English

Allfinanzaufsichtsbehörde in England, formed in 1998 after the activities, products and markets of banks, insurance companies and securities dealers had increasingly converged and so-called financial conglomerates had emerged. The FSA formed the model for…

A very broad term in terms of content and scope, which defies precise definition – if only because of the constant emergence of new and novel types of business – and which can at…

According to the definition of the supervisory authorities, these include all companies that provide financial services without formally being credit institutions. The list of financial services includes, in particular, – investment brokerage, – contract…

A term that emerged at the latest after the Greek crisis became known in the sense that, contrary to the clear provisions of the European Treaties, a bailout would have to be provided in…

A list of measures developed by the International Monetary Fund to reflect the stability of a national financial system. However, the very extensive catalog also shows quite clearly how difficult it is to depict…

All companies and institutions involved in monetary transactions; the financial industry. – See financial industry, financial sector, financial sphere. – Cf. the detailed overview of stakeholders for the years 2001 to 2010 in BaFin’s…

A state in which the financial system is able – to bring the supply and demand for capital smoothly and successfully together at a point where the demand meets the supply, – to allocate…

Established in 2009 in the wake of the financial crisis that followed the subprime crisis, continuing the work of a “round table” since 1999 and linked to the Bank for International Settlements in Basel,…

In the course of the Financial Stability Act (FinStabG; German Financial Stability Act) of November 28, 2012, with the aim of ensuring the cooperation of German authorities in safeguarding financial stability. The AFS comprises…

not “Fund,” as is often read]: In the course of the Greek crisis in spring 2010, the EU ministers decided to grant Community assistance to members of the eurozone with high current account deficits,…

A body of experts from the finance ministries, central banks and supervisory authorities of the seven major nations, supplemented by experts from international organizations, established in 1999. Its task was to identify weaknesses in…

Body of new members chaired by the Secretary of the Treasury established in the U.S. in the summer of 2010 to deal with macroprudential oversight. Attention: The financial encyclopedia is protected by copyright and…

An independent annual publication issued by the Deutsche Bundesbank for the first time in November 2005. The report contains important data and assessments of macroeconomic risks, the international financial system, the banking system in…

Body of the EU’s Economic and Financial Committee set up in September 2003 with the aim of ensuring stability in the European financial sectors. Meetings are held regularly twice a year. At these, finance…

The information published by government statistical offices and the central bank on data and variables in the relevant financial market. – It is very important to pay close attention to the definitions and explanations…

The increase in the price of services provided by public enterprises – such as: Ports, water and gas utilities – beyond full cost recovery with the aim of using the profit thus generated for…

In a narrower sense, the central bank and the banks of a currency area taken together. – In a broader sense, the insurance companies and certain other capital collection agencies are included in addition…

Severe disruptions, up to and including complete collapse, breakdown of the financial system in a currency area or in the world as a whole. – Distortions – in one segment of the financial market,…

Financing and investment are primarily carried out with the involvement of banks. They play a decisive role in allocating loans to individual firms and industries. Asymmetric information between bank and borrower remains minimal; in…

Economic savings flow into the economic cycle via a range of different financial instruments, primarily bonds, equities, funds and derivatives. Banks do not act as interest-bearing lenders, but as intermediaries between debtors and investors…

In the course of the financial crisis following the subprime crisis (from English?) emerged swear word. It refers to a person or entity that deliberately destroys the financial system for their own personal benefit…

The taxation of all transactions on the financial market with a uniform or graduated tax rate depending on the type of transaction. At the beginning of 2014, eleven EU member states intend to introduce…

The professional procurement of payment orders. More specifically, a money remitter is a service provider that accepts funds from a payer for the purpose of making them available to a recipient, without necessarily maintaining…

Unflattering term for entities whose business purpose is asset management; usually said in connection with sovereign wealth funds. – See banking regulation paradox, shadow banks, asset managers. Attention: The financial encyclopedia is protected by…

The state of innocence in which a person lives until he or she has to pay for the first time in life income tax, insurance premium, or legal fees. Attention: The financial encyclopedia is…

