English

At the ECB, a risk control measure applied to reverse transactions, whereby the counterparty is required to provide collateral with a value equal to the credit extended plus the value of the underlying assets.…

At the ECB, a risk control measure applied to reverse transactions, whereby the counterparty is required to provide collateral with a value equal to the credit extended plus the value of the underlying assets.…

Initial public offering in which the operating business – i.e. the actual production of goods or the supply of services – of an unlisted company is transferred to an inoperative but listed shell company…

The initial offer to purchase securities and financial instruments in general. – For German distributors of shares via the Internet, an offer is subject to the prospectus requirement under the German Prospectus Act if…

Expenses (of a bank) incurred prior to the conclusion of a contract, in particular in the course of an elaborate creditworthiness check (credit assessment) of the potential customer. In some cases, the borrower must…

In the case of a credit agreement with the bank, a reimbursement for expenses for the use of the institution’s services (a fee charged by the lessor bank used to cover the costs associated…

Action program launched in spring 2003 to strengthen the financial sector in Germany; participants are the leading associations of the banking industry, Deutsche Börse, Deutsche Bundesbank and the Federal Ministry of Finance. In particular,…

A process initiated by the International Monetary Fund and the World Bank to reduce the external debt of particularly poor countries. Initially introduced almost unconditionally, from 2006 countries in which corruption is widespread, such…

A company that establishes a special purpose entity. – If this is a special purpose entity as a special purpose vehicle with the intention of placing asset-backed securities with investors as securitization instruments, then…

According to Section 824 of the German Civil Code, the – untruthful assertion of facts or – dissemination of news that is likely to – call into question confidence in the creditworthiness of a…

Particularly in older documents, the term used for a customer of the bank for a variety of reasons not mentioned by his/her name and regularly abbreviated by a letter or sign. – See Identity…

A new technical invention or a new product, but also the discovery of new ways of organization and sales. At this stage, instead of innovation, one often speaks of an innovation (invention, blueprint =…

Special fund of a capital management company whose sole or main purpose is the production-related implementation of innovations, then also referred to as a technology fund. – Special asset of a capital management company…

The investment in money or assets made in a venture by a company, fund, or crowdfunding. – The advance payment for an obligation to make a payment, usually arising from a contract; in older…

The cash deposit into one’s own account at a bank. The term is most common in Austria. – See deposit. Attention: The financial encyclopedia is protected by copyright and may only be used for…

In older documents, government promissory bills made out to a specific person, which had to be officially transferred in the event of a change of ownership. (inscription = here: the information on the bond…

teutonic management knows everything much better) and similar measures, many stock corporations therefore try to build up or consolidate a favorable emotional inclination of shareholders to the company. – See one-night-stand, outside-shareholder, panic selling,…

Generally, an insider is someone who has knowledge that is not generally known and which, if it became publicly known, could have a significant incentive to buy or sell for investors. – A primary…

If insiders give orders to buy or sell via their stockbroker, – the broker will react to this and buy or sell the corresponding security himself and – as a rule, also advise some…

As a result of the Investor Protection Improvement Act of 2004, issuers in Germany are required to list all persons with insider knowledge, as stipulated in Section 15b of the German Securities Trading Act…

Since 2002, members of the executive and supervisory boards of listed companies in Germany have been required to report without delay any dealings in securities of their own company with a value of 5,000…

As defined in Section 12 of the German Securities Trading Act (WpHG), these are financial instruments that – are admitted to trading on a German stock exchange or are included in the regulated market…

In terms of investment, confidential, secretly disseminated information on particularly favorable double-digit profit opportunities on the financial market that have allegedly not yet been discovered by experts or even the general public. – Almost…

Obtaining a pecuniary advantage – usually by buying or selling listed securities – by unlawfully exploiting an information advantage (an illegal offense involving the purchase or sale of shares by someone who possesses inside…

trustee), liquidator, receiver in insolvency, trustee of creditors: A natural person who is suitable for the particular case, in particular one who is competent in business and independent of the creditors and the debtor,…

Payments that are incurred when a bank – generally: a company – can no longer meet its due payment obligations. – Direct insolvency costs are expenses for the insolvency proceedings themselves, such as court…

