English

Coin made of inferior metal at the core, with a plating of gold or silver on the outside. This is also referred to as a lined coin in the older literature. Such a coinage…

A piece of money that was used for payment in earlier times, but has not been used for a long time. – It is one of the most difficult tasks of financial history to…

Metal money without image on obverse or reverse, with an inscription alone. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr.…

Hard money, metal money as opposed to paper money (bank bills; banknotes); formerly also called heavy money. – In older publications, usually coins of silver and/or gold. – See Spores Raffel. Attention: The financial…

The comparison of the income and expenditure of a mint or, in a broader sense, of a central bank’s paper money. – The profit generated by putting into circulation any kind of money is…

Services provided by the central bank to ensure the operational capability of all coins issued as legal tender. This includes the issuance of coins fresh from the mint, clearing transfer, counterfeit currency analysis, replacement…

In earlier times, a clerk who was entrusted with the conversion of the hard money given by domestic and foreign customers for payment. – It is reported from Amsterdam around 1720 that a coinage…

The difference between – the production cost of a coin (coinage; minting rate) and – its nominal value (the difference between the production cost of a coin and its nominal value), the strike rate.…

With regard to the financial market, an (economic) policy that largely gives banks and stock exchanges a free hand domestically, and which, on the part of the state, also contributes to their development. However,…

The initiation of business by means of an unsolicited telephone call or letter via fax and the Internet (such as e-mail; electronic mail or SMS; short message: an electronic memo sent over a cellular…

In the industry (unreeller; wildcat: characterized by unreliable, untrustworthy business methods) financial advisor; common term used in reference to customer-catching door-to-door solicitation for financial products. – See cold calling. Attention: The financial encyclopedia is…

If – in one fell swoop many sellers rush into a market, and – potential buyers withdraw at the same time, then the interlocking engine of supply and demand will collapse. In this case,…

Common platform for managing national and cross-border collateral submitted by counterparties to the Eurosystem, embedded in the TARGET2-Securities system. – Cf. 2007 Annual Report of the Deutsche Bundesbank, p 113 (status of work), 2012…

Most central banks, including the ECB, generally accept as collateral only assets that are traded on the market and can therefore be valued at a market price. – See eligibility, collateral, quantitative easing, short-term…

Most central banks, including the ECB, generally accept as collateral only assets that are traded on the market and can therefore be valued at a market price. – See eligibility, collateral, quantitative easing, short-term…

A register introduced at the ECB in two stages (by May 2005 and by January 2007) of assets that credit institutions may pledge to the central bank as collateral for short-term loans and assets…

A register introduced at the ECB in two stages (by May 2005 and by January 2007) of assets that credit institutions may pledge to the central bank as collateral for short-term loans and assets…

Generally, an asset suitable to reduce the risk attached to a loan (the characteristic of an asset assigned/pledged by a borrower to a lender as a form of credit enhancement designed to reduce the…

Generally, an asset suitable to reduce the risk attached to a loan (the characteristic of an asset assigned/pledged by a borrower to a lender as a form of credit enhancement designed to reduce the…

In general, the professionally determined (market) price of an asset as the basis for a loan to be granted. – Valuation prescribed by supervisory law, in particular in connection with cover in the case…

In banking practice: recognized collateral for loans granted (an asset or third-party commitment that is accepted by the collateral taker to secure an obligation of the collateral provider vis-à-vis the collateral taker); in this…

In banking practice: recognized collateral for loans granted (an asset or third-party commitment that is accepted by the collateral taker to secure an obligation of the collateral provider vis-à-vis the collateral taker); in this…

Generally, any protection against possible loss from a claim. – See bond, unsecured, loan liability, limited, guarantor, pledge, security, collateral, backing, real security, securitization. Attention: The financial encyclopedia is protected by copyright and may…

Unless otherwise defined, this refers to collateralized debt obligations in which the pool of receivables consists of bonds issued primarily by corporations. – See collateralized loan obligations, securitization. – Cf. ECB Monthly Bulletin, February…

asset-backed bonds): A special business of the securitization market. Banks – pool hundreds or even thousands of loans – as a basket of individual risks and – contribute them to a special purpose entity.…

