English

In older financial language, often said for a bank account (account with a financial institution, recording the transactions between the customer and the institution). – See overnight deposit account. Attention: The financial encyclopedia is…

Founded in 1930 as a joint-stock company in Basel, the Bank of Central Banks is responsible for consolidating intergovernmental monetary relations in almost all areas, especially in the area of prudential supervision. The Bank…

Proposal published in 2010 by the Financial Stability Board in response to the financial crisis in the wake of the subprime crisis, which led to the collapse of major global institutions. – If a…

Internationally standardized bank code that allows a credit institution to be uniquely identified worldwide, formerly also known as the SWIFT address. In addition to the IBAN, the BIC is also usually required for the…

Any – enterprise, even in the guise of a one-person company, which – on financial markets – offers any services and – through whatever distribution channel: very broad colloquial term. Because of the legal…

The mandatory disclosure of customer data by an institution to third parties. Legal provisions force banks to disclose information to authorities such as the public prosecutor’s office, the revenue office and the insolvency court…

A company that both conducts money business and is commercially active in insurance. – See financial conglomerate. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without…

Unless otherwise defined, the interest rates charged by institutions to borrowers. – Cf. ECB Monthly Bulletin of July 2009, pp. 37 ff. (developments in bank interest rates in the euro area and the U.S.A.…

Interconnection between legally independent banks in a country, irrespective of whether they are grouped together under a holding company (group) or not. – Cross-border integration in the banking sector, as is particularly prevalent in…

Self-service unit of a bank inside or outside the banking hall. – See container banking, branch, fully automated, queue. Attention: The financial encyclopedia is protected by copyright and may only be used for private…

In 2010, wages and salaries accounted for an average of forty-eight percent of total bank costs in Europe; in Japan, close to fifty percent; and in the United States, around forty-two percent. – See…

A loan may only be granted to those who – subjectively are willing and – objectively are able to repay the loan. – Financial history clearly shows that as soon as these two circumstances…

German term for the Bank Lending Survey, which has been conducted in the euro area since 2003, usually in January, and the results of which are then published in the ECB’s February Monthly Bulletin…

German term for the Bank Lending Survey, which has been conducted in the euro area since 2003, usually in January, and the results of which are then published in the ECB’s February Monthly Bulletin…

Quarterly survey on lending business in the euro area organized by the ECB since the beginning of 2003 with the aim of gaining the most accurate possible insight into the lending behavior of banks…

Special tax for institutions advocated in Germany after the financial crisis following the subprime crisis. The tax was to amount to fifteen percent of an institution’s annual profit. The funds raised in this way…

Permission, issued by the competent authority for this purpose, to offer banking services on the market. – See bank, bank license, operator license, business, prohibited. Attention: The financial encyclopedia is protected by copyright and…

Liquid assets that banks need to maintain their ability to pay. – From the perspective of the individual bank, this basically includes all assets that can be converted into cash at any time (liquidated:…

Any loan made by an institution to a customer. – See Darlehn, Subordinated loan, Term loan. – Cf. Deutsche Bundesbank Monthly Report of November 2014, pp. 44 f. (differences in the importance of bank…

A term widely used in the financial world for the license required under Sections 32 and 33 of the German Banking Act (KWG) to act as a bank manager. Sufficient individual reliability is required;…

Unless otherwise defined in financial terminology, both the spot and forward markets for currencies where known counterparties conduct transactions. Attention: The financial encyclopedia is protected by copyright and may only be used for private…

Bank mergers always require the approval of the supervisory authorities. In particular, they check the compatibility of organizational structures and IT system landscapes in order to limit any potential accumulation of risk as a…

Demand deposits held at banks and other account offices for the purpose of payment transactions, also known as scriptural money and book money. – Earlier term for a court fee; bank = here: Bench…

Trading in central bank money within commercial banks. In Germany, around one-third of banks’ lending consists of loans to other institutions. – Credit risks from interbank relationships are a channel that can very quickly…

Until about 1950, a common term in the German language for an employee in contact with customers, especially those working at bank counters. Today, the term is widely frowned upon in the financial industry.…