The inability of an economic entity – company, individual – to meet its payment obligations when due (situation of a company or individual whose creditworthiness position is so weak that he cannot meet his…

Rising insolvency figures are demonstrably “following events” of a severe economic downturn. At the same time, however, the declining creditworthiness of many borrowers is pushing up banks’ capital adequacy requirements. In this context, the…

In Germany, payment to employees of a company that has become insolvent if they are still entitled to remuneration for the preceding three months of employment. Insolvency payments (until the end of 1998: substitute…

With respect to institutions, an intergovernmental agreement long sought by the Basel Committee on Banking Supervision to ensure orderly resolution and appropriate loss sharing in the event of insolvency. So far – and probably…

The opening of insolvency proceedings against the assets of an institution inevitably results in the withdrawal of its license to provide any kind of financial services – see BaFin’s Annual Report 2008, p. 139…

A company declares its solvency, and it is in fact cash-strapped. However, this state was brought about intentionally, for example because a legal dispute with an unfavorable outcome was pending against the company, or…

The return to the company of subareas previously outsourced from (bank) operations (practice in which operational functions which have been contracted out are performed in-house again). In recent years, this has been observed above…

Fee that used to be paid to an inspector (Geschauer, Geschauherr, Schaumeister; quality control inspector) appointed and sworn in by the authorities – sometimes also by the guild – for his services, especially in…

Payment of a sum of money, in a contractually fixed amount and on specific dates (instalment schedule), either – in advance (praenumerando, such as a building society contract) or – in arrears (postnumerando, such…

A bond in which the principal payments remain the same, but the interest charge continues to decline. This reduces the annual charges to the issuer. – See bond, annuity bond. Attention: The financial encyclopedia…

A loan in which the amount of repayments steadily decreases because the interest portion becomes smaller and smaller while the repayments remain the same. – See annuity loan, balloon loan, bullet payment, grace years,…

Purchase in which the purchased item – goods, securities – is paid for in several installments. In this case, ownership is legally transferred to the purchaser only upon payment of the final installment (form…

Purchase in which the purchased item – goods, securities – is paid for in several installments. In this case, ownership is legally transferred to the purchaser only upon payment of the final installment (form…

A company in the financial market that is not precisely defined; as a rule, the number of employees is taken as a basis and banks with up to nine employees are classified as small…

Generally, a body, an organization (this defined as a – social entity set up for specific purposes – with a predetermined goal, – with formally defined membership and – a constitution (in the form…

Generally, companies that receive money on an ongoing basis in the course of their business activities and reinvest substantial portions of it (entities that pool large sums of money and invest those sums in…

Entities with – high and mostly steady investment requirements (investment requirements, demand for investments), mainly corporate funds, capital management companies, insurance companies, pension funds and larger foundations; these traditionally also feed the private equity…

Used as a plural term instead of institution. – In financial markets, usually referring to the two pillars of government – including the administration – and the central bank. Their policies must create long-term…

Banking supervisory requirements based on Section 25a of the German Banking Act (KWG) for the remuneration systems of institutions that came into force in October 2010. The purpose of the regulation is to prevent…

Instructions on how a central bank should formulate its monetary policy, issued by – clueless laymen, mostly self-styled financial journalists and silly assembly-line writers in relevant Internet forums, and – by far worse –…

Expenses incurred by an ensemble for the purchase and maintenance of musical instruments. – The cost of transporting and insuring musical instruments when an orchestra performs off-site and goes on tour. – Collectively agreed…

The insurance industry as a whole, or the market for insurance services. – An individual insurance company. – See insurance. Attention: The financial encyclopedia is protected by copyright and may only be used for…

Securities through which reinsurers split up their assumed risk positions and sell them in different The securities in the pool are issued to investors willing to take on risk (retrocessionaires) by way of securitization.…

In older documents, the entry of a debt in the land register (cadastre; property register, cadastre, registry of deeds). – See bond, asset-backed, book debt. Attention: The financial encyclopedia is protected by copyright and…

The term used to describe non-financial assets owned by a company. These include the company’s own goodwill, patents, industrial property rights, concessions – in the case of institutions also the permission of the supervisory…

