English

In relation to an economy, the degree to which the population is supplied with goods. This is measured – on the one hand – and in the past almost exclusively – by income per…

In the case of investment funds, the share of risks in relation to fund assets. In principle, the regulatory limit of 100 percent may not be exceeded. – See Leveraging. Attention: The financial encyclopedia…

Unless otherwise defined, the comparative ability to convert an asset quickly into cash. Money has the highest degree of liquidity. This is because cash does not need to be converted into anything in order…

At the ECB, the different possibilities of deposits to be converted into central bank money (degree of liquidity). Demand deposits have a high degree of liquidity, savings deposits a low one. – See liquidity,…

The ratio of the sum of total imports and exports to gross domestic product. This ratio roughly indicates the global division of labor in an economy. – Germany’s degree of openness was around 95…

In a national financial market, the degree to which supervisory regulations are clearly described in legal terms and applied objectively, objectively and quickly. – Empirical evidence shows that in the course of the internationalization…

In a national financial market, the degree to which supervisory regulations are clearly described in legal terms and applied objectively, objectively and quickly. – Empirical evidence shows that in the course of the internationalization…

In older financial language, this means tenfold, ten times the amount of money. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor…

A fund derived from allocations made from net profits and intended to provide for possible loss on account of bad debts or losses arising through guarantees. – See Liquidity management. Attention: The financial encyclopedia…

In older financial parlance, an employee who blabs out business transactions from an institution; an informer, a chatterbox (babbler, chatterbox). – See banker’s regular, misstatement, floor gossip, employee duty to inform, whistleblower. Attention: The…

With regard to the financial market, this refers to – the system conflict (a state of tension between incompatible and, therefore, hardly to combine appropriately targets) between – financial markets that revalue every second…

In older documents, a debtor who assigns his own claim against a third party to his creditor. – See delegation. Attention: The financial encyclopedia is protected by copyright and may only be used for…

In older documents, the consensual modification of a debt relationship from one creditor to another. The creditor who initiates a transfer is called the delegant (constituent, consigner). The debtor who is instructed by the…

In general, the reduction of leverage. – The replacement of debt by equity (process undertaken by a company in an attempt to reduce its financial leverage, or the degree to which the company is…

Unless otherwise defined, the percentage of outstanding loans in a loan portfolio that are delinquent. This is the proportion of borrowers who are in arrears with their obligations (redemption, interest payment, interest). Even in…

After 2000, the term for a debtor who does not meet his payment obligations (a debtor being overdue in payment). – See default, default-loss, covenant, loan, revoked, downgrade trigger clause, third-party due clause, third-party…

A company – withdraws from the stock exchange entirely of its own accord or – is excluded from the stock exchange, for example because of a violation of the stock exchange rules (removal of…

From the technical language of project management (project management: the planning, organizing, safeguarding, and managing resources to achieve specific goals) also into the financial language penetrated term in the meaning that due to (by…

The transfer of assets – in the financial world of financial instruments or exchange-traded products – by means of physical exchange or obligatory [= binding in law] book entry. – As a process: the…

Payment to the commission agent for goods given to him for commission but later ordered back, see the legal definition in § 396 HGB (German Code of Commerce). Attention: The financial encyclopedia is protected…

a mechanism in a special exchange-for-value settlement system. This ensures that the final transfer of one asset occurs if and only if the final transfer of [an]other asset[s] occurs (a mechanism in an exchange-for-value…

In the case of a call option, it may be contractually agreed that the counterparty – the writer of the option – will physically deliver the underlying asset upon exercise. This must be provided…

Allowance for doubtful debts. – Assumption of liability to the creditor for the payments of a debtor. – According to § 394 HGB (German Code of Commerce), the duty of a commission agent to…

Correlation factor between forward price fluctuations and the change in premiums for the option on the underlying forward contract. – The delta changes with each price movement. – See beta, volatility. Attention: The financial…

Balances held at a bank that can be withdrawn immediately by check, bank transfer or debit card. From the central bank’s perspective, they have a very high degree of liquidity. – See credit balance,…

