English

A derogatory term for a company that grants loans at very high interest rates to borrowers who can offer no or only insufficient collateral. However, because the loss rate for this group of customers,…

A popular form of raising money by German territorial states, especially in the 19th century, broadly similar to a lot bond. – See draw insurance, Prämien-Schatzanweisung, Sparprämienanleihe. Attention: The financial encyclopedia is protected by…

Municipalities cover their financial requirements by accepting loans from their citizens. The interest rate is usually set at a level that is more favorable for the municipality than a bank loan. – In Germany,…

Unless otherwise defined, this refers to the granting of a loan to a hedge fund which, in return, buys tranches placed by the bank directly or via a special purpose vehicle and converted into…

The amount of a loan in relation to the loan-to-value of the collateral property. – See loan-to-value ratio, lending value, Regulation on the Determination of the Mortgage Lending Value (Beleihungswertermittlungsverordnung, Beleihungswertermittlungsverordnung, Deckungsprüfung), debt ceiling.…

In general, the ratio of the claims on a borrower to the value of the collateral provided by the borrower (the percentage of credit lent against the value of the collateral that secures the…

Particularly in the case of real estate, the ratio between the amount of a loan and the market value of the asset to be acquired (the ratio of the amount of a potential mortgage…

Sum that an institution disburses to a customer, but where the loan amount is not provided by the bank itself, but by a third party, usually a government agency. – See pass-through loan. Attention:…

The common type of credit arrangement in which the lender, at the time credit is first extended, limits the amount of credit to a specific amount, determines the length of time for repayment and…

A loan granted against special security provided by the debtor – such as: Mortgage, pledge of securities or goods – See blank loan, curant debt, child pledge, chattel loan, real loan, collateral, backing, advance.…

A loan that has been credited to the customer after all standard banking formalities have been completed (a loan for which funds have been disbursed, and all required documentation has been executed, received and…

In banks, lending between a parent and subsidiary institution. In the course of Basel II, these money movements were much discussed because such loans were to be assigned a risk weight of zero percent.…

Loan originally granted to a debtor on a short-term basis, but which has not been repaid at maturity and has thus now become long-term for the creditor. – See loan, short-term. Attention: The financial…

A loan in which agreed repayments are behind schedule (a loan in which payments have fallen behind schedule). – See default, claim, dubious, loan defaults, credit event, nonperforming loans. Attention: The financial encyclopedia is…

Another term for a nonperforming loan. – See loan, non-performing. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk,…

An earmarked loan that is covered only by the value of the asset – usually real estate – that is acquired with the loan. If the borrower (creditor; debtor) is no longer able to…

Usually a mortgage loan for which the borrower did not meet all of the traditional lending criteria, and for instance was already highly indebted, or for which no independent check was made to ensure…

Loans granted by banks to public sector entities. Closely monitored and assessed by the ECB as part of its monetary policy aimed at price stability. – Loans granted by a public employer to employees…

A loan granted by a bank on a short-term basis and – unless otherwise specified – in this case for up to two years. From a bank’s point of view, the longer the term…

small-sized loan: Lending by a bank primarily to small and medium-sized enterprises; sometimes loans to households and home loans are also included. – From the point of view of banks, such loans to small…

Loan extended to a debtor by several creditors (a loan advanced jointly by two or more financial institutions). – See flex clause, syndicated loan, loss-sharing arrangement. Attention: The financial encyclopedia is protected by copyright…

Loans granted by banks, especially to households, which are closely monitored and analyzed by the ECB. Indeed, loans to the private sector appear to have advance characteristics with regard to the rate of price…

In German supervisory law, the generic term for loans to members of the Board of Managing Directors, shareholders, supervisory bodies, authorized signatories (Prokuristen) and their family members, and to related parties of a bank.…

On the exchange, a trader present in person who executes trades exclusively for his own account (a person with exchange trading privileges who executes his own trades by being personally present in the pit…

In the older financial language, a bill of exchange payable at the place – “in the resort,” as it was also called – of the purchasing bank. Attention: The financial encyclopedia is protected by…

In the language of commodity exchanges, a market in which commodities are available for immediate delivery and are traded. – See spot market, substitutability, commodity certificate. Attention: The financial encyclopedia is protected by copyright…

In older financial terminology, securities in general and, in particular, shares that are known only in a limited area and are traded primarily there. In Germany, still used today for some shares that are…

Generally, an obligation not to sell an asset before a contractually specified time. The purpose of such a special arrangement is to prevent inopportune selling pressure. – See selling restrictions. Attention: The financial encyclopedia…

Agreements under private law with (initial) purchasers of shares or other marketable papers on the date up to which they may not be sold on the stock exchange, especially in the case of large…

