English

The sending of cash to a payee, in the past regularly by the postal service. – Due to the fact that almost all private households in industrialized countries now have an account with an…

The amount of central bank money that a bank needs to maintain its solvency, sometimes also called cash reserve. – Calculated as a percentage of total deposits, the cash reserve ratio (cash reserve ratio)…

“Cash Reserves in Days”, also known as the “Days of Cash on Hand”, is a financial metric used by organizations (especially non-profit ones) to evaluate their liquidity or financial stability. It represents the number…

In the case of an option, a corresponding cash payment is made instead of delivery of the underlying on the due date (deadline). This corresponds to the difference between the strike price and the…

Generally, any onoff payment made by way of compensation for whichever claim. – The settlement of a non-monetary claim, such as a claim for delivery of goods under an option contract, by means of…

Term from German budget law, explained in more detail in Section 62 of the Federal Budget Code. According to this, in order to avoid borrowing authorizations, a reserve in cash is to be built…

In the language of central banks, the – personal transport either by oneself or by others or – dispatch (letter mail) of paper money and coins from one country to another. The statistical recording…

Companies that deliver or collect cash and documents on behalf of others – primarily banks, retail chains (CH: wholesale distributors; trade chains) and major event organizers – usually using armored road vehicles. – See…

Unless otherwise defined, the introduction of EUR-denominated banknotes and coins on January 1, 2002, in the eleven countries that had joined the European Monetary Union by that date. In Germany, coin packets (starter kicks)…

Legal tender in the form of banknotes and coins. Up to now, cash has still been by far the most frequently used means of payment at the point of sale as the place where…

Unless otherwise defined, this is the benefit derived from holding cash. At the level of private households, this is seen primarily in the fact that – unexpected purchasing opportunities (“bargain buys”) can be taken…

Unless otherwise defined (caution: “cash back” unfortunately refers to many different things!), the possibility of receiving cash in exchange for a check or card at a company’s cash desk (e.g., cash desk of the…

Term taken from IAS 36.65 et seq. in connection with the impairment test and defined there as a smaller asset that generates inflows and outflows of cash independent of the use of other assets.…

The contractual obligation of a company – usually related to a target company in the context of a leveraged buyout – that any net inflow of cash, the cash flow, must first be used…

Currency that is held by banks and is stored in their vaults in order to meet the business needs of the institution. Attention: The financial encyclopedia is protected by copyright and may only be…

Checking of cash in hand and reconciliation with the accounting records (cash books) in a company or at a public agency. As a result of cashless payment transactions with computerization of monetary transactions, the…

The view that events on the financial markets as a whole and on the stock exchanges in particular can be captured (explained: traced, often even: sketched out) with explanatory approaches that have been worked…

The view that events on the financial markets as a whole and on the stock exchanges in particular can be captured (explained: traced, often even: sketched out) with explanatory approaches that have been worked…

In the past, the usual lending fee for the container when delivering goods packed in casks and canisters (jerrycans). Upon return of the intact cask, the lending fee was refunded. – See Emballage. Attention:…

A small case or chest, especially for money, jewels and other precious items. – Private treasury of a regent, then often private casket and in the older literature also Hafne – originally called only…

Fundamental ruling of the Court of Justice of the European Communities (ECJ) in Luxembourg on February 20, 1979, according to which the Treaty on European Community (TEC; renamed “Treaty on the Functioning of the…

In old documents, a contribution for the construction or maintenance of a castle, and in particular a refuge, where the inhabitants of open villages not protected by a defense wall could retreat to save…

A tax formerly levied by (port) cities for keeping cats in public warehouses and cellars, also called cat penny, cat guilder and similar. – Tax levied on private cat owners by the municipality; cat…

As a rule – issued by insurance companies – mainly through special purpose vehicles set up for this purpose – high interest bearing securities – usually limited to relatively short periods of time –…

In public budgets, a sum of money accumulated from government revenues to be immediately available in the event of serious disruption of social life-such as earthquake, mass illness, flooding, or climate-related crop failure. –…

Part of operational risk. Catastrophe risks include fires, severe weather – storm damage, floods – , earthquakes and related disruptions to the energy supply (electricity cuts; power failures) and similar events. A pandemic is…

