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The doctrine, still held today in blogs and a number of Internet forums, that money as an object made of metal or paper can never be productive (money in the form of paper or…

The doctrine, still held today in blogs and a number of Internet forums, that money as an object made of metal or paper can never be productive (money in the form of paper or…

The sum paid in advance to secure contract loyalty (observance). – A deposit required when taking up a public office and usually invested at interest to prevent possible embezzlement, often also called malversation in…

Fee for the use of a prahm (barge: a roomy boat, usually flat-bottomed, used chiefly on rivers and canals). – See Bordinggeld. Attention: The financial encyclopedia is protected by copyright and may only be…

From the city point of view of statistical methodology, more or less accurate surveys of people about – their assessments of certain objects, events and occurrences or – regarding their expectations. – As for…

From the city point of view of statistical methodology, more or less accurate surveys of people about – their assessments of certain objects, events and occurrences or – regarding their expectations. – As for…

An individual share or shares of an industry (such as the motor vehicle industry) listed on the stock exchange whose price movements – in the past have demonstrably indicated an imminent economic upswing or…

A tax that – in the past, municipalities collected from the operators of barrel organs and hurdy-gurdy boxes played in public, or – today, generally from buskers as a musician’s fee. – As a…

Special form of exotic option, each of which is equipped with a barrier. The option right is automatically triggered (knock-in option) or terminated (knock-out option) as soon as the barrier is reached (contracts with…

A barter transaction in which goods are exchanged for goods or securities are exchanged for securities (system of exchange in which one good is traded directly for another without the use of money). –…

Unless otherwise defined, the priority distribution of profits to investors before other beneficiaries are served. – See Carried interest, Hurdle rate. Attention: The financial encyclopedia is protected by copyright and may only be used…

The influence of unusual monthly changes in the cost-of-living index as a whole or in individual subindices on the inflation rate measured annually. – The level of the inflation rate for a given period…

Defined in Germany in the “Gesetz zur Änderung von Vorschriften über die Bewertung von Kapitalanlagen von Versicherungsunternehmen und zur Aufhebung des Diskontsatz-Überleitungs-Gesetzes (Versicherungskapitalanlagen-Bewertungsgesetz, VersKapAG)” (Act Amending Provisions on the Valuation of Investments of Insurance…

Roughly speaking, the sum of currency and deposits at the central bank. – See cash, monetary base. – Cf. ECB Monthly Bulletin, May 2012, pp. 21 ff. (relationship between base money and price stability;…

In the case of services provided by a bank, the amount due from the customer for ordinary activities specified in the General Business Conditions. Any orders placed by the customer with the institution in…

the pronunciation in English is often the same as in French, i.e. Bâle!): Sometimes used short form for Basel-I, Basel-II or Basel-III. Attention: The financial encyclopedia is protected by copyright and may only be…

A body of banking supervisory authorities established in 1974 to coordinate banking supervision in the individual member countries. In particular, the aim is to improve supervisory techniques and to ensure the introduction of minimum…

short form for the Basel Accord. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr.…

Generally the term for very specific rules on the Reserves that banks must build up when granting loans. The better the prospect of punctual servicing of the loan or the more solvent the debtor,…

Body established in the course of the implementation of Basel-II comprising representatives of the supervisory authority, the Deutsche Bundesbank and the banking industry. The working group also comprised several expert panels (workshops). – Cf.…

New banking supervisory rules adopted by the Basel Committee in September 2010 relating to higher minimum capital requirements for banks. The new rules will be phased in gradually from 2012 onwards on a precisely…

See Basler. – In Switzerland (where this city is located) one only says “Basler”; so also at the ECB. At the German Bundesbank, in reference to arrogant Prussian government offices looking down with disdain…

The ECB’s two-pillar approach to forecasting economic variables. Particularly in the case of the projection of national product, deviations from a probable expected basic direction (uncertainty bands) are taken into account, which increase in…

Every human being is subject to the rhythm of nature: he has to sleep, drink and eat repetitively. In the human existence lies an attachment, a compulsive bondage (existential dependence) to the goods. To…

The demand that every member of society, regardless of his or her contribution to the creation of the social product, be granted an income – to be provided by whom? – income to be…