A term used in business journalism to describe investors whose sole aim is – to make a profit as quickly as possible, and – to do so, as a rule, using practices that are…

All persons and companies involved in money transactions of any kind and to whom, as a rule, also – certain behavioral patterns and – their own technical language (terminology) are assigned. – Sometimes –…

Games in which the participants have to make decisions like in real life (games which are concerned with monetary features of virtual worlds. Like real finance, virtual finance is concerned with problems like inflation,…

A term that emerged around 2010 to describe speculative forms of investment in commodity markets. Investors are motivated by a mix of risks and expectations of long-term returns. Whether, and if so to what…

Financier, provider of capital, usually in a larger project (an investor on a large scale). – In older literature also a person who manages income at a company or at a public body. –…

In general, a process that provides an economic unit (company, private household, state) with purchasing power, i.e. the power to acquire goods. – In a narrower sense, the use of money by a company…

The availability of financial resources. It is considered to be dependent on market liquidity, i.e. the ability to carry out large-volume transactions at any time with only a minor impact on prices. – Cf.…

Facilities for monitoring payments for terrorist acts have so far been assigned to anti-money laundering by the supervisory authorities and international bodies. Cooperation with the relevant specialist units in the intelligence services is taking…

Facilities for monitoring payments for terrorist acts have so far been assigned to anti-money laundering by the supervisory authorities and international bodies. Cooperation with the relevant specialist units in the intelligence services is taking…

In the case of asymmetric information, the lender must include the risks arising from the debtor’s creditworthiness, which cannot be accurately assessed, in the interest rate. This is because – the lender must protect…

The sums and dates of settlement in the course of – a transaction, – an investment or – a task to be performed by a public entity. – Missing amount, often referred to in…

Unless otherwise defined, securities used by a central bank in the course of its open market policy. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without…

A loan program launched by the World Bank in 1993 for the health sector in developing countries. Further loans are only granted if progress is verified by independent reviewers, for example in the area…

In German gehobenere Sprache (sublime language), other term for a bank. – See Geldhaus, institute. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent!…

In German legal terminology, pursuant to Section 1, Paragraph 3a of the German Banking Act (KWG), a financial holding company – whose subsidiaries (subsidaries) are exclusively or primarily financial services institutions, and – which…

The subprime crisis of summer 2007 also developed into a financial crisis in Germany in the fall of 2008 because – contrary to expectations, a large number of German institutions held high levels of…

a general-purpose insult term for anyone the speaker hatreds, without specific reference to the original meaning of the word [copulation with an animal]): Strong insult word for a person working in the financial sector…

Generally, a payment that a natural or legal person must make as a penalty for culpable violation of provisions (legal provisions: laws, ordinances, decrees, guidelines, rules of conduct [such as in court], etc.) (money…

The fine used to be paid for forest offenses, also called forest crimes; primarily for wood breakage (also wood breaks; illegal cuttings). Attention: The financial encyclopedia is protected by copyright and may only be…

Irregular open market operations conducted by the ECB as the central bank, mainly aimed at smoothing unexpected liquidity fluctuations in the market. Accordingly, liquidity-providing fine-tuning instruments (reverse transactions, foreign exchange swaps, outright transactions) and…

The short-term compensation of disturbances in the economic cycle. – This is basically a matter for economic policy. This is because monetary policy impulses on goods markets are characterized by comparatively long lags; monetary…

Payment that a person or company is required to make for violating laws. – See neglects money, penalty money. Attention: The financial encyclopedia is protected by copyright and may only be used for private…

Payment that a person or company is required to make for violating laws. – See neglects money, penalty money. Attention: The financial encyclopedia is protected by copyright and may only be used for private…

In general, the penalty imposed by an authority; in the narrower sense, in Germany, the payment ordered for a violation of rules in road traffic. – In the financial sector, fines imposed by supervisory…

Percentage – sometimes per thousand – of pure precious metal in an ingot (bullion) or alloy (alloy: material created by melting together two or more different metals). – See wear, alliage, assay stamp, bullion,…

