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Since the beginning of 2012, all securities services companies have been required to record sales employees in a database to be forwarded to BaFin on the basis of the provisions that came into force…

A program that enables employees to purchase shares of the firm’s common stock on a preferential basis. Because in any case a transfer of assets from the stock corporation to company employees takes place…

Employee turnover refers to the number or percentage of workers who leave an organization and are replaced by new employees during a certain period. It’s an important metric for HR managers and leaders to…

Employees of a bank are required by Section 44, Paragraph 1 of the German Banking Act (KWG) to provide information to the Federal Financial Supervisory Authority (BaFin) upon request. – See misstatement, whistleblower. Attention:…

This term is used by regulators to refer to employees who, in the course of their duties, regularly receive information that is capable of strongly influencing market conditions in securities trading and derivatives trading.…

A loan granted to an employee by the employer for a specific purpose. In most cases, this is aid related to the creation of housing for the employee. In order to rule out a…

All measures to ensure a high level of occupational activity within the working-age population. Contrary to numerous statements to the contrary, this is fundamentally not a matter for the central bank. Rather, it is…

In relation to banks, the shifting of decision-making authority to the lowest levels of the hierarchy, i.e., to employees on site, and if possible even in the front office. This strengthens both employee motivation…

If not otherwise defined, the fact that within the European Monetary Union the competitiveness of the individual member states – already at the time of entry into EMU was very different and – these…

For cards, uniform features for tamper-proof use, primarily by including a chip. At the same time, the card should guarantee worldwide interoptability. The corresponding design was developed by Europay (now Master Card Europe), MasterCard…

Generally, a person or entity that helps someone else to achieve a goal (a person who through his or her actions allows someone else to achieve something). – In the financial sector, especially said…

a chest for storing money and valuables) or in a vault (a room or section for safekeeping of valuables). – See collection, collection period, cash collection, cash safe, collection business, collection strategy, safe boom.…

At the ECB, the point in time at the end of the business day – after the TARGET system has closed – at which the work relating to the payments processed in the TARGET…

At the ECB, the point in time at the end of the business day – after the TARGET system has closed – at which the work relating to the payments processed in the TARGET…

The new creditor (transferee) to whom the rights in an order paper are transferred by the holder of the paper (the endorser or girant; indorser). – See allonge, giro, bearer bond, endorsement, registered paper,…

Services provided by a bank that relate to the professional management of a charitable foundation and usually include expert asset management, project controlling (all activities necessary to manage a project over its entire life)…

Services provided by a bank that relate to the professional management of a charitable foundation and usually include expert asset management, project controlling (all activities necessary to manage a project over its entire life)…

Capital or assets accumulated in older documents for the purpose of financing the expenses of a church, monastery or charitable foundation, especially in the care of the elderly and sick. – Capital management company…

Capital or assets accumulated in older documents for the purpose of financing the expenses of a church, monastery or charitable foundation, especially in the care of the elderly and sick. – Capital management company…

The ratio of the energy consumption of an economy or economic area to its gross domestic product. Because energy prices play an important role in monetary stability, especially in industrialized countries, changes in energy…

Unless otherwise defined, in ECB statistics, final consumer prices for gas, electricity, solid fuels and thermal energy. The price of crude oil is not included. – Energy prices account for about ten percent of…

Shares of companies engaged in the production and distribution of coal, oil, gas and electricity, including wind power plants. There are considerable differences within the individual sectors, which is why the stock prices of…

According to various calculations, a ten percent increase in energy prices in Germany in 2007 caused prices to rise by approximately one percent in about eight months. – See oil inflation, oil price, inflation,…

Regulatory term used to describe the EU-wide and also international enforcement of certain accounting and auditing regulations. – In a two-stage process, the German Financial Reporting Enforcement Panel (FREP) and the German Federal Financial…

Unless otherwise defined, this refers to the adoption of International Financial Reporting Standards in Germany or in the EU as a whole. – See IFRS dialects. Attention: The financial encyclopedia is protected by copyright…

