English

Any type of commitment in the financial market without the possibility of calling or demanding repayment before the end of the contract. – See termination fee, fixed-term deposit, fixed-rate loan, prenumeration provision, repayment, early,…

In the ECB’s statistics, loans from banks with a fixed-interest period of five years or more. – In Germany, these account for more than half of all loans, especially for private housing construction. This,…

In off-exchange transactions between institutions, the usual form of settlement with the counterparty. A price is agreed in which all costs, including commissions, are already included. – In a transaction with a retail client,…

The partner in a swap transaction who pays a contractually agreed fixed rate. – The fixed rate receiver is often also referred to as the swap seller (fixed rate receiver). – See coupon swap,…

A central bank specifies the interest rate at which banks can bid (for an amount they choose) for allotments of central bank money. – See fixed-rate tender. Attention: The financial encyclopedia is protected by…

In older documents, a market participant whose expectations are for rising prices: a bull. – See bubble, speculative, boom, fixer, flor, bull market, bull market feeds bull market, hindsight, myopia, milkmaid bull market, rally,…

Regular fixing at the same time of day of certain – commodity prices (such as gold, silver, platinum) or – foreign exchange rates, such as above all EUR/USD by the ECB. – The established…

In the older literature, often referred to a tax that was generally payable by each citizen regardless of income, ultimately a bounty (tax of a uniform amount levied on each individual, or head). –…

In financial jargon, a warning signal: an indication of a problem that has arisen and requires immediate attention (a warning signal as an indication of a problem; hence something that demands immediate action). Attention:…

In financial market terms, the unexpected, sudden failure of an electronic trading system. – On May 6, 2010, there was a fifteen-minute computer-induced interruption of high-frequency trading on the New York Stock Exchange. Suddenly,…

A non-performing bond. – The fixed fee charged by a bank. – A contractually agreed fixed interest rate related to a specific period of time, especially in swap transactions. – A one-off payment made…

A uniform tax rate on – all types of capital gains (especially interest and dividends) and – gains from the sale of financial products. – Experience shows that (which is generally neglected in financial…

At an institution, the charging of ordinary services at a fixed price, generally irrespective of actual usage (a price calculation that charges a single fixed payment for a service, irrespective of usage). For the…

A uniform tax rate that is to apply to income and corporate taxes above a certain minimum level or above a certain basic allowance. This has far-reaching effects on the decisions of companies (investments)…

Contractual provision in a syndicated loan that allows the arranger to adjust its commission (agency fee) in the event of unexpected demand (clause in a contract that allows the arranger to increase or decrease…

Asset managers and hedge fund managers in particular are hastily divesting themselves of high interest-bearing, risky exposures and buying government bonds. This can lead to a dangerous rush to the exit. – The risk…

A short-term investment in which the exit has already been contractually agreed or tacitly envisaged by the investor in terms of date, amount or both. – See Replacement Capital, Payback. Attention: The financial encyclopedia…

An investor – usually a trader specializing in such transactions – who holds a stock for only a very short time, usually between 24 and 48 hours. He looks solely at the profit to…

A security whose current interest rate is variable. After each interest period, for example after 3, 6 or 12 months, the issuer pays the interest; at the same time, it announces the interest rate…

Financial instrument for which the interest rate is reset at regular intervals on the basis of a reference index and thus adjusted to changes in short- or medium-term market interest rates (any category of…

Financial instrument for which the interest rate is reset at regular intervals on the basis of a reference index and thus adjusted to changes in short- or medium-term market interest rates (any category of…

Guaranteed minimum interest rate, as agreed in particular for floaters. Even if interest rates fall below this level, the investor is still granted the minimum interest rate. – This downside protection comes at a…

Trading in securities or commodities takes place in an exchange hall (floor trading). Contracts are concluded between traders and brokers by shouting or hand signals. This is why it is sometimes referred to as…

In older literature often used for (banking) business flourishing, good sales, lively demand, good profit. Today sometimes still used as a time word: flourish (flourish: to develop in a profitable way). – See boom,…

Gold coins minted in Florence from 1252 with the city’s coat of arms, the lily, with reliable purity and until modern times one of the most sought-after curant coins because of its stable value;…