The Republic of Finland, with a population of just over five million, has been part of the euro area since its inception. The country hit the headlines in April 2011 when the Eurosceptic True…

A levy for fire insurance. Around 1750, a state and officially organized compulsory insurance (statutory insurance) against fire damage was introduced in many German regions in order to stop the impoverishment (pauperization) of entire…

Safely invested sums of money for the possible servicing of (small) investors in the event of a bank’s insolvency. – In the U.S.A., a certain per thousand of the value of a contract or…

In the stock market, the term used to describe a sharp upward or downward movement in the price of a particular security as a result of some machination. – See boom, bull market. Attention:…

In relation to the financial market, any contract under which performance is to be rendered at a specific time or within a specific period (time of performance); see Section 361 of the German Civil…

In the USA, the legal requirement that mortgage banks must also repurchase already securitized securities (i.e. collateralized debt obligations) if the borrower fails to make the first installments. – The purpose of this provision…

In the course of a true sale securitization, a bank sells a loan portfolio to a special purpose entity established for this purpose. The latter then issues bonds in the amount of the loans…

A bill accepted by a central bank – for rediscount or – as collateral for a loan. – See discountability, category 2 collateral. Attention: The financial encyclopedia is protected by copyright and may only…

Bills accepted by the central bank for rediscount without further ado. At the ECB, which does not have a discount policy, these instruments are accepted as tier two collateral. – See financial investment, discount…

In the case of a company, the ratio of cash and cash equivalents to liabilities. – At a bank, the ratio of cash to total customer deposits (the ratio of cash to total deposit…

Particularly favorable conditions granted to a bank that is the first institution to come under the umbrella of a government rescue plan in the event of a crisis. – In Germany, Commerzbank AG was…

Economic entities that take a security issued for the first time into their portfolio. Regulators and/or central banks usually publish statistics on the first placing of securities. – See issuance, candy, bought deal, client…

Credit derivative in which the investor undertakes to assume the default of the first receivable of a smaller portfolio of usually five reference assets. In return, the investor receives a corresponding premium from the…

In old documents the first of the month (TRISTES KALENDAE), on which the respective interest payments were due; in the case of loans to private households, the interest was always due monthly. Those who…

In older documents, a person appointed by the authorities to collect and administer taxes (revenue officer: a public official having control of public revenue). – Formerly also the public prosecutor in criminal proceedings. –…

An institute appointed by a corporation or public sector entity to advise in financial matters and to manage payment transactions. – A bank or banking syndicate appointed by the borrower to undertake certain duties…

Entries in the public budget that are – just barely – permissible under budgetary law, but which hardly convey a realistic picture of the actual budget situation. – In 2011, for example, the federal…

The payment obligations of households and companies through taxes and social contributions. The respective level is shown under the heading “General government financial position” in the section “Euro area statistics” of the ECB’s Monthly…

According to the two-part package, all EU countries had to establish an autonomous public body by October 2013, whose task is to strengthen all efforts to achieve sustainable public finances. Specifically, this body –…

Unless otherwise defined, a fiscal crisis is defined as a situation in which a country’s public finances have reached a debt limit that leads to serious disruptions within the economy as a whole. –…

Public budgets continuously show higher expenditures than revenues. The rising debt ratio leads to an increase in inflation expectations and greater recourse to the capital market, – to rising interest rates, – to growing…

– The dampening effect on economic activity when the government increasingly withdraws funds from the market sector of an economy. – Condition in an economy when the state has to reduce its demand for…

Unless explicitly defined otherwise, this refers to the regulation of legal relations among the various tax creditors (federal government, states, [cantons,] municipalities) of the same federation. – See financial architecture. – Cf. Deutsche Bundesbank…

The change in real GDP resulting from a shock originating in the government budget. – See deficit ratio, fiscal, budget deficit, budget ratios, budget reconciliation, European, default, parafiscal, shadow government, debt brake, debt ratio,…

Treaty on Stability, Coordination and Governance in the Economic and Monetary Union” adopted by the governments of the euro zone at the beginning of 2012. In addition to strict budget discipline and a debt…