In financial jargon, the payment to individuals who bring a new customer to a bank or insurance company. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes…

In accordance with the provision of Article 79 of Directive 2006/48/EC of the European Parliament and of the Council of 14 June 2006 relating to the taking up and pursuit of the business of…

tier, level): Collateral originally marketable at the ECB which fulfills certain eligibility criteria defined by the ECB and uniform for the euro area as a whole. – These criteria included – denomination in EUR,…

A regular – usually annual – contribution of all (Catholic) churches of a diocese to the bishop’s church (cathedral; cathedral), introduced in some countries to this day (a moderate contribution payable annually to a…

Amount that the shipowner used to pay for caulking the ship, which was mostly made of wood. – Cracks and small holes on the ship’s outer wall and deck were filled with tow, tallow,…

Influences that cause the value of money to decrease. – See cost-push inflation, deflation, digital, demand-pull inflation, demand-shift inflation, monetary inflation, monetary union, value of money, purchasing power. – Cf. ECB Monthly Bulletin of…

In older documents, the fee for storing merchandise in a storeroom in general and in a cellar vault in particular (charge for storage in a cellar). Attention: The financial encyclopedia is protected by copyright…

Former tax that taxpayers had to pay to support the army units fighting on horseback (cavalry). – Landowners often had to pay a significantly higher cavalry fee (also called horse money); the levy was…

In older documents, the amount realized on a bill of exchange when it is sold or presented for discount – in the case of foreign currency (xeno currency), at the prevailing rate. Attention: The…

Term used in business journalism for the subprime crisis that erupted in the summer of 2007 because collateralized debt obligations (CDOs) were at least the triggering cause of this turbulence on the financial market.…

Body of the Committee of European Banking Supervisors (CEBS) with the main task of achieving the most uniform possible application of supervisory provisions for banks operating across Europe. The body sees itself as an…

Special fee in nurseries and schools to host festive events. – Formerly a levy into the treasury of the guild on the part of those masters who employed journeymen in excess of the number…

Unless otherwise defined in the jargon of the financial world in the U.S., the central bank of Neuyork within the U.S. central banking system (a nickname for the Federal Reserve Bank of New York;…

In the case of an institution – less also said of a central bank – the management guidelines for the institution as a whole or for individual areas, such as regulations for the securities…

In Germany, a system for the central custody of securities by means of a variable global certificate per issue, which is continuously adjusted at Deutsche Börse AG to the portfolio held in custody. Dividend…

The frequency and extent of monetary policy actions taken by a central bank within a given period. – See code words, forward guidance, guidance, verbal, open-mouth policy, fuzziness, constructive. – Cf. ECB Monthly Bulletin…

The central bank’s unauthorized actions, i.e. actions that are not covered at all or at most only marginally by its statutes. – In the slipstream of the turmoil surrounding subprime crisis and leading into…

Declaration made and publicly announced by central banks in Europe, usually every five years, on their intentions regarding the handling of their own gold holdings. The first sentence (the preamble) of the declaration of…

Assessment by the central bank of whether collateral submitted to it meets all the relevant requirements. Central banks have developed their own procedures for this purpose, which determine central bank eligibility. – See credit…

In Germany, the Deutsche Bundesbank was responsible, in accordance with Section 7 of the German Banking Act (KWG), for the ongoing supervision of institutions as well as for conducting and evaluating banking audits and…

In summer 2012, the ECB announced its intention to introduce interest rate ceilings (ceiling rates, [interest] caps) for the government bonds of stumbling EMU members. In this case, the ECB will buy securities on…

In summer 2012, the ECB announced its intention to introduce interest rate ceilings (ceiling rates, [interest] caps) for the government bonds of stumbling EMU members. In this case, the ECB will buy securities on…

The long-held vision that there should be only one supervisory authority in the EU as a whole. – By and large, this has been achieved as of 2014 with the establishment of the European…

Formerly said of the respective state bank (giro center; Girozentrale) of the savings banks in the individual federal states. – The former central bank of the cooperative sector (cooperative banking institutions: Raiffeisen banks, Volksbanks,…