Unless otherwise defined, the inspection by the supervisory authority of an institution that is on the watch list, rescheduled shortly after a completed examination. – See Amber Light. Attention: The financial encyclopedia is protected…

Unless otherwise defined, in the financial industry this refers to sales to customers who – have basically lost their loyalty to the institution as a result of their contract expiring, and – should now…

In the Harmonized Index of Consumer Prices, foodstuffs have a relatively high weighting at almost twenty percent – of which 11.9 percent is processed food and 7.6 percent is unprocessed food such as meat,…

Levy in specie that was payable – when passing through a shallow place in a river (the ford bridge; ford: a shallow place in a river where it is possible to cross securely without…

to come forward); sometimes also called Gebotgeld; Gebot = here: public announcement. – Formerly the pro rata payment from the journeyman’s daily wages to that master who got him temporary employment with another master.…

A forecast of the economic development of a company, individual sectors, a state or a group of countries, such as the EMU, formed on the basis of – statistical surveys, – interviews and –…

It is undisputed today that every business cycle is something unique; more precisely: that – it contains triggering causes for the upswing as well as for the downswing, – which at least in the…

A central bank only has data from the past. However, this data must be used to draw conclusions about the current state of the economy and to make decisions that point far into the…

Pursuant to Section 289 (2) and Section 15 (1) of the German Commercial Code (HGB), corporations must also publish forward-looking statements on the development of business as part of the management report to be…

Generally, the establishment of an account in a non-domestic currency with a bank in the domestic currency area. – In particular, the maintenance of such an account by a resident person. The latter is…

A debt security (bond, debenture; obligation) that is not issued in the issuer’s domestic currency. – If the exchange rate of the domestic currency falls against the foreign currency (xeno currency), the burden of…

If a monetary debt expressed in foreign currency is to be paid domestically, the payment may be made in domestic currency if the settlement of the debt in a foreign currency was not expressly…

Unless otherwise defined, all transactions by banks located in the currency area that are not denominated in their own domestic currency. Observed by the central bank because both deposits and loans denominated in non-domestic…

In statistics, a technical term for firms in the home country that are controlled by a foreign company. For a more precise knowledge of globalization, it is important to record the relationships between these…

Monetary investments of domestic economic agents outside their own currency area and, unless explicitly defined otherwise, denominated in the currency of the foreign country. – See foreign assets, foreign debt. – See ECB Monthly…

According to IMF studies, the so-called troubling costs are decisive for a bank branch abroad. In particular, these are special expenses due to (by reason of) – unreliable infrastructure in the host country, –…

Cash deposits of German citizens at foreign banks. These are not protected by German deposit insurance systems, not even for small investors. In the event of nationalization or even state bankruptcy, the sums deposited…

The marketing of banking and financial products in a state by a bank that has its headquarters outside the state’s territory. – In Germany, such cross-border service transactions are generally subject to supervision by…

Debt security issued by a company or government outside its own currency area and regularly denominated in the currency valid there. – See bond, bulldog bond, dragon bond, shogun bonds. Attention: The financial encyclopedia…

If a German institution wishes to open a branch outside the European Economic Area, this requires notification to the supervisory authority, as prescribed in detail in Section 24a of the German Banking Act (KWG).…

The policy of some (developing) countries to hamper (to hamper) or totally ban (total ban) the free entry of foreign banks into the domestic financial market and thus the inflow of foreign investment. –…

Unless otherwise defined in the economic literature, the sum of all loans by domestic banks to counterparties abroad. In mid-2014, German banks’ foreign claims amounted to roughly EUR 148 billion, ranking at the top…

Loans to borrowers abroad. In Germany, there is a regulatory reporting obligation (obligation of reporting foreign credits) for corresponding amounts to counterparties domiciled outside the EEA, Switzerland, the U.S.A., Canada, Japan, Australia and New…

Unless expressly agreed otherwise in the contract, a monetary debt expressed in foreign currency may be paid in domestic money. This is stipulated for Germany in Section 244 of the German Civil Code (BGB).…