Balances held at a bank that can be withdrawn immediately by check, bank transfer or debit card. From the central bank’s perspective, they have a very high degree of liquidity. – See credit balance,…

Setting monetary policy with a view to stabilizing domestic demand, which some policymakers have insisted on. – This guideline as a priority automatic instruction to act is ruled out for the ECB under Article…

The increase in prices by firms due to the fact that demand from home or/and abroad has increased, resulting in persistent bottlenecks (bottlenecks: the capacities are unable to match the additional demand-volume required) in…

Price increases caused by shifts in demand. – If, for example, demand shifts from steel to aluminum, the steel mills have to pass on the very high fixed costs to a smaller production volume…

Measure with the aim of providing primarily government services, but also certain operational services, as economically as possible (economical: performance-to-cost ratio) by allowing the “best host” to benefit. In pursuit of this aim, a…

At a bank – also at an insurance company) the decision – not to enter into a relationship with a customer or also a customer group – or – to terminate an existing relationship…

The elimination of physical certificates or documents of title that represent ownership of securities so that securities exist only as accounting records. – See stock exchange, electronic, custodian, immobilization, debt-belly claims, central securities depository.…

The alleged disconnection of the financial sector from the real economy. The word is used in a derogatory and accusatory sense, especially in political science and the media. – Unfortunately, in no other industrialized…

With regard to the ECB and its European banking supervision, the accusation is made that the bodies and persons acting here are not subject to any control by the elected representatives of the people.…

Unless otherwise defined, all government revenues related to the future, compared to expenditures to be made. – See aging, demographic hardening, Lisbon agenda, public debt, sustainability of public finances. Attention: The financial encyclopedia is…

Unless otherwise defined, all government revenues related to the future, compared to expenditures to be made. – See aging, demographic hardening, Lisbon agenda, public debt, sustainability of public finances. Attention: The financial encyclopedia is…

The adjustment of social security systems – especially health insurance, pension insurance and long-term care insurance – to the aging of the population. This affects monetary policy insofar as the burdens of aging would…

Formerly said of the loss of value of a coin, measured by its exchange ratio to other domestic or foreign means of payment. – The abandonment of validity, the extinction of a coin’s or…

Payment to the shipowner (Reeder; proprietor of a ship) if the ship is not loaded or discharged in accordance with the contractual agreement between the shipowner and the charterer (idle period, detention), see for…

In old documents, also the share in a ship or its cargo (co-ownership of a ship or the cargo of a freighter). The corresponding bearer security could be deposited as collateral for a loan…

Temporary payment to farmers who divert surplus food intended for human consumption into feed troughs. The products concerned, such as cereals or sugar, are rendered unfit for human consumption via the use of coloration…

Action taken after World War II in 1945 against employees, including those in banks, who were members of the National Socialist German Workers’ Party (NSDAP) or its branches, or who were classified by a…

In financial jargon, the general division into individual units, especially in relation to money and securities and in stock exchange transactions. – On the part of a bank, the allocation of the total loan…

In financial jargon, the general division into individual units, especially in relation to money and securities and in stock market transactions. – On the part of a bank, the allocation of the total loan…

In the financial market, the indication of the currency in which – the nominal value of a security or – a contract is denominated at the time of conclusion – for example: EUR –…

One of the measures used to assess movements in EURIBOR. Forward contracts based on EURIBOR are assumed. The model then assumes that market participants are risk-neutral. The part of the interest rate that is…

Joking term for expenses incurred in connection with the dental restoration of chewing tools that are usually lost due to age; these are also called third teeth in German and money teeth in English.…

Generally, a shortage: a shortage expressed either – in money (shortage; minus amount), – in weight (shortage in weight), or – in terms of quantity (shortage; deficiency, shortfall quantity). – See shortage. Attention: The…

In older documents – direct cash theft or – misappropriation (embezzlement; defalcation) of entrusted money by other means, such as fictitious vouchers. – See defects, custody account embezzlement, financial rogue, money embezzlement, basket pennies,…

In older documents, the loss resulting from the difference between the market price on the one hand and the lower price at which farmers and artisans had to deliver to the militair or to…

