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In order to shape the economic process in such a way that – money gets into the hands of even the best manager and – prosperity increases as a result, performance targets should be…

A temporary reduction in the income tax rate. This measure was proposed primarily to deal with the financial crisis that arose in the wake of the subprime crisis in 2007 and to create more…

A rebate in freight charges agreed upon voluntarily or under special conditions by contract. – Price deduction according to § 380 HGB for defective or damaged goods. – See bonification, deduction, decort, impact. Attention:…

Generally, an interest rate to which a large number of transactions refer, such as LIBOR. Such a benchmark must fulfill various conditions, such as above all: – Transparency: the procedure for determining the interest…

In the case of credit derivatives, the content of the generally similar credit relationships between a bank and debtors that are combined in a pool (portfolio, special asset, pool). These may be corporate loans,…

The underlying asset of a forward transaction: another name for the underlying asset. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor…

Currency to which an (option) contract refers. – Money in which an economic entity pays for certain decisions, especially in a border area where trade and service providers from two different currency areas are…

A basic price at which, depending on the market situation or fiscal burdens – such as the The price corridors are calculated on the basis of the price of milk, bread rolls or gasoline.…

Generally, the procurement of liquidity to make up for a cash outflow now or later. – The repayment of a loan by taking out a new loan, usually of the same size and using…

Temporary and collateralized supply of money by the central bank to ensure institutions’ short-term liquidity. – A loan granted by a state development bank to a bank so that the institution can in turn…

Regular open market operations conducted by the ECB in the form of reverse transactions. – Longer-term refinancing operations are executed through standard monthly tenders, usually with a maturity of three months, in the form…

A list prescribed in Germany by the German Banking Act (sections 22a et seq.) with the aim of ensuring insolvency-proof claims by the issuer, e.g. a special purpose vehicle, to the transfer of the…

The – risk of a bank or company – not being able to meet financial obligations in the event of exceptional conditions on the financial market, such as insufficient market liquidity, – because the…

Unless otherwise defined, in older financial parlance this refers to those mortgage bonds that are repurchased by mortgage lenders to prevent them from depressing the market. – See price maintenance, market maintenance. Attention: The…

A term frequently used in relation to the financial market, both in state laws and regulations, in the instructions and orders of supervisory authorities, and in related textbooks and practice. – In its original…

Capital that investors deposit in certain countries – such as Switzerland – in whose political stability and legal system they have confidence, and in which, above all, banking secrecy is firmly anchored. – However,…

In West Germany after 1948, state-subsidized and partially publicly guaranteed loans to cooperative building promoters that provided housing for refugees and expellees. – See repayment assistance, settlement loan. Attention: The financial encyclopedia is protected…

The (partial) repayment of the purchase price of a good for reasons such as faults in manufacturing or dissatisfaction with the service provided. – The payment of expenses incurred in advance, such as traveling…

Any crediting of a part of the contractually paid amount of money in favor of the depositor. – Payment of a premium or granting of special benefits for bringing in a new customer (payment…

Unless otherwise defined, the remittance of overpaid taxes by the tax office (money owed to taxpayers when their whole tax payments are greater than the total tax). – See refund. Attention: The financial encyclopedia…

In the USA, said for the acceptance of an application to study at a university with very high tuition fees. However, matriculation (the act of being enrolled in the register of students) is not…

The refusal to accept money given by the legal system on the basis of a validation with compulsory acceptance. – See compulsory acceptance, cryptocurrency, money trust, capital flight, secondary currency, means of payment, central…

In the course of merging the original 26 (hence the naming twenty-six) and now 28 national legal regimes on the financial market in the EU, a new, pan-European legal regime was proposed. It is…

A geographic area outside the U.S. in which the U.S. dollar – is officially adopted as the unit of currency, as was the case in Argentina and Ecuador in 2001, or – plays an…

A geographical area outside Euroland in which the EUR plays a role as a secondary currency, as is currently the case in Turkey and North Africa. In this case, one also speaks of de…

A public corporation whose jurisdiction is defined by a spatially delimited part of the national territory. Membership follows from residence in a given territory. Territorial authorities such as municipalities, counties, departments, cantons or states…