Method for determining the capital adequacy requirements for operational risk at institutions. In principle, an institution is required to hold capital in the amount of fifteen percent of the three-year average of the risk…

On the stock exchange, the difference between the cash price and the futures price of a financial product or commodity. Spot minus futures = basis (the difference between the cash price and the futures…

More cash in the hands of private households can have the effect that they feel wealthier and therefore demand more. – As a result of global competition, companies can hardly pass on higher prices…

Unless otherwise defined, in financial language, one hundredth of one percent, i.e., one basis point = 0.01 percent (one hundredth of 1 percent = 0.01 percent). – When “points” are used in connection with…

In forward transactions, the typical risk that the spread between the actual price of an underlying asset at the settlement date and the strike price has changed to the investor’s disadvantage. – See basis,…

If a company needs to buy a commodity in the future – for example, a mill needs to buy certain quantities of wheat – it can protect itself on the exchange against an unexpected…

On the stock exchange, a comparatively large difference between the spot price and the forward price of a commodity. A weak basis is often also called a “broad basis” or “more negative basis”. –…

Selection of securities of a certain type, for example shares of an industry. – The underlying of a derivative. – A portfolio, a holding of securities of a private household or a company. –…

Unless otherwise defined, a participation certificate whose underlying consists of a basket of different securities compiled by the respective issuer. Baskets with various weighted stock market indices are also used. – See guarantee certificate,…

In ancient documents, the money that domestic servants (domestics) put into their own pockets when purchasing goods to the detriment of the ruler, especially when purchased cheaply (inferior goods; low grade products) under the…

Guidelines set by the Basel Committee on Banking Supervision in 1988 for the capital adequacy (net equity base) and risk management of banks. These guidelines have been adopted into national supervisory law by the…

A parameter that requires institutions to calculate the cash effects of two interest rate developments specified by the supervisory authorities. The loss from the most unfavorable interest rate development for the bank is then…

Coin initially made only of silver, later of a mixture of copper and silver, with the copper portion exceeding the silver portion in terms of quantity. The coin was produced in Bern from the…

This bank, headquartered in Munich, was acquired in June 2005 by UniCredit Banca S.p.A. of Italy, headquartered in Milan, by way of a share swap. The transaction triggered a great deal of attention and…

A term that emerged in 1990 in connection with criticism of global economic interdependence. According to this, German goods would largely be manufactured in cheap foreign countries, and they would then only be given…

Term introduced by financial journalists at the end of 2011 with the broad meaning that it would take a one-off, concentrated action with extraordinary penetrating power – like a bazooka – on the part…

In reference to the financial market, an investor who expects prices to fall (an investor who believes a stock or the overall market will decline). – See Bull Attention: The financial encyclopedia is protected…

Term for the market participant expecting a bear market; bearish. As a rule, the bear sells today for a later date. – See asset emergency, bear market, graveyard market. Attention: The financial encyclopedia is…

On commodity exchanges – the purchase of a put option with a high strike price and – simultaneous sale of a put option with a lower strike price. Here, the market participant expects falling…

One or usually several owners of securities suddenly throw them onto the market with the intention of driving prices down (large traders sell positions with the intention of driving prices down). – The price…

The internationally active U.S. investment bank Bear Stearns, headquartered in Neuyork, faced a run in connection with the subprime crisis. The U.S. central bank propped up the floundering institution, which was then taken over…

Especially in the case of listed financial products, a situation in which investors expect prices to fall and therefore hold back, but meanwhile prices are already rising again. – The opposite is known as…

A bond for which physical possession of the certificate is proof of ownership; the issuer does not know the identity of the bondholder. – This contrasts with the registered bond (registered bond: a bond…

The fact that the member of a (international; international) body set up to solve certain tasks basically acts in the interest of the common goal and hardly according to his (national; national) self-interest. –…

A levy imposed on lodging establishments depending on the number of occupied beds. – In the summer of 2013, the Administrative Court prohibited the City of Cologne from imposing a bed charge. – See…

Gift given by the invitees to the woman who has recently given birth (puerpera: a woman who has recently given birth) in the form of a coin after the baptismal feast in many places.…