In older documents, a bill of exchange accepted by a bank at a discount. – The share of a bank operating as a limited company. Attention: The financial encyclopedia is protected by copyright and…

A bank’s homepage on the Internet that leads the user to the bank’s services (especially online banking and financial information). – See Giropay, Online banking. Attention: The financial encyclopedia is protected by copyright and…

The entire area of a bank, including the building, parking spaces for employees and customers, fire lane and emergency access. Attention: The financial encyclopedia is protected by copyright and may only be used for…

Older term for the rediscount rate of a central bank, which was often also introduced by law as the key interest rate; in Germany, this was the case under Section 247 of the German…

A widespread term used in connection with the financial crisis that followed the subprime crisis, meaning that the central bank or the state provides assistance to failing banks in order to save them from…

Finanzmarktstabilisierungsergänzungsgesetz, FMStErgG (German bank rescue law): Federal law enacted in Germany in the spring of 2009 in the wake of the financial crisis that followed the 2007 subprime crisis, containing a series of far-reaching…

Unless otherwise defined, deposits held by banks with the central bank. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard…

A technical term for the decision taken in England in 1797 by Parliament to exempt the Bank of England from the obligation to redeem its bills at any time for coins made of precious…

The loans granted by a bank should correspond – in terms of volume, – in terms of maturity and also – which is very often still criminally disregarded today! – should correspond to their…

The view that banks are solely to blame for all the troubles that followed the subprime crisis. Exaggerated reports played up by the mass media, such promising high ratings figures, about individual misconduct created…

Security evidencing the share in an institution managed in the legal form of a stock corporation (AG) or partnership limited by shares (KGaA). – Cf. BaFin Annual Report 2010, p. 28 (comparison of bank…

When the value of a bank share is low, shareholders – and with them the supervisory board as their representative – have an interest in the bank increasing the risk of its operations rather…

In the language of the stock exchange, this refers to shares in banks, i.e. not assets owned by banks. Attention: The financial encyclopedia is protected by copyright and may only be used for private…

Term that emerged with the subprime crisis and expresses the classification (triage from the French verb “trier” = to sort, to arrange) of institutions into – A banks: these are healthy and do not…

Popular term for the obligation introduced in the UK in the fall of 2009 for large banks to make arrangements in advance for emergencies. In particular, an institution must show – which units it…

In financial terminology, the term used to describe the fact that company financing is mainly provided by bank loans, i.e. not primarily by issuing debt instruments. – In contrast to the U.S.A., a large…

Studies in the U.S. and Germany have revealed that institutions – and companies in general – with their own fleet of aircraft CETERIS PARIBUS generate less profit than comparable companies without company-owned air service.…

An institution owned by a church and usually limited in its business orientation to the faithful of the church. – In Germany, the Catholic Pax-Bank, founded in Cologne in 1917, has achieved supraregional importance.…

An institution that does business in more than one state or currency area. – In the U.S.A. – a domestic bank that can also operate worldwide, regardless of federal requirements, or – a foreign…

Bank that offers its services both – in walk-in premises (brick [= brick] and mortar [= mortar] bank) – and with basically the same range of services on the Internet (transactional website). – See…

An institution that, in relation to a sovereign, must be considered of critical importance to the national economy because of its size and interconnectedness. In October 2012, the Basel Committee on Banking Supervision published…

In the course of the subprime crisis, this term became generally known for an institution that – is of a certain size, – is interwoven into the financial markets worldwide, and – can hardly…

The offering of usually closely interlinked banking and insurance services by a single company. In most cases, the corresponding financial products are distributed by a bank that is linked to an insurance company through…

In Switzerland, independent supervisory authority over banks and investment funds. – Cf. on cooperation with the German BaFin, BaFin Annual Report 2004, pp. 115 f. (Swiss banks were exempted from supervision in Germany). Attention:…

Unless expressly defined otherwise, especially in older publications, a firm that conducts banking business; defined in detail in Art. 54 SchG. – See bank, banker, commitment, sole proprietorship, banking, financial services institution, financial institution,…

