English

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 – fraud from within, – fraud from outside, – employment practices and security, – customers, products and business working practices, – interruption… read more »

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 stage. – See memory, money grave, money swallower, head-in-the-sand behavior, million grave, financial psychology, myopia, torpedo capital, loss, incurred, waste watcher…. read more »

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 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…. read more »

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 financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr…. read more »

Frequently used term, but with different conceptual content (denotation: the totality of things to which a term is applicable; the objects meant by “assets”). – All goods owned by – private households, and then in the older literature also called households, – enterprises, and then in relation to these also often called corporate capital and… read more »

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 at the time of the counterparty default. Discrepancies between planned and incurred loss indicate poor calibration. – See default, default loss,… read more »

Generally, a prior contractual agreement on the proportions in which losses arising from the default are to be shared among the various parties. – In particular, the agreement on how, in the event of the insolvency of a major debtor, the banks affected with non-performing loans are to cooperate and according to which formula the… read more »

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, old people’s homes, hospices in the sense of last residences or hospitals. – See infrastructure capital, physical capital, social capital, assets,… read more »

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 pooled. At the end of 2007, before the subprime crisis turned into a financial crisis, investors (banks, funds, insurance companies and,… read more »

the nominal form of a verb made into a noun] (performance, yield): Often said in older financial literature for yield, to be worthwhile, to bring in something, to earn interest, to yield profit, to yield a return. The word was, however, already contemporarily criticized as an unattractive expression. Attention: The financial encyclopedia is protected by… read more »