Formerly said of the respective state bank (giro center; Girozentrale) of the savings banks in the individual federal states. – The former central bank of the cooperative sector (cooperative banking institutions: Raiffeisen banks, Volksbanks,…

In general, the exchange rate of a currency within an exchange rate system which is to be kept as stable as possible with respect to the intervention currency. – In particular, the exchange rate…

Unless otherwise defined, the official exchange rate between any two currencies participating in the former EMS exchange rate mechanism, around which fluctuation margins were fixed. Attention: The financial encyclopedia is protected by copyright and…

Generally, a place of special achievement, such as an elite school or a top research institute; there are no rules as to who may call themselves such. – In the financial sector, unless otherwise…

In ancient documents, a person subject to soccage (duty) to deliver to the altar of a church an annual quantity of (bee) wax, or to pay a corresponding sum upon redemption of the soccage.…

As defined by the ECB, the deposit of a large sum with a bank at a specified interest rate with a short-term maturity. Attention: The financial encyclopedia is protected by copyright and may only…

When a business customer applies for a loan, banks are generally required to submit a balance sheet certified by an auditor or tax advisor in accordance with Section 18 of the German Banking Act…

Form of commercial paper in which banks place short-term bearer bonds with a maturity mainly between three and twelve months on the market. They are typically placed with institutional investors. – See euro notes.…

Unless otherwise defined, the exclusion of a security from trading on the stock exchange by the stock exchange management. – This is to be distinguished from a temporary suspension of the price quotation. –…

In relation to the financial market, either – the largest bank or – the stock exchange with the highest turnover in a country. – With regard to banks, it is important to bear in…

Formerly a fee for – the drafting and written execution or – the transcription of a document (Kopialiengeld) by an authority. – In particular, also the payment which, according to a list published by…

Generally, a significant deviation from the previous course of a company’s activities; in a narrower sense, a sharp drop in profits. A listed company must publish such a striking deviation in an ad hoc…

Sudden or gradual changes in the expectations of market participants in general and of financial market players in particular, as in the case of the subprime crisis. – As financial psychology has shown, a…

Sudden or gradual changes in the expectations of market participants in general and of financial market players in particular, as in the case of the subprime crisis. – As financial psychology has shown, a…

Someone pays in a certain amount of money in one place, such as Florence. This sum is collected again in another, distant place, say Lisbon. Present money is thus exchanged with absent money. A…

The reputation of a customer in general and a borrower in particular with a bank (the reputation of a customer in the eyes of a bank, particularly the degree to which a potential borrower…

Originally a tax payable in Islamic rule by non-Muslim subjects; then in older literature often said generally for a levy. – See guard money, detz, harai, protection money, tolerance money. Attention: The financial encyclopedia…

Former levy on the sovereign – by the charcoal burner for permission to produce charcoal (charcoal: a black, porous, carbonaceous material, chiefly consisting of carbon, produced by the destructive distillation of wood) in the…

Generally, the transfer of an amount back by the bank when a payment has been revoked by the customer or a debit has been disputed for other reasons. – In credit card business –…

In the ancient church, a levy that bishops requested from local congregations in cases of special need. – See dispensational money, church money, bell masters, obvention, offering money, palliative money, St. Peter’s penny, place…

Mostly set up in the legal form of a foundation or a charitable association with the purpose of performing charitable work in the field of society. Such entities fulfill extremely important tasks in a…

The elaborate arrangement of all accounts in a bank’s and a company’s accounting system, tailored to the circumstances of the business (a list of all accounts tracked by a single accounting system, designed to…

A security or asset that is in a sustained price increase (long-term upturn). Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor…

Graphs in curve form to illustrate the price development of a value – currency, securities, commodities, futures contracts – on the stock exchange. Some analysts (chartists) derive price forecasts from such charts, usually taking…

Investors on financial markets – and here again especially on stock exchanges – who – buy securities that are currently on the upswing and – for the purpose of profit-taking sell them again at…

In earlier times, a fee to be paid immediately in cash by carters for the use of certain roads, comparable to today’s tolls. The toll was usually paid to the state treasury for the…