Someone who works in the financial industry – that is, not necessarily only in the narrow sense at a bank. The job title in this sense became firmly established in the German language from…

A bill of exchange issued by a company and accepted by a bank, containing the promise of payment of a specified sum at a specified time. The customer thus receives a loan from the…

The number eleven. – The expression derives from the fact that a bank deducts handling fees and interest in advance on a loan of twelve GE, and then pays out only eleven GE to…

Casual, regular meetings of bankers from different institutions at one place in their free time, set up usually privately, sometimes also unionized (by labor unions). The purpose of the meetings is to exchange experience…

In the jargon of financial journalists, designation for Frankfurt am Main. – In 2013, Frankfurt ranked ninth among the world’s ten most important financial centers, ahead of Seoul in tenth place and behind Geneva,…

Older expression meaning “to conduct banking business”. Where the word has entered the language in more recent times, it is generally associated with a derogatory meaning. – See banker, banking, financial sodomite. Attention: The…

Unless otherwise defined, in financial terminology it means – to be active in the financial market and – in a narrow sense, to conduct banking business, and in other meanings also – the entire…

Body set up in 1977 consisting of high-level representatives of finance ministries, supervisory authorities and central banks of the EU and some other countries. The committee’s objective is to prepare EU supervisory measures. –…

Generic term for the totality of all companies operating in the financial sector. However, an individual institution is not classified as part of the banking industry. – See bank, banker, money temple, practice. Attention:…

Term frequently used in financial journalism, and then regularly used to refer to the set of ideas, views, opinions, attitudes, and expectations prevalent among those working in the banking industry. – See banking power,…

The insolvency of a single bank. – Severe disruption, up to and including complete collapse, of the financial system in a currency area, a financial crisis. Affected by this – as can be empirically…

Common terms for the totality of all institutions, but avoided by the Deutsche Bundesbank and the ECB, which prefer the term banking sector. – Banking industry refers more to the organizational structure of the…

The number of institutions accepting deposits from customers within a given geographic area. – See banking density, financial center. Attention: The financial encyclopedia is protected by copyright and may only be used for private…

In Germany, the term used to refer to a town or city in which the Landeszentralbank maintained a branch. In such places, it was easier to obtain cash immediately; the stock of cash could…

In general, all government measures to influence the activities of institutions with the aim of – protecting creditors and, in particular, depositors, – ensuring that banks operate in a secure manner that inspires confidence,…

The protection of bank customers from information provided by the bank to third parties, including the (tax) authorities. This is ensured to varying degrees in the individual countries. – In Switzerland, banking secrecy has…

In national accounts, the contribution of banks to value added, calculated since 2005 according to a new method introduced for all EU countries. – See Banking services, imputed. – Cf. ECB Monthly Bulletin of…

Working group of representatives of the EU central banks and staff of the national supervisory authorities established in 1998 and based at the ECB with the aim of exchanging information on fundamental and current…

Supervisory authority established after years of tug-of-war in the aftermath of the subprime crisis for the euro area as a whole as well as for EU members wishing to participate. – From mid-2014, the…

A supervisory fee is charged to the supervised institutions for expenses related to European banking supervision, mainly personnel and material costs (personnel costs are calculated with 60 percent of the total amount; costs for…

All banks in clearing – in a currency area or – globally. – The commercial banks and the central bank in a currency area. – See specialized banking system, financial system, regulatory arbitrage. Attention:…

Even beyond the central bank’s existing stock of precious metals (gold, silver), banknotes can be issued without risk, as long as the principles of sound banking (good banking) are observed. This view – now…

The operation of lending business or deposit business, – if it remains excluded or is considerably impeded by agreement or business practice, – to dispose of the loan amount or the deposits by cash…

A term that arose in 2012 in relation to EMU and is misleading without explanation. It is not to be understood as banks joining together within the euro area. Rather, it means three things,…

A prerequisite for the success of the banking union is that sound, economically reasonable conditions are created for all participants. After all, the banking union is a form of insurance. As with any insurance…

