English

Formerly, in the course of compulsory enforcement (CH: Betreibung; compulsory enforcement) of a claim, a payment to be made in advance to the authority by a creditor in the application for arrest when the…

In earlier times, a tax in cash was levied on persons who wished to settle within a (city) municipality or territory as immigrants, also called Anmanngeld, Annehmungsgeld, Ansässengeld, Bürgergeld, Einstandsgeld, Einzugsgeld, Nachbargeld, Rezeptionsgeld and…

Generally, a person’s presumptuous confidence in his own abilities. The overconfident person – in reckless self-confidence undertakes more than he is capable of, – disregards obstacles and – disdains expert advice from others. –…

Generally, a person’s presumptuous confidence in his own abilities. The overconfident person – in reckless self-confidence undertakes more than he is capable of, – disregards obstacles and – disdains expert advice from others. –…

Bringing the holdings of a particular security in a portfolio to a desired number of units by buying or selling. – See Still Business, Odd Lot. Attention: The financial encyclopedia is protected by copyright…

In the case of government bonds in particular, the postponement of repayment, compensated by an increase in the interest rate on the paper. – A partial payment. Attention: The financial encyclopedia is protected by…

If not otherwise defined in the financial field, a term for the extent to which different sets of data in a financial statement or statement of assets and liabilities fit together (the interrelation and…

Interest rate on a bond that rises automatically with increasing maturity to compensate for the loss in value due to inflation. – See bond, index-linked, bond, inflation-linked, capital protection. Attention: The financial encyclopedia is…

Interest rate on a bond that rises automatically with increasing maturity to compensate for the loss in value due to inflation. – See bond, index-linked, bond, inflation-linked, capital protection. Attention: The financial encyclopedia is…

Planned clearing currency (initially planned as a basket currency similar to the ECU) of Asian countries as a precursor to a later single currency in Asia, at least within the Asian Free Trade Area.…

Trade agreement between China and ten Asian countries that came into force at the beginning of 2010. The agreement provides for the elimination of tariffs and the favoring of reciprocal investments. – The agreement…

ask): The price at which an asset or financial instrument is offered for sale. The asked price is called the bid price. Attention: The financial encyclopedia is protected by copyright and may only be…

Stamp, seal of authenticity (hallmark) on bars of precious metals in general and gold bars in particular (a stamped impression on the surface of a precious metals bar that indicates the producer, serial number,…

Since November 2007, the Securities Services Conduct and Organization Ordinance has required an institution to assess whether the securities offered to a customer also contribute to the customer’s benefit. – See appropriateness, straightjacking, overregulation.…

Market participants and observers – especially analysts and financial journalists – who do not share a general, predominant expectation about the stock market as a whole or about individual stocks. – See Animal Spirits,…

Possibility of investing money and setting up a corresponding (mixed) portfolio, for example in shares, funds, participation models or certificates. – Different tranches issued by an investment fund. Each of these securities is issued…

The correlation of the change in the enterprise value of two companies. In the context of risk measurement, a corresponding ratio is related to companies whose credit risk largely depends on the same risk…

The acquisition of a company by purchasing its individual assets. Purchase agreements are concluded for each individual asset (e.g. for the sale of real estate, machinery, plant and equipment, rights, receivables and also intangibles…

The allocation (monitored on an ongoing basis) of a portfolio or the assets of an investment management company according to – different types of investments (such as equity investments, financial instruments, real estate, precious…

Unless otherwise defined, asset management is the acquisition and sale of financial instruments for an investment community consisting of natural persons with the aim of enabling investors to participate in the performance of the…

The management of a company’s assets from an accounting and tax perspective. – In a bank, a division that – for private customers, institutional investors as well as for public bodies – selects, procures…

A condition that occurs when the receivable being hedged – does not match a receivable determining the credit event, – does not match the receivable determining a payment amount (in the case of cash…

The ratio of operating income (= the quantity of goods and services produced in a period valued in monetary terms; for an institution, roughly the sum of net interest income, net fee and commission…

In the context of the Financial Soundness Indicators, the ratio of nonperforming loans to total gross loans and the sectoral distribution of loans to total loans. – In connection with European banking supervision, the…