Bilanz-Kontrolleur): As of the reporting date ultimo December 2004, the financial statements of listed companies must be subjected to an audit by an external auditor in addition to the audit by a certified public…

In a very broad sense, any sharing in the activities of the financial markets. – Any kind of use of one’s own or borrowed money with the aim of making a profit. – In…

A term often used in the financial crisis that followed the subprime crisis to describe a central bank’s policy of injecting as much liquidity as possible into the markets through various channels in order…

Working group founded in 1970 with the aim of exchanging supervisory experience with regard to capital management companies at the international level. – See Committee Madness. Attention: The financial encyclopedia is protected by copyright…

Often said by financial journalists in reference to a very large amount (an exceedingly large quantity of money: scads); the prefix “un-” is used here not for negation but for intensification-as in unthunderstorm, unquantity,…

Often said by financial journalists in reference to a very large amount (an exceedingly large quantity of money: scads); the prefix “un-” is used here not for negation but for intensification-as in unthunderstorm, unquantity,…

Unless otherwise defined, the sum of market capitalization and interest-bearing debt less cash and cash equivalents (the market value of the shareholders’ equity). [share market capitalization if a company is quoted] plus the market…

Unless otherwise defined, the sum of market capitalization and interest-bearing debt less cash and cash equivalents (the market value of the shareholders’ equity). [share market capitalization if a company is quoted] plus the market…

In older documents, a fee for the supervision of amusements by the order and fire police. These included all events, performances and presentations that were intended by the organizer to provide amusement and entertainment.…

Defined prudentially in Directive 2006/48/EC of the European Parliament and of the Council of June 14, 2006, relating to the taking up and pursuit of the business of credit institutions as “noncommercial administrative bodies…

Defined prudentially in Directive 2006/48/EC of the European Parliament and of the Council of June 14, 2006, relating to the taking up and pursuit of the business of credit institutions as “noncommercial administrative bodies…

From about 2000 onwards, the word “entity” has been widely used in the German language in various meanings, namely – in general for a single piece (element) out of a multitude of possible pieces…

Euro Over Night Indexed Average. Overnight rate for the EUR in interbank money market transactions, calculated as an average on the basis of data provided by a representative panel of contributing banks in the…

Swaps in this context refer to exchange transactions between institutional market participants. The EONIA swap in particular is an interest rate swap based on overnight money, in which fixed interest rates are exchanged for…

Coins struck in ancient documents by bishops in France. By royal privilege, the bishops and abbots (abbots: the rulers of a monastery with the rank of abbey; abbey = a canonically erected independent, self-governing…

In older literature, in the calculation of interest in current accounts, the time from the initial date to the closing date of the current account. – See interest fixing day. Attention: The financial encyclopedia…

In older documents, in relation to a portfolio, the elimination of assets that – over an extended period of time – did not provide a sufficient return to the investor. – See financial portfolio…

The requirement that the same accounting rules must be applied to the same circumstances, irrespective of whether they occur on or off the balance sheet, such as in special purpose entities, regardless of whether…

A balance sheet liability set up by banks to offset the ups and downs in the volume of loan losses in future years. For insurance companies, this is prescribed in detail in relation to…

A balance sheet liability set up by banks to offset the ups and downs in the volume of loan losses in future years. For insurance companies, this is prescribed in detail in relation to…

Linguistically unattractive term for – assumptions about the interrelationships of economic variables, in the course of which – in particular the expectations of market participants are taken into account. – Thus, one moves here…

In a forced exchange economy, the obligation of the foreign exchange authority to deliver to importers only as much foreign exchange as exporters have earned in the foreign currency area in question. – See…

The ratio of fixed assets to the total assets of an industry or company. If this ratio is higher than the average for the economy as a whole, the industry is said to be…

Companies in the leasing business bundle the collateral provided to them by lessees – usually with a bank acting as intermediary – and transfer it to a special purpose entity. The special-purpose entity converts…

Capital generally held by an enterprise and meeting the criteria of – permanence, – loss absorbency, and – freedom to make distributions. – According to IAS (RK 49 c), the amount of a company’s…