Agreements under private law with (initial) purchasers of shares or other marketable papers on the date up to which they may not be sold on the stock exchange, especially in the case of large…

Another term for selling restrictions (an amount of time decreed beforehand, following an initial public offering, during which employees and close associates of the company who are given shares are not allowed to sell…

When interest rates rise and prices for securities fall as a result, banks and also companies tend to hold on to their holdings of securities first in order to avoid having to report price…

Disparaging term used by some German politicians and union officials for hedge funds. – As business journalists have revealed, almost all critics of hedge funds using this term have virtually no idea of how…

Fee for the use of a waterway for drifting, namely rafting: the transportation of floating logs or lumber. – Payment to the owner (in older documents often also Possessor; proprietor) of a plot of…

Fee for the use of a waterway for drifting, namely rafting: the transportation of floating logs or lumber. – Payment to the owner (in older documents often also Possessor; proprietor) of a plot of…

In older stock market parlance, shares of the Austrian South Railway. This railroad company, founded in 1858, was, after the nationalization of most railroads in the second half of the 19th century, the most…

In general, the granting of a loan in exchange for a pledge as collateral. – In particular, the lending of securities. If a lien is to arise, it must be deposited with the lender…

Informal discussion group of globally active banks with the purpose of negotiating jointly and with a single voice on debt rescheduling programs with sovereigns that do not meet their payment obligations. The club has…

In March and May 1921 in London meeting of representatives of the victorious powers of World War I (19141918) over Germany, which adopted a hard payment plan and a comprehensive an obligation to deliver…

Quality designation for standard bars (19.0 to 13.4 kg) of gold as defined for use between central banks. The bars are to have a minimum fineness of 99.5 percent. Each piece must be stamped…

venue where standardized financial futures have been traded since September 1982. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard…

An agreement drawn up under the auspices of the Bank of England for the event of the collapse of large companies in England. The core of the agreement is that – a bank does…

Early bill of exchange with a maturity of usually eight days, denominated in GBP and referenced to an address in London. – Accordingly, the older stock exchange notes also contain designations such as “Milan…

In connection with money laundering, banks do not decide on their own how to deal with suspicious cases, but report suspicions to the authorities. This way, a bank does not run the risk of…

Generally, the position of an orderer, acquirer, a buying position. – The holder of an asset has the expectation that the price will rise (the holder of an asset expects a profit from rising…

Position resulting from the purchase of a call, giving the buyer (vendee: a buyer of an option, an asset or good) the right to purchase the underlying asset at the specified price. – See…

Taking a long position on the futures market to hedge a short position on the cash market. – See conversion, option, short covering, short position, success rates. Attention: The financial encyclopedia is protected by…

A long position in exchange-traded assets – commodities, financial instruments – that has not yet been closed out by an opposite position. – See spread, butterfly spread, future, close-out, long hedge, option, short position.…

longs): Unless otherwise defined, securities with a remaining term to maturity of ten years or more. – See Capital market, Short-term securities. Attention: The financial encyclopedia is protected by copyright and may only be…

The view, discussed in economics, that central bank policies – have a very long impact lag – of up to two years, – therefore often end up achieving the opposite of what they want…

The view that a change in the money supply ultimately merely means a change in the yardstick which money offers as a unit of account, i.e. as a yardstick for the valuation of goods.…

In general, the planned exploitation of market imperfections in the pricing of assets, especially stocks. – In hedge funds, a strategy in which – in the opinion of the managers – undervalued (traded below…

In each case, close attention must be paid to the context of the text because this term, which is particularly important for the financial world, is not understood in a uniform manner. – At…

The introduction of market-based valuation approaches by Solvency II causes some difficulties for insurance companies. This is particularly the case when insurers have provided long-term interest rate guarantees to their customers, while market interest…

In stock exchange terms, a share that has been traded for a long time. On the New York Stock Exchange, for example, the Con Edison share – then still known as “The New York…

In financial parlance – the Canadian one-dollar coin (a gold-colored bronze-plated coin, introduced in 1987; it bears images of a common loon, a well-known Canadian bird, on the reverse, and of Queen Elizabeth II…

Common term, especially in older financial language, for customer accounts held on a company’s books. – In a correspondent banking relationship, from the perspective of bank X, an account held by bank Y with…

In older documents, often used for a loss, especially in connection with transactions on the stock exchange. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without…

The ability of an economic entity in general, and a bank in particular, to absorb losses without jeopardizing its own existence. The concept of the ability to absorb losses in the banking industry is…

Term used primarily in connection with certain tradable financial instruments. Banks bundle a large number of issued loans into a portfolio. This is then broken down into individual tranches; usually into three, not necessarily…

Term used primarily in connection with certain tradable financial instruments. Banks bundle a large number of issued loans into a portfolio. This is then broken down into individual tranches; usually into three, not necessarily…