Assessment of bank balance sheets carried out by the ECB as European banking supervisor on a uniform basis. This involves examining the condition of bank assets. In particular, it clarifies the extent to which…

The higher capital ratio required under Basel III is not only mathematically possible by increasing the numerator (an institution’s capital). Rather, a reduction in the numerator (a decrease in assets) is also possible. Such…

A takeover in which a large part of the purchase price – in some cases even all of it – is raised by selling assets of the acquired company. – See Asset Deal, Ausschlachten,…

Generally, the attempt by the acquirer of a company to break down the company in parts and sell those to third parties, hoping that the sum of the parts will at the end of…

A swap transaction in which an investor exchanges – his fixed investment for a floating one (fixed rate payer swap) or – his floating investment for a fixed one (fixed rate receiver swap). –…

In general, all tradeable commercial papers which are backed by assets of the issuer. – In particular, debt instruments backed by payments from a portfolio in which a large number of individual receivables are…

In general, all tradeable commercial papers which are backed by assets of the issuer. – In particular, debt instruments backed by payments from a portfolio in which a large number of individual receivables are…

Asset-backed, unlisted securities with a maturity of 360 days or less. They are usually issued by conduits to finance a portfolio of long-term receivables, e.g. mortgage loans. ABCPs are thus discounted securitization papers. –…

Specially created securities used for refinancing purposes that are backed by a pool of similar assets (e.g. mortgage loans granted, leasing receivables, credit card receivables or also by a life insurance portfolio; collectively usually…

Asset-backed securities that themselves invest in parts of other asset-backed bonds. Such nested securitized securities have been repeatedly rebuked by regulators for the sheer distance between the investor and the underlying risks. Because of…

A committee of representatives of the relevant departments at the level of an individual bank or at the top level of the bank (Group management) that deals with the management of interest rate risk,…

Determination of monetary policy solely or predominantly on the price level of assets, especially real estate in addition to securities. – But even the determination of “appropriate” asset prices poses hardly solvable judgment problems.…

The prices of real estate and financial assets rise more strongly than the consumer price index, which is ultimately always seen as the result of an excessive increase in the money supply (monetary parectasis).…

All items generally shown on the left-hand side of a company’s balance sheet; they provide information on the use of funds invested in the company. Their counterparts are liabilities, which are shown on the…

Unless otherwise defined, in banking practice (as a bank-specific term) this refers to the loans of an institution as a whole. Securitization enables a bank to convert these loans at least in part into…

Unless otherwise defined, as a business accounting term, all assets that can be converted directly, in the short term, into cash by sale. These include, in particular, checks, (discountable) bills of exchange, floating-rate bonds…

Items on the asset side of a bank that are exposed to credit, market and/or operational risks (an institution’s assets or off-balance sheet exposures, weighted according to risk). When calculating these, the respective default…

Permanent facilities in an economy that provide basic services without being used primarily for commercial purposes. These include, above all, transport routes (railroads, roads, canals, canalized rivers), water facilities (reservoirs, dikes), kindergartens, schools, churches,…

Permanent facilities in an economy that provide basic services without being used primarily for commercial purposes. These include, above all, transport routes (railroads, roads, canals, canalized rivers), water facilities (reservoirs, dikes), kindergartens, schools, churches,…

Paper money put into circulation in France in 1789, the year of the Revolution; it was supposed to be covered by the sale of the church’s expropriated properties or to certify claims to them.…

Unless otherwise defined, in a swap transaction – and here again particularly in an interest rate swap – this refers to the transfer of a contractual position to a new counterparty. The previous counterparty…

Banks in Germany are permitted to sell individual loans or entire loan portfolios to third parties; the Federal Constitutional Court confirmed this in July 2007. – However, the supervisory authority advises institutions to inform…

Body set up by the EU Commission in November 2003 with the task of advising the Commission on issues relating to the internal energy market. – Cf. 2008 Annual Report of BaFin, p. 47…

Body set up by the EU Commission in November 2003 with the task of advising the Commission on issues relating to the internal energy market. – Cf. 2008 Annual Report of BaFin, p. 47…