An institution that arranges, arranges, and manages all of a client’s financial arrangements, including arranging all outgoing and incoming payments and any necessary capital raising. – See Arranger, Fiscal Agent, Investment Banking. Attention: The…

A bank provides equity capital as an intermediary or as an investor to companies that do not have access to the stock exchange. Mainly the companies are start-ups, and the funds provided count as…

Loan from a bank – to an investor – mainly to a capital management company – that is used to bridge the time gap between the acquisition of an asset – such as: Purchase…

In the case of a bank, basically the sum of – core capital (= paid-in capital, open reserves including the liability reserve, fund for general banking risks) and – supplementary capital (= hidden reserves,…

According to IAS (32 and 39), a contractual arrangement that gives rise to a residual claim to assets of an entity after deducting all related obligations. – See financial instrument. Attention: The financial encyclopedia…

The – contractually defined – entitlement of the holder of a mezzanine tranche to acquire shares in the company being financed as compensation for its capital at an option price. – See equity certificate,…

In general, the risk of loss due to fluctuations (oscillations: movements above and below a mean value) in share prices. – Insurance companies are particularly affected. In 2002, insurance companies in Europe had invested…

In simplified form, the difference between the expected share price and the risk-free interest rate, in effect the interest rate on first-class government bonds, i.e. securities issued by countries that are able and willing…

In the ECB’s statistics, all ownership rights in corporations. They include both listed and unlisted shares as well as other equity securities. As a rule, they generate income in the form of dividends. –…

The issuer of such a security reserves the right to redeem the issue by delivering shares under precisely defined conditions. – In contrast to the usual fixed-interest bearing securities, reverse convertible bonds have a…

Unless otherwise defined, in the case of a bank this is the sum of common stock and retained earnings. Hard equity does not include securities whose holders are liable for losses only in the…

In principle, public levies are to be distributed among the payers in such a way that they correspond to the benefits that the individual payer (citizen, company) receives from the state. – In reality,…

Said in older documents for a removal, usually fraudulent, of text and/or figures in a document generally and on commercial documents such as checks and drafts in particular. – See wire fraud, digit fraud.…

Improperly produced coins, mainly – due to double strikes during the coining process and – due to strikes that deviate from the center of the coin blank (planchet). – Because such coins are usually…

In the case of sales prospectuses for non-securities investment prospectuses, the supervisory authority has recently criticized not only – the inadequate presentation of risk, but in particular – the incomplete disclosure of the costs…

Generally, a rider built into a contract (rider: an addition or amandment to a document) that allows the contracting parties to deviate from the basic contract in the event of any rigidities that are…

Sometimes used German term for the Banking Supervision Committee, BSC. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk,…

Any day on which the ECB and at least one national central bank are open for the purpose of conducting ECB monetary policy operations. Attention: The financial encyclopedia is protected by copyright and may…

A body of experts meeting for the first time in October 2011 with the aim of – exploring the links between financial stability and economic performance in detail, – methodologically improving systemic risk indicators…

In the financial market, a document concerning an agreement between two parties. This document remains with a third, independent party (escrow provider; trusted third party) until both contracting parties have fulfilled their obligations. –…

In old documents, a duty fixed in the relevant tariff on the export of dutiable (dutiable: subject to customs duty according to tariff which must be paid when imported or [as in the case…

Generally, a discount for cash payment; a rebate. – The pricing in of future events into the price of securities. – In older documents, other term for discount. Attention: The financial encyclopedia is protected…

Article 32, paragraph 9, of the Treaty on the European Stabilization Mechanism states that “the ESM shall be exempt from any authorization or licensing requirement … for credit institutions.” Thus, the ESM may act…

In the language of German supervisory law, the country in which an institution maintains a branch outside its home country or operates by way of cross-border services¸ see Section 1, Paragraph 5, KWG. –…

In older commercial documents, a business, a factory, a (trading) establishment, but less also said of a bank. The present meaning (place of amusement, house of pleasure) was attached to the term much later.…

In the financial market, the approximate assessment of a market price, usually – by inspection (especially in the case of tangible assets), – survey (as in a roadshow), – comparison with similar prices of…