The requirement that a bank should not be allowed to conduct all business. Experience during the Great Depression from 1929 and the global financial crisis that followed the subprime crisis in 2007 showed that…

A word with a very derogatory meaning that entered the German language in the wake of the subprime crisis. Basically, it is implied that a banker is only out to overreach and fleece the…

Body of the ECB with the aim of coordinating all technical issues related to the circulation of banknotes and coins. This includes a dedicated counterfeit monitoring system (CMS). – See Banknote Circulation, Banknote Value…

The effort by a central bank to provide forgery-proof banknotes in sufficient quantities within a currency area and possibly beyond for global payments for all the needs of the public. – See Banknote Committee,…

The acceptance, processing (handling), and recirculation of banknotes. This term does not include retail change disbursements. – See banknote management, preclusive term, Payment Services Supervision Act. – Cf. Deutsche Bundesbank Monthly Report, January 2011,…

In the case of banknotes, the number of banknotes issued by the central bank, divided by the average number of banknotes in circulation and based on one year. – See Outsourcing, Cash cycle, Cash…

Originally, the debt promise of the issuing bank to redeem the banknote at par in precious metal at any time. Today, a paper that performs the function of legal tender: Paper money. – See…

It is practically impossible to determine exactly the quantity of euro banknotes circulating in an individual euro area member country. Therefore, a presumptive allocation is made. According to this, 8 percent of the total…

The opinion that – besides governments, – above them or – behind them the – mainly internationally active – banks determine world events. Asserted and allegedly proven in many forums on the Internet by…

A bank takes over and settles a supplier’s invoice to its customer, especially in the foreign merchandise business. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes…

Term for insolvency, financial ruin, bankruptcy, which entered the German language from Yiddish in the 19th century. Originally referring only to merchants and companies, the word is now also used in connection with states,…

In older documents, someone who stops making payments; usually with the connotation that this is done fraudulently (a person who is insolvent, especially who has done acts such as a transfer of his property…

Colloquial name for a bankrupt: a person or also a company that can no longer meet its payment obligations. – Common name for the bailiff’s seal (Pfandsiegel; die Pfändungsmarke), which is affixed by the…

Former German legal term for insolvency (inability to discharge debts as they come due). – Still used colloquially today to refer to the complete demise of a company or a state in the sense…

In colloquial language and in Section 283 of the Criminal Code, the state of insolvency of a business entity: insolvency has occurred. Other terms are crash, bankruptcy, ruin, financial collapse and bust. – In…

In older documents, the assets remaining in bankruptcy and available to satisfy creditors; the bankruptcy estate. – See Extensum, insolvency, Krida, locution judgment, parity reservation, priority rule, unconditional. Attention: The financial encyclopedia is protected…

The proposition – even put forward in many respected textbooks – that small firms are more likely to be sensitive to bankruptcy than larger firms. – Broad-based empirical studies have clearly shown that it…

Former name for transitional payment to employees whose employer became insolvent. – See salary stop, insolvency loss money. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes…

In the event of the insolvency of an institution within the territory of the European Union, an EU directive relating to this must be observed. – See resolution mechanism, unified, bad bank, bailout, bank,…

In the stock exchange language of the USA, one million USD. – In England, colloquially one GBP (one bar = one pound). Attention: The financial encyclopedia is protected by copyright and may only be…

Graphical representation of daily price movements on the stock exchange. – As a rule, a vertical bar is drawn in the chart at the corresponding price level for each trading day; the length of…

Graphical representation of daily price movements on the stock exchange. – As a rule, a vertical bar is drawn in the chart at the corresponding price level for each trading day; the length of…

An investor includes short-term securities in his portfolio and long-term securities up to thirty years (investment strategy that concentrates holdings in the portfolio in both very short-term and extremely long-term maturities; this is also…

So far, a loose form of cooperation between the ECB and twelve central banks of the Mediterranean countries. – Cf. ECB Monthly Bulletin, April 2004, pp. 73 et seq. Attention: The financial encyclopedia is…

In stock market jargon, an investor who has lost his entire fortune speculating on the securities market (an inexperienced investor who has lost everything on the equities market). – See investment courage, stock market…