In the narrower sense, an institution that is confined to a geographical region in its business activities. – In the broader sense, and thus also in the Deutsche Bundesbank’s banking statistics, an institution that…

Money surrogate issued by private initiative in certain districts, especially in Germany after the introduction of the euro. Its circulation is restricted to a geographically defined area and to the group of people who…

A list of issuers offered to the public by the German Federal Financial Supervisory Authority (BaFin) that are exempt from the obligation to publish a prospectus because they address only private buyers who –…

Security issued in – the name of a specific person, – non-transferable – a registered security (registered security): from the Latin word recta via = by a straight path, namely the obligor must pay…

In the past, a form of money payment regularly used by the postal service, for example for payments by insurance companies and social security agencies to private households without a bank account. Money letter…

A document that is indispensable for the transfer of the documented right. These include – the recta papers (instruments not to order: registered securities (in the narrower sense); these are generally made out to…

No unit certificates are issued (standard case) for the assets set up and managed by a capital management company. Rather, the fund keeps a register of investors (a certificate whose owner is listed with…

A charge in cash, especially in meaning, to obtain – in earlier times, as part of the taxe, a seat in a stagecoach, – to be accepted (matriculated; matriculated) at an institution of higher…

In relation to the financial market, all measures determined by legal regulations and monitored by supervisory authorities with the primary aim of preventing market failure and strengthening competition. – In detail, a distinction is…

A frequently voiced reproach with regard to the density of regulation in German and U.S. financial markets. From a factual point of view, the close-knit net of rules basically benefits both financial services institutions…

A frequently voiced reproach with regard to the density of regulation in German and U.S. financial markets. From a factual point of view, the close-knit net of rules basically benefits both financial services institutions…

Because no supervisory authority has an overview of which risks have been outsourced to the shadow banking sector, the ECB proposed at the beginning of 2012 to introduce indirect regulation here. For the time…

In connection with the directive on shareholdings, the binding regulation of – prior notification requirements and — the supervisory review process of exposures to insurance companies and banks. – Cf. BaFin Annual Report 2008,…

Regulations issued by the EU at the beginning of 2007 regarding the disclosure obligations imposed on all parties involved in payment transactions. The purpose of the regulation is to prevent money laundering and terrorist…

The complaint, in relation to financial markets, that legislators are eager to keep creating new regulations, also called bureaucratic overkill. As a result, regulators are given more and more power. A regulatory break is…

Generally, the outsourcing of business activities from areas subject to regulatory oversight to agents not subject to regulatory oversight (financial engineering designed to evade regulation). – The transfer of prudentially supervised transactions – from…

Additional prudential regulations for banks, especially with regard to capital requirements, – burden banks with higher costs, – reduce their profits, – diminish their ability to lend and – can, in the worst case,…

Unless otherwise defined, this refers to on-site inspections by the supervisory authority, either – on the initiative of the institution: the institution requests an inspection from the supervisory authority because circumstances within the institution…

In older documents, a monetary benefit under a contract, such as the delivery of grain, wine or wood to employees. Today, the term is used almost exclusively in connection with brewery leases. – See…

From 1875 to 1945, the central bank for Germany, headquartered in Berlin. Management was in the hands of the Reichsbank Directorate, headed by the Reichsbank President. The Reichsbank Board of Trustees exercised overall supervision.…

In Germany, starting in 1874, treasury notes were issued by the National Debt Office in Berlin within a legally defined framework. They were put into circulation in denominations of 5, 10, 20 and 50…

Between 1924 and 1948, the legal monetary unit in Germany; ISO code XXR. – See gold mark, livre, mark, place, Rentenmark, thaler, currency reform. Attention: The financial encyclopedia is protected by copyright and may…

Securities issued until the demise of the German Reich in 1945. – See Dawes bond, Chamber of Securities Settlement, London Debt Conference, sovereign debt, denied, Young bond. Attention: The financial encyclopedia is protected by…

A loan by the bank on goods – usually from overseas – against delivery of the bill of lading, also called bill of lading (not loading!) (a document issued by a transporter and confirming…