At the beginning of 2011, Estonia became the seventeenth member of the European Monetary Union. This was preceded by a violent debate. The ECB opposed Estonia’s early accession. The country had fallen into recession…

In older documents, the year embossed on the reverse of a coin. – Obverse, legend, millesime. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express…

EU Commission directive aimed at standardizing the licensing and business activities of banks in the EU, which has been implemented in Germany by amending the German Banking Act (KWG). – See Banking License, Capital…

A Brussels-based lobby group founded in 1960 to represent the interests of the banking industry. Upcoming decisions of the European institutions are discussed here in advance at the association level in order to then…

The budget and financial plan of the EU in Brussels have an impact on the ECB’s monetary policy insofar as any deficits (EU spending in excess of the member countries’ own resources transfers) entail…

Loans granted by the European Union to countries in urgent need. For example, the EU granted loans to Hungary and Latvia in 2008; the EU Commission refinances itself by issuing corresponding securities on the…

EU-wide harmonized provisions regarding the operation of a pension fund, the obligations to provide information to persons entitled to a pension and benefit recipients, the measurement and coverage of provisions, the principles of investment…

Directive that came into force in December 2003 with the aim of allowing securities to be offered to the public throughout the EU or to apply for admission to trading on a stock exchange…

Sequence of individual steps set up by the Commission with the aim of coordinating the economic policies of the individual member states. – Cf. Deutsche Bundesbank Monthly Report of October 2011, pp. 44 ff.…

Sequence of individual steps set up by the Commission with the aim of coordinating the economic policies of the individual member states. – Cf. Deutsche Bundesbank Monthly Report of October 2011, pp. 44 ff.…

In the stock market, a rapid, accelerating rise in price followed by a steep and hasty increase in price followed by an abrupt and rapid drop. – See selling panic, downturn, bear market, crash,…

Market interest rate at which – a first-class bank – offers liquidity in EUR to another first-class institution, and – receives from the debtor as collateral the full amount of first-class government bonds or…

Pure computer exchange founded in 1998; it was created by merging the Deutsche Terminbörse (DTB, founded in 1990) with the Swiss Soffex (Swiss Options and Financial Futures Exchange). The transactions concluded here are future…

European central counterparty for trading in credit default swaps opened in Frankfurt am Main at the end of July 2009 at the insistence of the EU Commission. The company is a subsidiary of Deutsche…

Euro Interbank Offered Rate: The interest rate on the European interbank money market, more precisely: the average interest rate at which a prime bank is willing to lend funds in EUR to another prime…

EUR): Name of the common European currency. It entered into force on January 1, 1999, in the form of giro money. After a three-year transitional period, the euro was also introduced in the form…

those European countries which have publicly adopted the EUR in coordination with the ECB (the area encompassing those member states in which the EUR has been legally adopted, and in which a single monetary…

territory of those EU Member States that have adopted the EUR as their single currency. – See euro area, euro group, euro area, euro area countries, Eurosystem, euro area, economic policy, European. – Cf.…

body composed of the representatives of various European banks, dedicated to the discussion of related technical issues, and in particular researching problems related to the use of the EUR and the settlement of euro…

Generally, an issue denominated in EUR. – Specifically, the proposed issuance of government bonds by a European Debt Agency for which all members of the European Monetary Union are jointly and serverally liable. –…

Bonds traded on the international euro capital market, primarily issued by governments, companies and banks. A distinction is made between – bonds with fixed interest rates (straight bonds), which predominate on the euro financial…

Based on ongoing Internet surveys conducted by the investment company Sentix in Frankfurt/Main, it explores the extent to which respondents expect the EMU to break up as a result of the departure of a…

The official exchange rate of the currencies participating in ERM II against the EUR. The fluctuation bands of ERM II are set on either side of the central rate. – See Exchange Rate, Exchange…

Commercial paper issued as discounted or interest-bearing paper and traded on the market, primarily in Europe. The maturity is usually between two and 360 days. – See discount paper, bank bond, certificates of deposit,…