Securitized debt instruments whose collateral pool is generated by credit default swaps (CDS). – See collateral pool procedure. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes…

Unless otherwise defined, this refers to collateralized debt obligations in which the pool of receivables from loans is related to leveraged corporate acquisitions. The risks in all tranches are generally higher here than in…

Unless otherwise defined, collateralized debt obligations based on derivatives as assets. – See Collateralized debt obligations, synthetic. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without…

A document with the same wording for legal and business transactions, such as: a sovereign mining permit, used to have to be issued in numerous copies (in the example: – for the archives [also…

In banking jargon, a male employee who works in a slipshod and non-professional manner such causing extra work for colleagues, customer irritation and a lot of anger to his line manager. The expression has…

In general, an object of any kind that is accumulated and hoarded by people, whereby the emotional devotion to the object in question (collecting passion) is basically at the center. Economically, such objects play…

At the ECB, generally the purchase of securities or other assets with the obligation to return them to the seller at a later date; it is applied as part of the ECB’s fine-tuning operations…

The collection of debts due, especially checks, drafts and dividend coupons, usually by a bank (the presentation for payment and the subsequent actual payment of a draft, check or other obligation). – Bad debts…

The commercial collection of third-party receivables or receivables assigned for collection (assignment of collection). – Mostly agencies operate as agents of other companies, and collect debts for a fee or percentage of the total…

Monetary policy instrument that can be used by the ECB for fine-tuning purposes. Under this instrument, counterparties are offered an attractive interst yield on fixed-term deposits held by their customers in accounts with the…

Practices applied by a bank and, more generally, by a company to collect accounts receivable (procedures followed by a firm in attempting to collect accounts receivable). Large institutions in particular employ working groups in…

The duration between the deposit at the bank of a check accepted for payment by a third party and the crediting of the amount by the institution to the depositor’s account (the time that…

The collection of outstanding debts from debtors, also called debt collection. – In older financial terminology, debt collectors were also called exactors, exequents and collectors, and the collectability of a debt – i.e. its…

In Germany, the right accorded by the German constitution to employees to negotiate working conditions and wage payments with employers without interference from third parties. – Time and again, the social partners accuse the…

In Germany, the right accorded by the German constitution to employees to negotiate working conditions and wage payments with employers without interference from third parties. – Time and again, the social partners accuse the…

Investors participate in a limited partnership as limited partners (partners liable to a fixed amount) or as trustors via a limited partner in trust (company at limited partners). The limited partnership buys and sells…

In the financial market, agreements against antitrust laws between several competing institutions with the aim of restricting competition for the benefit of all participants (rival institutions cooperate for their mutual benefit). – See supervision,…

In financial jargon, the term for an overpriced management buyout transaction. The term is derived from the word combination Colossally Overpriced MBO. Attention: The financial encyclopedia is protected by copyright and may only be…

A group of natural stones sometimes classified as gemstones in the same sense as diamonds, but often called semiprecious stones. In total, there are over a hundred different types in nature. Their value depends…

Possibility of accelerated legislation within the EU. The Council or the European Parliament prepares a proposal for a directive or a regulation. Subsequently, this proposal is discussed by certain committees (hence the name), which…

A term used in the International Financial Reporting Standards (IFRS) to describe the fact that, in certain cases, an asset can increase or decrease significantly in value over and above the value of a…

According to ISRS (4400) and the instructions of the regulatory authorities, the declaration by an issuer’s auditor, which is widely prescribed in detail, in connection with an issue that the information contained in the…

In financial terminology, unless the context expressly indicates otherwise, this refers to an entity involved in the production, processing, or merchandising of commodities. In the case of an institution, one speaks at most of…

Older term for any company that at least – accepts deposits from customers (deposit business) and – handles cashless payment transactions (giro business activities), but today usually also – provides many other services on…

The basis of assessment for trade tax. – In detail, commercial capital in the tax sense includes all assets used permanently in a business, regardless of who owns them (property, rent, lease). Fixed capital…

The assets of a company determined according to certain accounting rules. – In Marxist terminology (as distinct from industrial capital), the totality of merchants buying and selling goods, and usually assessed negatively (“usurious capital”).…