The elimination of exchange rate risk when exchanging currencies if the transaction is not concluded and executed simultaneously (hedging strategy used to reduce or eliminate risks in the foreign exchange market). – See Herstatt…

A central bank’s or foreign exchange authority’s holdings of foreign currency. – See tender obligation, export premium, exposure quota, foreign exchange allowance procedure, foreign exchange reserves, foreign exchange advance, compulsory foreign exchange economy, parallelism…

The pegging of a country’s public debt to another currency, currently practically to the USD or EUR. The purpose of the measure is to provide security to domestic and foreign subscribers in the event…

The pegging of a country’s public debt to another currency, currently practically to the USD or EUR. The purpose of the measure is to provide security to domestic and foreign subscribers in the event…

Securities denominated in foreign currency. The price of these securities fluctuates because and to the extent that the price of the foreign currency, measured against the domestic currency, depends on supply and demand on…

Securities denominated in foreign currency. The price of these securities fluctuates because and to the extent that the price of the foreign currency, measured against the domestic currency, depends on supply and demand on…

Exports of goods from a currency area to countries outside that area. The ECB monitors these exports on an ongoing basis, also with regard to the geographical breakdown. This is because foreign demand determines…

Cash held by the ECB in the hands of households and companies (usually not also referring to sovereigns or central banks) outside the euro area. In the same sense, one speaks of foreign dollar,…

Domestic money in the hands of non-residents or foreign money in the possession of residents. – Foreign exchange can exist not only in the form of cash – then called foreign notes and coins…

A regulation introduced in Germany as part of the foreign exchange control system, under which companies primarily engaged in foreign trade were allowed to freely dispose of a certain amount of foreign exchange granted…

A technical term used in the foreign exchange economy to denote the – amount of foreign exchange to be expended (scarce) – on a requested import of goods or – other activities involving a…

The regulation of payments into or out of another currency area by a government body, the foreign exchange authority. Free movement on the foreign exchange market is simultaneously prohibited. The aim of foreign exchange…

Unless explicitly defined otherwise, transactions conducted by banks on the foreign exchange market. Today, foreign exchange trading is characterized by round-the-clock transactions throughout the world; communication between market participants takes place via telecommunications systems…

Unless otherwise defined, a foreign exchange licensed bank is an institution that is authorized to deal in foreign means of payment under a prevailing compulsory foreign exchange economy. In Germany, under the Law of…

Unless otherwise defined, this now refers to foreign currency – usually invested in interest-bearing securities of the corresponding denomination – held by a central bank. Worldwide, just under twenty-eight percent of the foreign exchange…

In countries with a compulsory foreign exchange economy, the proportion of foreign payment instruments which an exporter does not have to surrender or does not have to surrender immediately. By managing the quota and…

In banking terms, the spot sale of a currency with simultaneous forward repurchase or vice versa. Such operations are mainly used to hedge foreign exchange transactions. – At the central bank, spot purchases and…

Invitation by the foreign exchange authority to submit bids for the acquisition of foreign currency. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent!…

Transactions in foreign means of payment as a whole, or especially in the currency pair EUR/USD, which are initiated only by appropriately programmed computers. These computers simultaneously and continuously search all trading platforms –…

Special charge for incoming goods when, instead of passing through a domestic port – e.g.: Hamburg, Bremen – via foreign ports – such as: Antwerp, Rotterdam. – Such a levy, also called differential duty,…

Companies and households in a country – as in the case of the countries joining the EU after 2000 – take out loans abroad. They expect the exchange rate of their own currency to…

The liabilities of a government or currency area – such as the euro area – to economic units outside its own area. The ECB published a guide to the statistical compilation of external debt…

The investment of money or assets in a project – in a geographical segment, as it is also often unhandily called – outside – one’s own narrower constitutionally defined jurisdiction, such as Germany, or…

Unless otherwise defined, this includes – in general, financial investments held by domestic economic agents in places outside their own country, including within a common currency area, and – in particular, such positions held…

Investment funds whose registered office is abroad but which make offers to domestic investors. – See German Investment Code. – Cf. BaFin Annual Report 2003, p. 215 (regulatory problems; statistics) and the respective BaFin…