Unless otherwise defined, the loss in value of a non-renewable asset, such as an oil well or iron ore deposit, with each production unit. Attention: The financial encyclopedia is protected by copyright and may…

Unless otherwise defined, the loss in value of a non-renewable asset, such as an oil well or iron ore deposit, with each production unit. Attention: The financial encyclopedia is protected by copyright and may…

The difference in interest rate between – an unsecured deposit (EURIBOR) and – a secured deposit (Eurepo) on the interbank market. As a rule, the corresponding difference is expressed in basis points and refers…

The forward price of a foreign exchange is lower than the spot rate, i.e. it is lower than the daily rate. – See foreign exchange forward, report, swap rate. Attention: The financial encyclopedia is…

The transfer of money – in the narrower sense of cash – to an account at a bank, building society or insurance company. – The inflow of cash into a business, usually through the…

In German legal terminology, credit institutions that accept the deposits (Depositen) of business entities and engage in lending business; cf. section 1, paragraph 3d of the German Banking Act (KWG). Attention: The financial encyclopedia…

In older documents, securities deposited as security for the depositary; in the sense that the depositor thereby indicates that he intends to render faithful service or to pay for any loss. – Securities that…

standing facility of the ECB which enables counterparties to place balances with the respective national central bank until the next ESCB business day at a pre-specified interest rate. – The deposit facility fixes the…

Regulations that ensure that deposits are not lost in the event of a bank’s insolvency. Originally viewed with suspicion because of the risk of moral hazard, correspondingly designed protection schemes are now widespread in…

Declaration issued by the German government in October 2008 during the financial crisis to protect households’ savings and time deposits with German banks. According to this declaration, the state is liable for these deposits…

The intention to establish a fund, initially in the euro area and later in the EU as a whole, to which the deposit guarantee schemes of the member countries contribute their capital. However, joint…

Under Section 34 DepotG, very broadly defined as the unlawful disposal of a security that has been entrusted to a custodian or pledgee – also called ingrossatus in older documents. – See depeculation, custodial…

In older documents, the sum borrowed from a bank (or, less frequently, from the central bank on the part of a bank) against the provision of collateral; in today’s terminology, a repurchase agreement. –…

Transactions through which one becomes a debtor. In the case of a bank, these are primarily the cash deposits it has taken on, loans it has taken out or bonds it has issued. Attention:…

An institution with the function of either storing securities in paper form or recording them electronically and keeping records of ownership of the securities. – See dematerialization, custody, custody business, immobilization, depository. Attention: The…

The amount from which – a company is obligated to a bank or – a bank is obligated to the central bank from discounted bills. Attention: The financial encyclopedia is protected by copyright and…

Place where money and valuable objects are stored; in particular, a safe deposit box, also referred to as a depository in older documents; see Arts. 688 et seq. BGB (a secure room or rooms…

In general, the amounts of money entrusted to a bank – or, more rarely, to building and loan associations – by its customers in return for interest payments. – In a narrower sense, the…

Older term for deposits – i.e., the sums of money entrusted to banks by customers in return for interest – especially for demand and time deposits. Correspondingly, the term Depositenbank (deposit bank) is also…

At the ECB – demand deposits that are freely transferable, usually by check, transfer, or electronic order; and – nontransferable balances that are withdrawable upon request or by close of business the following day.…

In the ECB’s statistical system, these are savings deposits that require depositors to observe an agreed period of notice before they can dispose of the deposits. – Deposits with an agreed notice period of…

In the ECB’s statistical system, these are – time deposits with a predefined maturity which, according to national practices, cannot be converted before the expiry of the agreed maturity, or can be converted only…

In old documents, the right to continue to enjoy the income from the land transferred to a monastery or parish until the third generation. Attention: The financial encyclopedia is protected by copyright and may…

Abschreiber (amortisation, writedown; write-off; rejection): According to IAS (35.5, 38.7), the systematic and regular write-down of an asset over its projected life. According to EU regulations, depreciation is generally calculated on a straight-line basis.…

The amount which the relevant tax authorities allow a company to deduct from its taxable income. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express…