The insurance of a risk assumed by a primary insurer. – The insurer ceding the risk is called the cedant. Because of the principle of risk sharing and the limitation to large risks, reinsurance…

Banks take over non-performing securities issued by themselves or by related special purpose entities. Often, this is not done out of contractual obligation in the course of a re-transfer clause, but – as often…

Unless otherwise defined, this refers to savings banks and cooperative institutes (Volksbanken, Raiffeisenbanken). – See local bank, credit cooperatives. Attention: The financial encyclopedia is protected by copyright and may only be used for private…

Unless otherwise defined, this refers to savings banks and cooperative institutes (Volksbanken, Raiffeisenbanken). – See local bank, credit cooperatives. Attention: The financial encyclopedia is protected by copyright and may only be used for private…

A credit institution that enters into a long-lasting business relationship with a company, which – is based on an in-depth, comprehensive exchange of information and – protects the company against liquidity shortages and strong…

There is personal contact between the bank employee and the customer; both know each other from their social environment. The term is used primarily to refer to the business activities of local banks. –…

Maintaining contacts on the part of the bank with (major) customers, whereby not only personal visits and telephone calls play a role, but also social events (social events such as birthday parties, carnival sessions,…

Often used in older documents for the recovery of pledged commodities or securities by payment of the debt on them. Attention: The financial encyclopedia is protected by copyright and may only be used for…

Earlier payment to the bursar’s office of the university for reimbursement of the administrative costs associated with relegation – namely, expulsion from the university. The relegate was required to make this payment because otherwise…

A loan extended by a company to a newly hired employee who is moving to the place of employment; often with the purpose of enabling the employee to purchase residential property on the spot…

A loan extended by a company to a newly hired employee who is moving to the place of employment; often with the purpose of enabling the employee to purchase residential property on the spot…

Old term for the remaining amount to be refunded to the contractual partner after settlement; today: debit balance. – In the past, change that was returned in surplus in the form of small coins…

In the case of Kurant coins, the legally permitted minting error. According to the German Coinage Law of December 7, 1871, for example, this variation was limited to two and a half thousandths of…

Payment to be made by a debtor in default for expenses incurred in connection with the reminder (dunning). Case law has specified in detail which costs incurred by the creditor may be included in…

According to IAS (20.3), a loan granted by a lender with the promise to waive repayment under certain contractually defined conditions. Attention: The financial encyclopedia is protected by copyright and may only be used…

In older documents, the deferment or abatement of levies when payment would hardly be possible for the liable party due to exceptional circumstances, especially bad harvests and epizootic diseases. Old sovereign remission ordinances usually…

The procurement of the delivery of cash, giro money or electronic means of payment from a principal to its customer. Since October 2009, the professional operation of such businesses has been subject to the…

In general, any cash payment to a recipient. – Form-related (form; input mask in Internet banking) payment order by a customer to his bank to transfer a certain sum to another account at the…

In general, any cash payment to a recipient. – Form-related (form; input mask in Internet banking) payment order by a customer to his bank to transfer a certain sum to another account at the…

The ability of a customer to access certain bank services via electronic devices around the clock by a bank customer, regardless of location and business hours (the option of direct access to particular bank…

Automated access to financial services institutions (the use of programmable machines to carry out banking transactions). – See banking portal, ease of use, direct brokerage, internet banking, Metcalfe rule, moonlight banking, multi-channel bankingMobile banking,…

The settlement of a debt where the payer and payee are in different locations. – See payment, personal. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes…

Unless otherwise defined, expenses incurred in installing/dismantling and transporting an item. – In banking, such expenses are incurred primarily when bank containers are set up at major events such as festivals, church conventions, sporting…

Unless otherwise defined, expenses incurred in installing/dismantling and transporting an item. – In banking, such expenses are incurred primarily when bank containers are set up at major events such as festivals, church conventions, sporting…

Generally, the payment of a sum of money under a contractual agreement, especially said of employment contracts: salary, earnings, salary, pay. – The remuneration for services rendered by certain professions, such as lawyers (attorneys’…