In old documents, the very high fee in the port of Constantinople and some other Turkish ports; from there sometimes said of a port fee at all. – See Auseisunggeld, Bordinggeld, Kaigeld, Kapgeld, Kapplaken,…

In Germany, this was initially a tax levied by the emperor on the towns and cities of the empire. In many regions, it developed into a general tax based on various assessment bases. The…

After World War II, jokingly said for perlon stockings (perlon = a thermoplastic polyamide, belonging to a family of strong resilient synthetic fibers, found 1936 by the German chemist Paul Schlack), which were extremely…

Formerly a fee for permission to keep honeybees (honeybees). – A former fee that non-resident beekeepers (apiarists) had to pay into the municipal treasury if they – let their bee colony swarm out in…

In the past, a common tax imposed on brewers, also called beer excise. The income from beer money was not very high. However, they were received on a regular basis and could therefore be…

Means of payment collected by a professional beggar (beggar, lazar) from gifts of charity from others. – In Europe, monks from a mendicant order used to collect money from the faithful to cover their…

According to the identification of older documents, widespread bad habit of beggars to pretend to be mutes. They approached their victims by shaking them with a small bell (a resonating metallic device that gives…

During the division of Germany until 1989, paid to all persons entering the Federal Republic of Germany. The amount in DEM paid to citizens of the former German Democratic Republic (GDR: the former East…

A bank connects with customers primarily through its employees. Therefore, it must be a primary goal of management that employees equate themselves with the company. This task is referred to as customer-oriented staff management.…

As a special field of financial psychology, the attempt to explain the (market) psychological influences on all actions in the financial market and thus also on price developments. – It should be emphasized that…

In older documents – a promissory bill for money granted as a pledge to build or repair a ship. – In Switzerland, a deed for a mortgage taken out on a piece of land.…

A tax, usually small, which in former times had to be paid by wealthless inhabitants of the municipality with inferior rights – also called Beisitzer, Beisassen, Einläufige, Gadamer and Gademer. They had no voting…

Unless otherwise defined on the exchange, an order just at the opening or just before the close of trading hours (transaction at the opening or close of the exchange). – See exchange functions, foreign…

In general, a benchmark as a “yardstick” (standard or average by which similar items can be compared), namely, in relation to investments, a – comparative portfolio (benchmark portfolio) or – an index that measures…

Liquidity provided by the central bank to the banking system to ensure the smooth fulfillment of reserve requirements. – Cf. ECB Monthly Bulletin of November 2006, pp. 93 ff. (there also breakdown of banks’…

A medal with the image of Saint Benedict of Nursia (480-547), founder of the Order of the Benedictines on the obverse and the Benedictine cross and incantations in abbreviations (CSSML; NDSDM; VRSNSMV; SMQLIVB) on…

In older documents, the regular income that a clergyman received from a monastery position; he was then also called beneficiary and titulant. As a rule, the income depended on the harvest, and therefore the…

The address ultimately benefiting from a financial flow – usually related to the income from a security – (final beneficiary), and not necessarily the customer for whom the bank holds this security (the address…

The right to receive some or all of the benefits of ownership of a security or other financial instrument, but the asset is legally owned by another party. Attention: The financial encyclopedia is protected…

Someone who is a beneficiary in an employee benefits institution or pension fund; the beneficiary (the person who is entitled to the benefit of any employee benefits institution). – See Retirement Assets Act, Retirement…

In insurance, the person or organization named in a policy that will receive the life insurance in the event of an insurer’s death. – Someone to whom assets are transferred in a will (a…

In the financial market in general, the legal betterment of a customer compared to others. – In particular, in the case of insurance policies, the betterment of a policy holder (more favorable situation of…

Doing nothing about a problem, in the hope that it will not be serious or time will solve it. – A central bank basically bases its policy only on domestic economic conditions. It ignores…

The act of leaving something to someone by will (the act of giving or leaving personal property by a will). – The act of giving or leaving personal property by a will (the act…

A call or put option which can be exercised on a specified set of predetermined dates during the life of the option. This is, as it were, an option on an option. – See…