The term used to describe non-financial assets owned by a company. These include the company’s own goodwill, patents, industrial property rights, concessions – in the case of institutions also the permission of the supervisory…

Value accruing to a company from intangibles that cannot be recognized directly as a cash inflow. Such an increase in value can arise from all subtypes of intangibles. Examples include the improvement of the…

Unless otherwise defined, intangibles are all assets that are a determining factor in the company’s earnings and are essential for its long-term market opportunities, but are not tangible assets (working capital) or financial assets.…

On old price slips and documents, a specific type of Dutch government bond, issued after 1814 and bearing interest at 2.5 percent. – See inscriptions, lombards, metalliques. Attention: The financial encyclopedia is protected by…

Annual meeting of supervisory authorities on an international scale. – Cf. 2004 Annual Report of BaFin, p. 10. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes…

Government loans granted in Germany after World War II under the Refugee Assistance Act (FlüHG) to eligible persons, primarily displaced persons of German nationality. – Loans granted by banks to immigrants to Germany, primarily…

Special analysis procedure used by the German Federal Financial Supervisory Authority for market monitoring. Data sets that are similar in terms of trading behavior are combined into so-called clusters. This makes it easier to…

If not defined otherwise, this refers to the working group in an institution – usually directly attached to the Board of Management in organizational terms – which looks after very angry customers (dead angry…

A body of six independent experts set up jointly by the European Parliament, the Council of Ministers of the EU and the EU Commission in 2005 with the task of – critically monitoring the…

The forward purchase and simultaneous forward sale of a commodity, but on different markets (commodity exchanges). – See arbitrage, carry trades, financialization, futures markets, commodity futures contract. Attention: The financial encyclopedia is protected by…

Unless otherwise defined, intra-group loans within banking groups. Under Basel II, these are to be exempted from capital adequacy requirements. Because the savings banks and Volksbanks are not legally organized as a group –…

Payment transactions between banks and also between banks and payment service providers (institutions offering payment services) in the various payment systems. The corresponding movements are recorded and published by the ECB. – See Accessibility,…

The trading of central bank money within banks. The purpose of this market is – to balance out unforeseen daily fluctuations (oscillations: fluctuations above and below a mean value) in the cash requirements of…

Interchange payments between service providers in the market for credit cards. The fee is paid to credit card companies that recruit merchants to accept credit cards (acquirers) by the issuers of credit cards (issuers).…

A contractual arrangement between the various creditors of a company, wherein they primarily regulate their respective positions in the event of a credit event, in addition to an exchange of information. – See default…

In older financial language often said for interest. 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.…

The – amount of interest calculated as a percentage for a loan or – the amount debited from the account by the bank for credit drawn down. – See lending interest, deposit interest, negative…

The – amount of interest calculated as a percentage or – sum of credited interest charged by an institution to a customer. As a rule, the amount of interest charged by banks on customers’…

At the ECB, the interest on minimum reserves is equal to the average of the marginal rate of allotment of the Eurosystem’s main refinancing operations over the relevant maintenance period, weighted according to the…

Interest paid by a bank to its depositors. – See lending interest, interest payable, interest margin. – See the annex entitled “Euro area statistics” under the heading “Financial markets” in the ECB’s Monthly Bulletin.…

Interest charged by banks to their borrowers. These must be higher than the deposit interest (credit interest) because, in principle, a bank’s profit lies in the difference between the lending interest and the deposit…

In the case of a bank, essentially the loans granted and money market transactions on the one hand and the loans taken out by it on the other. – See operating profit, transactions, commission-dependent,…

In terms of government finances, intergenerational fairness means that the government does not impose burdens on future generations that should reasonably be borne by the current generation of taxpayers. In individual cases, it is…

In Germany, as part of labor market policy, payment to persons who were previously unemployed or employed in a job-creating scheme but who now switch to self-employment (Ich-AG; ego-company: the odd expression “Ich-AG” comes…

In Germany, as part of labor market policy, payment to persons who were previously unemployed or employed in a job-creating scheme but who now switch to self-employment (Ich-AG; ego-company: the odd expression “Ich-AG” comes…

