen liable to pay the excise. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk,…

Program trading on the stock exchange, whereby – computers controlled according to financial mathematical models – continuously monitor prices automatically, – if necessary, automatically initiate buy or sell orders and – forward the orders…

A special cash payment formerly payable in Germany by pupils from outside a community which set up a school. They were charged more because their parents were not covered by municipal taxes, as were…

Banks have often aligned their terms and conditions (and, in particular, their credit policies) with those of their competitors without any formal agreements between the institutions. – See alliances, cross-border, correspondent banking relationship. Attention:…

Statistical measurement term covering all domestic banks including their branches abroad. – Cf. the Deutsche Bundesbank’s booklet “Banking Statistics,” appendix “Explanatory Notes. Attention: The financial encyclopedia is protected by copyright and may only be…

In a bank, the services for all age groups, for the wide range of customers, such as account management. – See Dinks business, Denture investment, Oldie business, Power-age financial market, Private banking, Silver economy,…

a committee set up at the beginning of 2013 by the German Federal Financial Supervisory Authority with the purpose of identifying and assessing risks affecting the financial sector as a whole. – See Risk…

Instruction to the broker to execute a buy or sell order on the exchange only if he can buy or sell the specified number of units in their entirety at a specific price (requirement…

An employee who can be deployed in very many, in extreme cases in all, departments of a financial services provider and in each case also copes well with the field of activity (line of…

In the jargon of institutes, a freshman from university who knows little, does not overlook the course of business, does not perform at all but believes he/she is far superior to all employees and…