On the financial market, a security that has been designed to be deceptively similar to a highly rated product – and usually a blue chip – especially with regard to the name and/or logo…

In older financial language meaning – a falsification of accounts (manipulation of accounts) as well as – trickery behavior towards a business partner to his disadvantage. The word is derived from Yiddish. – See…

In older financial language meaning – a falsification of accounts (manipulation of accounts) as well as – trickery behavior towards a business partner to his disadvantage. The word is derived from Yiddish. – See…

A method introduced in Germany in September 2007 by the banking industry associations together with the Deutsche Bundesbank to clear paper checks of EUR 6,000 or more by transmitting electronic images. Because around 30,000…

Check read electronically in the course of the image-based check collection procedure (the digital reproduction of an original paper check; financial institutions and payment processing centers electronically transmit data from substitute checks for settlement…

In the past, the entries made in the course of the cash audit – at a bank usually daily after close of business – about cash transactions (deposits, withdrawals) and the cash on hand…

In the jargon of institutions, pejorative term for individual departments, mostly referring to areas such as long-term planning (strategy planning; strategy department) and the entire marketing area. – See event marketing, infighting, kiddies manager,…

Subsidy paid by the Swiss government to cheese dairies in the Alpine region. – In the past, the obligation (soccage; Fron) of a serf (villein) to deliver a certain amount of cheese to the…

As a rule, customers cannot dispose of a check deposited with the bank until a certain period of time has elapsed. In Germany, this is up to ten banking workdays, and up to one…

Cheque: Security containing an unconditional payment instruction from a customer of a credit institution to its bank (drawee) to pay a specified sum to a third party (beneficiary, remittee; drawee) at sight (payable when…

The sale of certain assets with the goal of reporting a favorable balance sheet (selecting specific assets for sale with the aim to record desired gains or losses). – See disclosures, disguised, accounting, creative,…

The proposal discussed in the 1930s at the University of Chicago (Illinois, U.S.A.) to ban the creation of money by banks and to allow only full money. It was believed that loans granted by…

In the jargon of the institutes, a colleague who duplicates whichever document coming on his work desk and retains it in his drawer. – See Airbag, File Abuser, Jack-of-all-trades, Autonomously Acting Unit, Behavioural Branding,…

A person comparable to an insurance actuary who is responsible for implementing a bank’s risk policy guidelines. The CRO regularly informs the bank’s Board of Management and the Risk Committee set up within the…

Payment by the state to families who raise their children in the home environment, thus relieving the burden on cost-intensive governmental institutions. The childcare supplement is also called the child-rearing bonus and – as…

The debtor – offers his children as a pledge for a loan or – the legal system allows the creditor demanding payment (also called liquidator in the older financial language) to collect the children…

Monthly allowance for a newborn child paid by the state to families or single parents and regulated in detail by corresponding laws. – See beer allowance, parental allowance, child allowance, sufficiency allowance. Attention: The…

Supplement to salary (especially for civil servants) for dependent children. – Payments by the state to families or single and divorced persons for children; usually independent of the income of the legal guardians. Such…

Fee that must be paid for cleaning chimneys (flues, fireplaces, chimneys, chimney stacks) and inspecting combustion systems in all buildings. – In Germany, the compulsory sweeping of all types of chimneys (compulsory furnace and…

Since July 2005, the external value of the Chinese currency, the renminbi yuan, has been adjusted within certain ranges to a basket of currencies. – See Exchange rate. – Cf. Deutsche Bundesbank Monthly Report…

The very strong involvement of banks and funds in the Chinese domestic market since around 1995. Many loans are seen as purely speculative and therefore high-risk, especially since the longer-term age ratio in China…

The functional and/or spatial separation of confidentiality areas in securities services companies prescribed by the supervisory authorities. The transfer of information across divisions (wall crossing) and the involvement of employees from other divisions is…

A term that emerged after 2005 to describe the fact that the German (export) economy – is becoming increasingly dependent on trade with China, – China will also become Germany’s most important trading partner…

A widely used formula for calculating the deregulation of capital transactions in the financial market. – See degree of openness. – Cf. Deutsche Bundesbank Monthly Report July 2008, pp. 18 ff (development of the…