Operational risk event that results in a loss to the bank. According to the list in Basel II, which is more exemplary and therefore not comprehensive of all events, these are in particular –…

Operational risk event that results in a loss to the bank. According to the list in Basel II, which is more exemplary and therefore not comprehensive of all events, these are in particular –…

Measure of a bank’s expected average loss per exposure in the event of default by a specific counterparty. This arises when the proceeds from – the payments made by a borrower to date and…

In rating, the – previously planned, i.e. expected or – the actual default rates of the loans; if not expressed otherwise, calculated as the amount of the loss as a percentage of the exposures…

In rating, the – previously planned, i.e. expected or – the actual default rates of the loans; if not expressed otherwise, calculated as the amount of the loss as a percentage of the exposures…

According to IAS 39, a credit balance in the income statement or a surplus of liabilities over assets in the balance sheet only had to be recognized when the loss actually occurred, i.e., when…

According to IAS 39, a credit balance in the income statement or a surplus of liabilities over assets in the balance sheet only had to be recognized when the loss actually occurred, i.e., when…

In general, any type of transaction aimed at avoiding a possible trading loss altogether or at keeping it within manageable limits. – In the case of options, the taking of a short position in…

In general, any type of transaction aimed at avoiding a possible trading loss altogether or at keeping it within manageable limits. – In the case of options, the taking of a short position in…

In the event of a loss of twenty-five percent or more of liable capital, a bank in Germany must notify the supervisory authority without delay; see Sec. 24, Para. 1, № 5 KWG. Attention:…

In the event of a loss of twenty-five percent or more of liable capital, a bank in Germany must notify the supervisory authority without delay; see Sec. 24, Para. 1, № 5 KWG. Attention:…

The risk of incurring a loss in a transaction, and especially in an exposure to the financial market. – See investment courage, defaveur, profit potential, risk taker, loss, expected. Attention: The financial encyclopedia is…

The risk of incurring a loss in a transaction, and especially in an exposure to the financial market. – See investment courage, defaveur, profit potential, risk taker, loss, expected. Attention: The financial encyclopedia is…

In the financial market, the contingency (eventuality: the actual possibility) of losing all or part of the capital invested in a commitment. – See hedging, call option, uncovered, non-investment grade, risk, loss absorbency, loss…

In the financial market, the contingency (eventuality: the actual possibility) of losing all or part of the capital invested in a commitment. – See hedging, call option, uncovered, non-investment grade, risk, loss absorbency, loss…

The hardly rationally explainable but empirically well-documented fact that both private investors and companies are inclined to let losses run their course instead of drawing a painful line under the commitment at an early…

The hardly rationally explainable but empirically well-documented fact that both private investors and companies are inclined to let losses run their course instead of drawing a painful line under the commitment at an early…

The ability of an economic entity in general, and a bank in particular, to absorb losses without jeopardizing its own existence. The concept of the ability to absorb losses in the banking industry is…

Rule of thumb calculated in the USA in connection with the subprime crisis, according to which banks reduce new loans to be granted by ten USD for a loss of one USD. In the…

Rule of thumb calculated in the USA in connection with the subprime crisis, according to which banks reduce new loans to be granted by ten USD for a loss of one USD. In the…

As a regulatory term, the totality of all intra-group relationships in a banking group that may give rise to a liability exceeding the equity capital. – Fund set up within a banking group, such…

Any loss not precisely specified in its extent, a damaging decrease, in extreme cases even a total loss, such as of the purchasing power of money or of the confidence of customers in a…

Any loss not precisely specified in its extent, a damaging decrease, in extreme cases even a total loss, such as of the purchasing power of money or of the confidence of customers in a…

In general, the product of the probability of default and the amount of loss in the event of default. Banks are required by regulatory law to absorb corresponding losses with equity capital. – See…

In general, the product of the probability of default and the amount of loss in the event of default. Banks are required by regulatory law to absorb corresponding losses with equity capital. – See…

The unit of quantity of a contract (one unit of trading: the minimum contract size). – Old precious metal weight: 1 lot = 18 grän = 1/16 mark. – In coins, formerly the unit…

In older financial language also meaning: an amount outstanding for payment, debt item, debit item, debit. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express…

The fact that a bank collects money from many small investors and transforms it into a few large-volume loans. – A company finances a larger investment through – the contributions of several individual investors,…

A special type of gambling game. The main difference to gambling in the sense of § 284 StGB is that the lottery requires the existence of a game plan. This is regularly specified by…

In stock market jargon, asset-backed securities-collateralized debt obligations (ABS-CDO), i.e. asset-backed securities that themselves contain asset-backed securities. As a rule, such securities are very difficult to understand, especially in terms of their risk content.…