Generally, the payment of a sum of money under a contractual agreement, especially said of employment contracts: salary, earnings, salary, pay. – The remuneration for services rendered by certain professions, such as lawyers (attorneys’…

Generally, the agreed payment in money for services rendered by the contracting party, such as the labor input of employees: Remuneration = salary, salary, remuneration. – In relation to the financial market, generally said…

A term that emerged in connection with EMU around 2012 to describe the business policy of European banks to lend only to domestic companies. This counteracts European financial market integration. The reason for this…

According to the ECB’s original intention, it sets the rules, binding on all, according to which the national central banks of the member states grant loans. After the financial crisis that followed the subprime…

Unless otherwise defined, in the transition from national currencies to the EUR, the change in the nominal amount of securities with the aim of achieving “round” units – such as EUR 100 – and…

The payment for the transfer of use of a thing; see § 353 BGB. – Expenditure by private households on residential rent has a high weighting in the Harmonized Index of Consumer Prices. Their…

The annual rent per square meter divided by the price of the rental property per square meter and adjusted by a regular ten percent markup for acquisition costs. The rental yield is an important…

Bank that facilitates the redemption of current annuities by advancing corresponding sums to the annuity debtor for immediate payment of the capitalized annuities, and then having the debtor pay them off as redemption amounts.…

Currency designation of an intermediate German currency introduced in October 1923 to overcome inflation; it was 1 RM = 100 Rentenpfennig. The Rentenmark replaced the completely devalued paper mark at a ratio of 1:1…

In older financial terminology, someone who lives off the income from his or her property and especially from an interest-bearing portfolio (someone whose income is from property rents or bond interest and other investments),…

As a special form of credit insurance, rental claims against commercial tenants can be insured up to a maximum period of usually six months. If the insurance period is longer, the landlord has no…

In older financial terminology, often used to mean – in general, any kind of compensation for services rendered and – in particular, wages and other benefits received as compensation for employment. Attention: The financial…

In financial parlance, the passing on of risks to third parties on the part of a bank, essentially through the means of securitization. – See originate-to-distribute strategy, packaging art, securitization structure, special purpose vehicle.…

If foreign investors lose confidence in the reliability of economic policy in the investor country, the sums invested there are withdrawn. As a rule, this aggravates the difficulties in the country concerned and can…

The return of assets invested in foreign currency areas to the (currency) home country (the return of capital from a foreign currency area to the investor’s home currency zone). – The act of remitting…

Loans – especially mortgages of private borrowers – are not paid off in the usual way by a regular repayment installment. Instead, (share) fund units are purchased month by month. The loan is then…

Generally, the contractual repayment (amortization; payoff) of a debt expressed in monetary terms (the complete repayment of loan principal, interest and any other sums due; payoff occurs either over the scheduled full term of…

Generally, the contractual repayment (amortization; payoff) of a debt expressed in monetary terms (the complete repayment of loan principal, interest and any other sums due; payoff occurs either over the scheduled full term of…

The money that an over-indebted state lacks can only come from four sources, namely – the taxpayers of the country in question raise it themselves, – the creditors waive it, – the taxpayers of…

The money that an over-indebted state lacks can only come from four sources, namely – the taxpayers of the country in question raise it themselves, – the creditors waive it, – the taxpayers of…

Holders of electronic money may demand its redemption at par value in cash or by bank transfer if the redemption amount exceeds EUR 10; see Section 22a KWG. – Cf. Deutsche Bundesbank Monthly Report,…

A financial instrument in which money is saved to pay a bullet loan (an investment which is used to repay a loan at the end of the term). – See balloon loan, balloon, bullet…

A financial instrument in which money is saved to pay a bullet loan (an investment which is used to repay a loan at the end of the term). – See balloon loan, balloon, bullet…

If not defined otherwise, this term refers to securities which an insolvent debtor in general and a government in particular hand over to the creditor in cash instead of due repayment. Such securities have…

Funds set aside to acquire capital shares from investors who wish to sell. Often, the details of a possible takeover by co-owners are contractually agreed in advance – funds set aside for replacement investments,…