Coming fiscal strains due to aging prompt investors to make investments in currency areas with growing populations – such as the U.S., India, Brazil – because they anticipate increasingly higher tax rates, weak growth,…

Programs of various states – such as the Economic Cooperation Act in the U.S. in 1947 – with the aim of partially or fully assuming the risk of companies investing abroad. The sense of…

In a bank, the department responsible for the management of foreign notes and coins. The relevant employees must not only have knowledge of all the world’s currencies, but also procure foreign money at the…

In a bank, the department responsible for the management of foreign notes and coins. The relevant employees must not only have knowledge of all the world’s currencies, but also procure foreign money at the…

A term commonly used in banking for foreign cash (banknotes and coins). – In Germany, anyone who trades in foreign notes and coins on a commercial basis requires a license pursuant to Section 32…

A term commonly used in banking for foreign cash (banknotes and coins). – In Germany, anyone who trades in foreign notes and coins on a commercial basis requires a license pursuant to Section 32…

The risk that, in a transaction, one party will perform in one currency but will not receive the consideration in the agreed foreign currency. – See foreign currency transactions, Herstatt risk, risk. Attention: The…

In older documents, the respective fee for various types of forest use, such as transit rights, logging, and hunting. Forests were part of the domains; free use was therefore not permitted to everyone. Attention:…

The language used in bank forms, preprinted forms and other documents, characterized by precisely defined legal terms (standard legal language used in forms of all kind in banking industry). The word is usually used…

Any sum of money at all; monetary capital, cash resources. – More rarely also: the value of an asset expressed in money, as it is assessed in business accounting. – The term is common…

Mathematical equations that seek to calculate risks in financial markets, especially in options trading. Since there will always be a residual risk due to external shocks, a residue of uncertainty remains, causing all calculations…

Fortis, the Belgian-Dutch bancassurance group with branches also in Germany – in Belgium, Fortis was the country’s largest private employer in the fall of 2008; one in two private households had an account there…

A levy that used to be paid by the citizens of a settlement protected by a military fortification (bastion), also called fortress money. – Tax introduced by imperial treaties in 1542 and 1576 to…

With regard to the financial market, hosted for the first time in October 2009 by the German Federal Financial Supervisory Authority and attended by around 200 experts, an event on consumer protection regulations in…

With regard to the financial market, hosted for the first time in October 2009 by the German Federal Financial Supervisory Authority and attended by around 200 experts, an event on consumer protection regulations in…

Body established in Germany in December 2000. Its meetings are attended by representatives of the Federal Ministry of Finance, the Bundesbank and the Federal Financial Supervisory Authority. The forum’s task is to coordinate the…

A body established in 1997 with the aim of improving investor protection, increasing transparency in the markets and ensuring fair treatment of investors. It also aimed to develop common supervisory standards for financial markets.…

Body of the European securities supervisory authorities with the aim of exchanging information. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor…

Contract entered into off-market (meaning: not dealt on a recognized exchange) by two parties who – according to individually negotiated conditions – agree on the purchase/sale of an – in terms of quantity and…

Contract entered into off-market (meaning: not dealt on a recognized exchange) by two parties who – according to individually negotiated conditions – agree on the purchase/sale of an – in terms of quantity and…

Term that entered the technical language with regard to central bank policy around 2013. What is meant is that a central bank makes its monetary policy intentions known in principle in advance with regard…

Transactions concluded at a later date, where the price underlying the purchase or sale, the strike price, is generally already agreed when the contract is concluded (marketplace that sets the price of a financial…

Transactions concluded at a later date, where the price underlying the purchase or sale, the strike price, is generally already agreed when the contract is concluded (marketplace that sets the price of a financial…

Price of an underlying asset at an agreed later date. – In calm market conditions, it can be assumed that – in commodity markets, the forward price is higher than the corresponding spot price,…

The price of an underlying asset at an agreed later date. – In calm market conditions, it can be assumed that – in commodity markets, the forward price is higher than the corresponding spot…

Purchase of a unit certificate of the investment fund of a capital management company. At the time of subscription, however, the investor does not yet know the asset value of the fund in which…