Securities backed by a pool of mortgage loans granted to finance commercial real estate. – In times of crisis, such as the global financial crisis that followed the subprime crisis, rental income from commercial…

Generally, all money market instruments in the form of discounted debt securities with maturities of one day to less than one year. The yield is calculated on the basis of the price gain; commercial…

Developed and undeveloped land used by companies as production facilities, storage areas or bureaux. The ECB’s statistics also include residential real estate used for commercial purposes. – Experience has clearly shown that in a…

The transformation of a noncommodity into a commodity; to assign a monetary value to something that traditionally would not be considered in monetary terms; the commercialization. – The application of economic considerations to cultural…

On commodity exchanges, firms that hedge their spot transactions on a large scale (to a great extent) and regularly (regularly) in futures trading, such as grain mills, exporters, or warehouse companies with contractually fixed…

On commodity exchanges, market participants who commercially and continuously hedge their spot position in the futures market, such as oil mills, coffee roasters, confectioners, tanneries, yogurt makers (yogurt makers: they must purchase fruit worldwide…

Founded in 1870, this second-largest major German bank – after Deutsche Bank – came to grief in the wake of the financial crisis that followed the subprime crisis. It had to be bailed out…

A portfolio or pool contains securities to which third parties have rights (the risk that clear titles become comingled [= mixed] with assets owned legally by a third party). – This became apparent in…

A portfolio or pool contains securities to which third parties have rights (the risk that clear titles become comingled [= mixed] with assets owned legally by a third party). – This became apparent in…

The remuneration charged by a financial service provider to the customer (remuneration for services rendered by a financial institution on behalf of the customer) and normally debited from the current account; in business transactions…

Generally, a payment for a person who arranges transactions or renders services in the course of his trade (the fee allotted to an agent for services rendered); see Section 354 HGB. – In the…

Another name for brokerage firm because the firm’s profits are derived primarily from charging commissions on brokerage transactions. – See stockbroker, stock exchange participant, lead broker. – Cf. 2004 Annual Report of BaFin, p.…

In the case of a bank, all services that are not directed toward the granting of loans, such as trading in securities of all kinds or the brokering of insurance contracts. – See transactions,…

The contractual commitment of an investor to a commitment, i.e., to pay a certain amount into an investment or fund at a fixed time (obligation to invest). – Commitment to the job; more precisely,…

Payment charged to a customer for the commitment to lend money by its bank (a payment by a prospective borrower to a bank in return for the bank’s promise to lend money at a…

Frequent complaint of the practice that in the financial sector in all areas official committees with employees who are extremely fond of worldwide traveling are active, and that these do not bring anything: “nothing…

Technical body of the European authorities involved in banking supervision established in January 2004, based in London and attached to the Committee on Banking Supervision. An important part of CEBS’s tasks was to advise…

Body established in 2004 with representatives from the national supervisory authorities of the EU; the secretariat was based in London. The aim of the committee was to determine what needed to be regulated and…

European body for the exchange of experience and the development of common principles in insurance and occupational pensions supervision with headquarters (general secretariat) in Frankfurt am Main. There are several working groups. One of…

An EU body established in June 2001 and based in Paris with the purpose of advising the European Commission on securities regulatory issues and promoting the transposition of Community law into national law. Members…

A body of representatives of the insurance industry supervisory authorities from the European Union established in November 2003 with the aim of harmonizing supervisory requirements. The secretariat is located in Frankfurt am Main. –…

International body set up by central banks to define requirements for payment systems. – See payment procedures, innovative, retail payments, electronic, migration, RTGS system, SEPA Council, Single European Payment Area, Target. – Cf. 2001…

Committee of stock exchange members of the most important stock exchange for the ten financial market to date in New York, which decides on the admission and exclusion of members. – See Big Board,…

Interdepartmental committee operating within the Federal Financial Supervisory Authority with the aim of developing common guidelines for representing important German positions in international bodies. – Cf. Annual Report 2012 of BaFin, p. 237 f.…

A body established in 1999 with the main objective of identifying possible weaknesses in the international financial system. – Cf. ECB Monthly Bulletin, January 2001, p. 84; Deutsche Bundesbank Annual Report 2003, p. 167.…