The estimation of future prices of an asset, a stock market index or the prices on a sub-market (market segment) from the course of the stars, the celestial bodies. Several service providers specialized in…

Unless otherwise defined in relation to the financial market, a situation in which participants in a transaction have to pay different tax rates. – See tax dumping. Attention: The financial encyclopedia is protected by…

Unless otherwise defined in relation to the financial market, a situation in which participants in a transaction have to pay different tax rates. – See tax dumping. Attention: The financial encyclopedia is protected by…

An option (call option or put option) is “at the money” if the strike price is exactly equal to the price of the underlying asset on the spot market (an option is at the…

In the case of currency options, the underlying is in the usually a specific currency amount. In this case, the at-the-money strike price often does not refer to the price of the underlying on…

In older financial language, in relation to a debt, the extension of time, the deferral of payment. – See moratorium, default. Attention: The financial encyclopedia is protected by copyright and may only be used…

In ancient Israel, a bounty to be paid on the day of atonement. The collection of this fee served primarily to determine the number of Israel’s elect (statistical reason: Exodus 30:11-16); secondarily, it was…

In ancient Israel, a bounty to be paid on the day of atonement. The collection of this fee served primarily to determine the number of Israel’s elect (statistical reason: Exodus 30:11-16); secondarily, it was…

Generally, a payment to persons who attend meetings (sessions) of a body – such as a people’s representative body, supervisory board, chamber – as a member of that body. – See attendance fee, expertise…

Expense allowance for participation in the deliberations of a body such as a party, supervisory board, parliamentary committee; also referred to as attendance money, meeting money, per diem, daily allowance, conference money, diurnum, attendance…

Expense allowance for participation in the deliberations of a body such as a party, supervisory board, parliamentary committee; also referred to as attendance money, meeting money, per diem, daily allowance, conference money, diurnum, attendance…

In the financial market, a period during which demanders – investors, borrowers, speculators – hold back on orders for the time being. Their expectations are directed toward more favorable market conditions, such as a…

Unless otherwise explained, this refers to the payment of money or the granting of financial benefits, such as tax exemption, to individuals, such as top managers of the financial industry, or to companies, in…

Unless otherwise defined in relation to the financial market as a whole – and often especially in relation to hedge funds – the percentage of providers that exit the market each year. Attention: The…

Unless otherwise defined in relation to the financial market as a whole – and often especially in relation to hedge funds – the percentage of providers that exit the market each year. Attention: The…

In relation to the financial market, a transaction on the market in the form of an auction (the process in which multiple parties bid to determine who will buy an item from a seller).…

A trader places offers to buy or sell without seeing current bids and offers, as opposed to an order book format where standing bid and offer prices are continuously visible to all market participants.…

Term from DIN EN ISO 8402; defined there as “a systematic and independent examination to determine whether the quality-related activities and the associated results correspond to the planned arrangements and these arrangements are effectively…

The supervisory authority has found no errors or deficiencies in the course of an inspection of a securities services company pursuant to Section 36 of the German Securities Trading Act (WpHG). What constitutes errors…

Term used in supervisory law; it must be possible to determine whether business transactions – are functioning properly now and – can be assessed as having been carried out properly afterwards. For a bank,…

Person responsible for the accounting activities of a company (the corporate officer responsible for the firm’s accounting activities). – See Audit. Attention: The financial encyclopedia is protected by copyright and may only be used…

In jargon – an uneducated or unsophisticated investor; often also – in the secondary meaning that he/she trusts in the bank clerk in good faith and therefore also lets himself/herself be talked into worthless…

In jargon – an uneducated or unsophisticated investor; often also – in the secondary meaning that he/she trusts in the bank clerk in good faith and therefore also lets himself/herself be talked into worthless…

Employers in Germany are required by the Social Security Code to employ severely handicapped persons. If they do not comply with this obligation, or if they do so inadequately, they must make a payment…

In financial language – the Australian dollar, AUD or – AUD-denominated government bonds of the Australian state. – Occasionally during the Greek crisis in the spring of 2010, investment advisors recommended buying such securities.…

A term used frequently, especially in the wake of the Greek crisis, to mean that a government introduces measures to reduce public debt and regain competitiveness and implements them in the face of resistance.…