Unless otherwise defined, a depression is a decline in economic activity in an area, however measured. – A Great Depression (usually spelled that way [i.e., in capital letters]) is when sales in all markets…

In older financial terminology, the loss in value of money or an asset. – See devaluation, demonetization, inflation. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes…

Unless otherwise defined, as in the school system, this refers to transfers in kind – usually goods – from the employer to the employee in addition to the basic pay, such as the beer…

In financial journalism, a competition between two or more institutions, usually related to a local market; a local rivalry. – Dogfight (a fight as between dogs) has the secondary meaning of dogged competition, a…

The release of a (listed) company from the disclosure obligations required by the supervisory authority. Even if a public company delists, regulators may require it to continue to comply with high-cost reporting requirements as…

In relation to financial markets, this refers to the partial or complete removal of restrictions imposed by law (the lessening or complete removal of constraints on financial industry), as in the case of banks…

Regulation in force in Germany since 2004 and amended in 2013, under which special regulatory requirements for risk management and risk measurement are derived for investment funds in which derivatives are used to manage…

According to IAS (39.9), a financial instrument or other contract that contains all of the following three characteristics: – the value of the contract changes as a result of changes in a specified commodity…

In Germany, a regulatory requirement for risk information in derivatives transactions. In particular, information must be provided on – the underlying, – the economic relationships and functioning of the products such as, above all,…

A preferred form of derivatives in certain market segments has been contracts between two partners. As a result, the overall market turnover of derivatives is not very transparent for third parties and, above all,…

According to IAS 39.10, a component of a compound (structured) financial instrument, also called a hybrid financial instrument and sometimes just a hybrid, – that also contains a non-derivative host contract (an insurance contract,…

Principles agreed at the end of 2006 by leading issuers of derivatives for trading in these securities. – The focus is on the obligation of providers to present the respective design of the derivative…

There are various classifications of derivatives. One of the most common in recent years is the classification into – options, – forward transactions in the narrower sense as contracts traded over the counter, forwards,…

The liquidation of savings, usually said in reference to private households. – New government borrowing. – Household borrowing: anticipated consumption, sometimes called excess consumption. – In the context of demographic rigidities, also omission of…

In older literature – official fees in general, and – the fee of counsel in particular. – See fee, charge, chancery fee, margin, commission, remuneration, tax. Attention: The financial encyclopedia is protected by copyright…

Payment made by someone who withdraws from a contract (not synonymous with contrition money). – Usually a one-time payment to employees who voluntarily leave an employment contract, also referred to in this context as…

Abbreviation commonly used in the financial world for the German Federal Statistical Office, based in Wiesbaden (state of Hesse). Attention: The financial encyclopedia is protected by copyright and may only be used for private…

Recommendation to investors to purchase certain financial instruments and designation of a seller. This service is considered a subspecies of investment brokerage and requires permission. – See investment advice, advice, fee-based advisor, market abuse…

In psychology, the lower limit from which a sensory organ perceives stimuli (the level at which an increase in a detected stimulus can be perceived). The word was transferred from there to the inflation…

A former one-time payment to Army personnel leaving military service, sometimes called decampment pay. – See severance pay, detraction pay, lifting pay, discharge pay, veteran’s pay. Attention: The financial encyclopedia is protected by copyright…

In older documents, a levy that concerned the tenth part of the objective yield, such as grain, beets or wine, or, after discharge of the obligation to deliver in goods, a corresponding payment in…

Formerly a Dutch and Low German divisional copper coin at the lowest end of the issued coins.- A very small amount of money. – See nasarinchen, peanuts, pezzi, pitis. Attention: The financial encyclopedia is…

In relation to the financial market, the gift of foresight of future market events. In Internet forums and direct e-mails, people are introduced who allegedly possess such visionary abilities and who usually sell their…

A privately held company founded in 1992 and headquartered in Frankfurt am Main. Deutsche Börse AG also includes Deutsche Börse Clearing AG, Deutsche Börse Systems AG, Fördergesellschaft für Börsen und Finanzmärkte in Mittel- und…

As the central bank of the Federal Republic of Germany, it has been part of the European System of Central Banks (ESCB) since the start of European Monetary Union in 1999. It participates in…