The investment in – stocks of commodity-producing companies (especially in the oil, natural gas, uranium, copper, aluminum, lumber, and fruit sectors), – a commodity fund that is spread as widely as possible (spread as…

A capital management company whose assets are invested wholly or mainly in commodities or commodity futures contracts. The fund’s management has the expectation of reselling these items at a profit in a timely manner…

Standardized, legally binding contracts (futures contracts) for the purchase or sale of commodities listed on an exchange. Settlement is not necessarily in rem, but often by cash settlement. – See financial futures, option. Attention:…

In the U.S., a regulatory agency established in 1974 to oversee product exchanges and, in particular, to monitor compliance with the regulations set out in the Commodity Exchange Act as well as the implementing…

In the U.S., individuals or companies that accept money or collateral from customers to trade futures on commodity futures markets. They often pool customer deposits into a commodity futures investment fund. The larger the…

In the U.S., individuals or companies that accept money or collateral from customers to trade futures on commodity futures markets. They often pool customer deposits into a commodity futures investment fund. The larger the…

The amount of money to be paid on the market for internationally traded basic materials (raw materials). In their changes, commodity prices affect the prices of intermediate inputs. However, because these account for around…

Short-term loans for the purchase of inventories or receivables from exchange-traded commodities. The loan is contractually repaid from the sales return of the financed goods. – See agribulk, financialization, object financing, project financing, commodity…

A set of rules for insurance companies comparable to the provisions of Basel II, drawn up by the International Association of Insurance Supervisors. It is intended that the corresponding regulations will become generally binding…

In former times, a fee for the use of the common land, i.e. the common property of a settlement community, also called Gemeinäckergeld and Gemeinmarkgeld. In larger communities, the money was administered by the…

Common Framework for Reporting of Solvency Ratio): A measure introduced by the Committee of European Banking Supervisors to standardize and at the same time simplify the reporting system for all banks within the euro…

An ordinary share that entitles the holder to all rights under the German Stock Corporation Act. Some companies also issue preferred shares. A preferred share (also known as a preference share, US: preferred stock)…

An ordinary share that entitles the holder to all rights under the German Stock Corporation Act. Some companies also issue preferred shares. A preferred share (also known as a preference share, US: preferred stock)…

If not defined otherwise, the expenditure for the exchange of information in a company or in an industry. The ECB calculates the share of these costs because they allow comparative conclusions to be drawn…

Securities issued by information technology companies, especially shares in such companies. – See energy stocks, mining stocks, defense stocks. Attention: The financial encyclopedia is protected by copyright and may only be used for private…

Credit institution characterized by – small size, – limited geographic reach, and – broad but flat scope: all monetary transactions are handled, but only with local households and small businesses. In Germany, these are…

In the retail sector, a central customer card issued by several partners in complementary consumer areas, usually combining various functions, such as bonus and credit functions. By expanding their range of uses, for example…

This law from 1977 obliges banks in the USA to offer local banking services to a satisfactory extent. Another provision stipulates that institutions must lend a portion of their loans to socially weaker persons…

In Austria, since 2007, the former commercial register. It is kept by the regional courts and makes the legal circumstances of companies in Austria public. The entry includes the company name and registered office,…

Companies that can be divided into individual groups on the basis of precisely determinable, unambiguous and permanent characteristics, such as institutions according to their size or main line of business. Attention: The financial encyclopedia…

Companies that can be divided into individual groups on the basis of precisely determinable, unambiguous and permanent characteristics, such as institutions according to their size or main line of business. Attention: The financial encyclopedia…

In the financial market as defined in Section 1, Paragraph, 1 of the German Banking Act (KWG), “companies that are not financial holding companies, mixed financial holding companies or institutions and that have at…

In the financial market as defined in Section 1, Paragraph, 1 of the German Banking Act (KWG), “companies that are not financial holding companies, mixed financial holding companies or institutions and that have at…

An institution wholly owned by a company in the manufacturing sector. Usually serves the sole purpose of providing all financing for the company. – See auto bank, corporate bank. – Cf. 2010 Annual Report…