In older financial language, a profit obtained through deceit in business transactions (profit from fraudulent transactions and deceitful business). The word comes from Yiddish, and not – as claimed in some sources – from…

In older documents, the fee for midwifery services rendered by a midwife (accoucheuse; Weissfrau); besprechel = here: to make use of someone. – See bed fee. Attention: The financial encyclopedia is protected by copyright…

In financial terminology, best means best possible, most favorable, cheapest, at the lowest cost, at the lowest price or – especially on commodity futures markets – of the highest quality, first grade, perfect condition,…

The principle that – irrespective of the provider – the bank’s customer is always offered the financial product that best serves his or her identifiable interests. This also excludes that bank employees are paid…

In the case of banks and insurance companies, sales to persons who have passed midlife in terms of age. – See Dinks business, Denture investment, Oldie business, Powerage financial market, Silver economy, Singleïsierung, Woopee…

Best Execution Policy): The obligation for financial service providers to execute client orders – on the most favorable terms and – in a manner that is comprehensible to the client, as well as –…

A term used by the supervisory authorities to describe the search for and specification of such procedures that – make operational processes on the financial market and thus also within the banks as efficient…

Measure of the relationship between the price movement of a security, in the narrower sense of a share (e.g. Deutsche Telekom AG), and the share index, e.g. Dax: Dax. A beta factor of >…

Former fee paid by an apiarist (apiarist: breeder of wild bees; often feral strains of the honey bee) for the right to apiarize in a district. – See bee premium, apiarist’s fee, zeidler’s fee.…

Popular graph illustrating the equilibrium on the labor market in terms of job vacancies and unemployment. Central banks are usually cautious about the significance of the Beveridge curve. This is because – the economy…

Unless otherwise defined in older financial language, a signed promissory bill or bill of exchange, but in which the amount has not yet been entered. – See blank credit, blank form. Attention: The financial…

preview): Unless otherwise defined, the preview of upcoming monetary policy published by the U.S. Federal Reserve. – A neutral bias means that interest rates will remain unchanged in the near term. A positive (negative)…

In older documents, the term for money accumulated for the purpose of drinking orgies, especially in students’ fraternities and coteries. – Drinking orgies (boozing) were also called bacchanals (bacchanalias) in earlier times. In the…

The price offered by a potential buyer of an asset (price at which a potential buyer is willing to pay). – See ask price. Attention: The financial encyclopedia is protected by copyright and may…

On the stock exchange, the difference between – the demand price (bid) and – the offer price (ask) – for a financial instrument – at a given point in time. – See bai-kai, exchange…

In open market operations with the central bank, the ratio between banks’ bid volume and the allotment amount. – See American allotment procedure, tender, restricted, allotment rate, allotment procedure. – Cf. Monthly Report of…

Within the meaning of the German Securities Acquisition and Takeover Act (Wertpapiererwerbs- und Übernahmegesetz, WpÜG) of 2002, these are – natural or legal persons or partnerships, – who, alone or together with other persons,…

Joking term invaded from student language for a coin or bill, spent by young men on beer (a witty reference to the fact that some young men’s money even today is largely spent on…

In reference to the financial market, to designate a transaction, circumstance, or even a person as weighty, extensive, significant, stately, influential, clearly influencing market events. Attention: The financial encyclopedia is protected by copyright and…

As a rule, big banks have – lower unit costs because fixed costs (capacity costs) are spread over a larger output volume, – better utilization of supply capacities, – more prudent risk management because…

In England, the popular term for a ten-pound bill or an amount of that value (the sum, and a ten pound bill). – See Bob. Attention: The financial encyclopedia is protected by copyright and…

In the U.S., the New York Stock Exchange (NYSE) in Neuyork. – In Germany, sometimes also said by Deutsche Börse in Frankfurt am Main. – Cf. ECB Monthly Bulletin, November 2007, p. 67 ff.…

The first three digits in the usually five-digit indications of exchange rates (the first two or three digits of a foreign exchange price or rate). – For example, if on June 11, 2007, 9:30…

Since 1986, the British business magazine “The Economist” has been calculating the ratio of the values of the most important currencies to each other. This involves determining – how much a standard product, the…