A term used frequently, especially in the wake of the Greek crisis, to mean that a government introduces measures to reduce public debt and regain competitiveness and implements them in the face of resistance.…

bancassurance regulator in Australia, see more at , on the pages very many guiding documents to download. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without…

The elevation of a monetary symbol to a means of payment with compulsory acceptance by means of a legal act by public authority. In the case of coins, this is manifested in the minting…

A requirement under supervisory law and in the The primary basis of all anti-money laundering regulations, requiring financial and other intermediaries engaged in financial transactions to thoroughly check their customers’ identities. – In a…

In economic terms, a public-sector agency or organization with administrative and regulatory powers in a specified field, such as the central bank or the supervisory authority. – See Entity. Attention: The financial encyclopedia is…

When using a cash card, the automatic checking of a transaction for its permissibility. In the course of this, the following are checked in particular: – the card validity period, – the correctness of…

Special form of asset-backed securities, particularly widespread in the USA. Here, banks’ receivables from car buyers are securitized and sold to a special-purpose entity – often also mixed with receivables from other loans of…

Banks owned by automobile manufacturers with the main purpose (practical effect) of financing customers in the purchase or leasing of a vehicle from their own company. In some cases, the business also extends to…

Within a regular contractual relationship between bank and customer, the compensation of possible short-term gaps in the settlement of the purchase price for newly acquired securities by the fact that – securities offered by…

Industry that has been the focus of economic policy since around 1950 due to its exceptionally high input intensity (industrial interrelation). In connection with the financial crisis that followed the subprime crisis in 2007,…

With regard to the European Monetary Union, the view, often put forward but unproven because it cannot be demonstrated, that a common currency would set in motion automatic forces for economic convergence among the…

In an institute – and in an entity in general – jargon for an employee who basically does not consult with colleagues and works toward himself/herself. – See airbag, jack-of-all-trades, behavioral branding, chief copying…

Central French financial market supervisory authority established at the beginning of 2004, comparable to the German Federal Financial Supervisory Authority. Attention: The financial encyclopedia is protected by copyright and may only be used for…

In an institution, the ability to provide business and information to customers within a given framework. – See churn rate, accessibility, ease of use, relationship management, call center, container banking, remote access, automated teller…

In an institution, the ability to provide business and information to customers within a given framework. – See churn rate, accessibility, ease of use, relationship management, call center, container banking, remote access, automated teller…

Unless otherwise defined, receivables due from a bank – especially checks, bills of exchange and dividend coupons – that have not yet been deposited for collection (receivables due and already deposited that have up…

Unless otherwise defined, the total amount of capital supplied to the market within a country, a currency area or in relation to the world as a whole. – Suppliers are – households, – institutional…

Generally, a loan granted by someone – usually a bank, but sometimes other companies, such as a corporate parent – by assuming a surety or providing a guarantee. This means that the bank does…

In older financial terminology, the arbitrary extortion of money by dishonest officials (the practice of extorting money or other property, particularly by a public official). In Germany, however, such a practice is completely unknown,…

In relation to the financial market, a service provider who – on behalf of individuals and companies defrauded by financial vultures – tracks down the wrongdoer (tortfeasor) and – in business and private reputation,…

“Average Days Delinquent” (ADD) is a financial metric that companies use to measure the average number of days that a customer’s account balance has been overdue. This metric is often used in accounts receivable…

Average Revenue Per User (ARPU), also sometimes referred to as Average Revenue Per Unit, is a measure used primarily by companies that offer subscription-based services to gauge the revenue generated per user or unit.…

On commodity exchanges, the designation for the quality of the commodity when other, standard market quality designations have not been officially introduced. Attention: The financial encyclopedia is protected by copyright and may only be…

At the ECB, provision that allows banks to meet their reserve requirements on the basis of their average reserve holdings over the maintenance period. – The average reserve requirement helps stabilize money market interest…

In older financial language, payment as compensation to someone who renounces something (money given to a resignee: a person who has resigned or is about to resign). – A rollover sum when trading in…

As a rule, a person’s realistic attitude toward money is gained only through experience. – Someone becomes generally acquainted with the importance and weight of the money by the fact that he must offer…