In economic terms, the totality of all measures to shape the revenues, expenditures and assets of the public sector (the state). This includes first and foremost – the determination of taxes and subsidies, –…

In older documents, a legally competent official who was responsible for collecting the sovereign’s revenues. – See fiscal. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes…

the total amount of taxes and levies payable to the public budgets – federal, state and local governments – and to social security institutions as compulsory contributions, as a percentage of gross domestic product.…

In terms of EMU, the plan to introduce a common, centralized revenue and expenditure policy in addition to arrangements already in place, such as the fiscal pact. According to this plan, EMU members would…

Earlier levy in cash to redeem the fish gilt, namely the fish deliveries to be made, which was to be paid as a debt to the landlord. Gilt, also Gült and Gülte = in…

The assumption that if the price level is expected to rise by one percent, the nominal interest rate will also rise by one percent (more widely often according to the formula: real yield/return =…

Generally, the attempt to fraudulently obtain an Internet user’s data. – See financial agent, phishing. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent!…

The demand for this banknote – and more generally: for the bill with the highest currency amount – also indicates the public’s confidence in the financial system. For example, the number of 500-euro bills…

As soon as 500 U.S. citizens hold shares in a company listed abroad, this company is also subject to the laws and regulations of the U.S. for regulatory purposes. – See Sarbanes-Oxley Act. Attention:…

In older financial language, – the settlement money, – fixing of a salary, specifically the grading (grading: the classification to the appropriate salary bracket) of a civil servant. – See official money, bonus, deputation,…

A deposit held with a bank that is contractually not freely disposable within a certain period of time, i.e., no withdrawals are possible: Fixed-term deposit – Credit balances of legally defined customers at banks…

The Fixed Asset Turnover (FAT) ratio is a measure used in financial analysis to assess a company’s effectiveness in using its fixed assets, such as property, plant, and equipment, to generate sales. It is…

the capital stock; in detail, a number of statistical definitions and delimitations have to be taken into account. – Cf. capital assets fixed assets, balance sheet rule, golden, facility management, trade capital, investment, capital…

Money that the customer places at the bank’s disposal for a contractually agreed period of time at a specific interest rate; also known as time deposit. Contracts of between three and twelve months are…

In the case of banks, the charging of a customer – usually a private household – with a lump sum as remuneration for services rendered. The account management fee is usually included in this.…

The purchase of favorably priced bonds and short selling of related securities. – The exploitation of market imperfections (primarily the unequal distribution of information) in fixed-income securities (an investment strategy that aims to profit…

Investment strategy often pursued by hedge funds with the intention of exploiting price differentials in interest rate securities and derivatives through offsetting positions, but without taking on general market risk. – Fixed income strategies…

Term for a business policy that dispenses with variable interest rates for loans and agrees a fixed interest rate with the borrower over the entire term. Experience has shown that such agreements are more…

Securities with fixed interest rates. In contrast, dividend-bearing securities such as equities yield an alternating return. – See bonds, annuity bond. Attention: The financial encyclopedia is protected by copyright and may only be used…

Special type of investment fund. Usually, the term (contract period) of funds is unlimited. The investor acquires fund units which he can return at any time. In contrast, fixed maturity funds have a contractually…

Unless otherwise defined, the instruction to a broker not to – buy above the specified price or – sell below the price specified by the customer (the fixed price stated by a customer to…

When shares are issued, the issue price is fixed from the outset, in contrast to bookbuilding or tender (auction), which is based on a minimum bid. – See issue premium, bought deal, underwriting, issuing…

Before an issue, the arranger agrees a range of conditions with the company, on the basis of which the banks in the syndicate already hold talks with potential investors. The aim of this roadshow…

In banking practice (day-to-day operational business), this refers to an interest rate that remains unchanged for a precisely agreed period of time. However, this time does not have to be at all – which…

Tender procedure in which the interest rate is fixed in advance by the central bank. The participating counterparties bid the amount of money for which they wish to transact at the specified interest rate.…