Loan granted by a bank to finance a construction project. After completion and official acceptance (acceptance of construction work, final acceptance; in Austria and Switzerland, acceptance of buildings and facilities is called collaudation) of…

Committee of European banking and insurance supervisors established in 2006 with the aim of developing guidelines for the supervision of financial conglomerates. In January 2009, the committee was merged into the Joint Committee on…

Unless otherwise defined, a financial institution that – trades exclusively or predominantly in credit derivatives and – arranges securitizations, – in order to generate a trading or commission profit from them. In this context,…

In the language of the supervisory authorities, a natural or legal person who, under unlimited and unconditional liability, provides to a single financial services provider, for each of which it acts, – securities services,…

In the language of the supervisory authorities, a natural or legal person who, under unlimited and unconditional liability, provides to a single financial services provider, for each of which it acts, – securities services,…

In the context of a financial system, usually refers to the fact that institutions assume the mediation function between the supply of and demand for credit, i.e. they reliably mediate between savers and investors…

In the older literature, the interruption (D: the interruption) of trading on the exchange for various reasons on the spot or in the exchange operation itself. – See Flash Crash, Current Risk. Attention: The…

ESCB body with the objective of promoting auditing procedures within the ESCB (best practices). – Cf. 2001 Annual Report of the Deutsche Bundesbank, p. 143. Attention: The financial encyclopedia is protected by copyright and…

In the course of Basel II, regulatory requirement to determine capital requirements across all types of risk. – See Chief Risk Officer, risk and solvency assessment, internal, management, internal. Attention: The financial encyclopedia is…

Process by which institutions must ensure internally that there is always sufficient capital to cover all material risks. The specific regulatory requirements (performance targets) are summarized in the Minimum Requirements for Risk Management. –…

Loan for domestic agrarian economy (agrarian economy). – See crop-support credit, inventory credit, land-cultivation banks, landscape, melioration credit, papers, green. Attention: The financial encyclopedia is protected by copyright and may only be used for…

Corporations provide loans to their affiliated companies; however, these are not considered banks in Germany under Section 2 (1) of the German Banking Act even if they engage in other banking activities within the…

In a company, the raising of capital from its own resources. – See immunization, zero distribution, self-financing. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without…

With regard to EMU, the requirement that mechanisms (a system of parts that operate and act together like those of a machine) must exist in the individual participating countries to cushion imbalances or ensure…

The rules applicable within an institution for the respective areas of business operations and their organizational structure. — See Asset/Liability Management Committee, Actuary, Investment Committee, Chief Risk Officer, Controlling, Function, Overall Bank Management, Risk…

The rules applicable within an institution for the respective areas of business operations and their organizational structure. — See Asset/Liability Management Committee, Actuary, Investment Committee, Chief Risk Officer, Controlling, Function, Overall Bank Management, Risk…

According to Basel II, this is a way of calculating the minimum capital requirements for a bank’s credit risk in addition to the standardized approach specified in the regulatory framework. In this approach, the…

In regulatory language, a financial service provider that – trades professionally, in a planned manner – trades regularly – for its own account – by executing client orders – outside a regulated market or…

In financial markets, this refers to the institute-internal execution of client orders. This is done either via certain trading systems in which the bank in question participates, such as Xetra Best Execution on the…

Accounting standards to which all publicly traded companies in the EU will be subject as of 2005. Also on the rise in the USA since 2001 in the wake of the bankruptcy of the…

Accounting institution organized under private law with the task of creating globally accepted international accounting standards (IAS/IFRS). Through the IAS Regulation of the European Commission – EC Regulation No. 1606/2002 – today the body…

Entity based at the Bank for International Settlements in Basel with the aim of establishing cross-border rules for deposit insurance. – Cf. BaFin Annual Report 2009, p. 35 (assignment of IADI). Attention: The financial…

Established in 1994, the IAIS now comprises 160 insurance supervisors from around the world and some 70 organizations with observer status. Its primary objective is the global exchange of information and experience and the…

Worldwide standardized account number format with a maximum of 34 digits. – The first four digits contain the country code (e.g., CH for Switzerland) and the check digit (39), followed by the four-digit bank…