English

In older documents, the bond of a first-class company or bank, which is accepted for payment like cash (at least in commercial dealings; at least in commercial transactions). – See banknote, money supply, money…

Persons who, with the help of a notary who is always on duty, sell – in general – an over-indebted company and – in particular – a fraudulent capital management company for one euro.…

In financial jargon, a presentation of a company, usually summarized on just one sheet of paper, that banks send to their customers; ultimately with the intention that they buy shares in the company in…

Under the German Prospectus Act, anyone wishing to list securities on the regulated market segment of the German stock exchange must submit a disclosure of all the company’s important circumstances in a form and…

Under the German Prospectus Act, anyone wishing to list securities on the regulated market segment of the German stock exchange must submit a disclosure of all the company’s important circumstances in a form and…

EU company whose securities – are already admitted to trading on a regulated market on the stock exchange, or – are offered to the public for subscription for trading on a regulated market. The…

EU company whose securities – are already admitted to trading on a regulated market on the stock exchange, or – are offered to the public for subscription for trading on a regulated market. The…

The business operated by a cooperative (a cooperative: an autonomous association of persons united on their own accord to meet their mutual economic goals through jointly owned and democratically controlled enterprise). – See union…

The business operated by a cooperative (a cooperative: an autonomous association of persons united on their own accord to meet their mutual economic goals through jointly owned and democratically controlled enterprise). – See union…

Enterprises owned by public authorities that provide goods on a non-profit basis, such as the provision of water and the disposal of wastewater. – According to the legal definition in Art. 106, para. 1…

Enterprises owned by public authorities that provide goods on a non-profit basis, such as the provision of water and the disposal of wastewater. – According to the legal definition in Art. 106, para. 1…

Principle in accounting and regulatory law according to which the same facts must be treated in the same way by all companies in order to be able to compare and assess transactions at different…

Principle in accounting and regulatory law according to which the same facts must be treated in the same way by all companies in order to be able to compare and assess transactions at different…

The checking comparison of the amount that has to be paid for the purchase of a good. Such a comparison is made much easier/difficult if it is made in terms of the same/different money.…

The total amount of cash and non-cash benefits paid by employers to employees divided by the total number of employees. In addition to gross wages and salaries, it includes bonuses, overtime payments and employers’…

In the financial sector, the payment of employees. After the financial crisis that followed the subprime crisis, there was a call for compensation to be based on the risk taken and the sustained success…

In the financial sector, the payment of employees. After the financial crisis that followed the subprime crisis, there was a call for compensation to be based on the risk taken and the sustained success…

An ECB operation, usually limited to one week, aimed at providing liquidity between two main refinancing operations. – Cf. ECB Annual Report 2001, p. 75. Attention: The financial encyclopedia is protected by copyright and…

The settlement of mutual claims in money by way of offsetting; the compensation of a debt by a corresponding counterclaim (counter claim, cross claim). – If this occurs only between banks, it is generally…

Since August 1998, special regulations have been in force in Germany for the protection of customer funds, laid down in the Deposit Protection and Investor Compensation Act, EAEG (law to secure deposits and compensate…

The seasonal differences in the credit needs of individual companies and industries lead to – temporary surpluses of deposits at the banks, while – at the same time, other sectors of the economy have…

In older documents, also the amount exposed to a debtor for subsistence after assignment of his property to the creditor. Attention: The financial encyclopedia is protected by copyright and may only be used for…

A three-professor research institution established in 2004 by the Deutsche Bundesbank’s Money and Currency Foundation at the University of Frankfurt. – See Absorptive Capacity, Money Grave, Money Burning, International Research Forum on Monetary Policy.…

In general, the ability to successfully apply one’s knowledge in daily professional practice (requirement for an individual to properly perform a specific job). – In a bank – as in any other company –…

The effort of several to achieve a goal; another word for competition. – In the economic sense, the or just the competitor: the competitor, the rival in the business field (a company in the…

The fact that – most market participants rely on stability in the financial markets and – exclude possible risks from (even worldwide) turbulences in their expectations – with the danger of not being sufficiently…

The way in which a bank deals with complaints from its customers. The supervisory authorities require institutions to have clear procedural arrangements in place to ensure that complaints are followed up without delay. –…

Department in a bank that receives complaints from customers and forwards them for resolution. – Department of the supervisory authorities that receives and, if necessary, follows up complaints regarding financial service providers. For the…

The national supervisory authorities generally require complaints against financial service providers to be completed on a form (questionnaire) in order to simplify the course of business. However, a complaint procedure is not an out-of-court…

Occasional – a (special) examination by the supervisory authority – or deficiencies in all business areas of institutions identified by other means – especially also by information from customers, competitors and whistleblowers. – See…

In older documents, the complementary day in February of a leap year. – See Actual/Actual, Eurozinsmethode, Wertstellung, Zinstagezählung. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes…

Gains or losses are recognized only when the investment is completed; in contrast to the percentage-of-completion method, under which profit contributions are recognized per accounting period. – See accrual principle. Attention: The financial encyclopedia…

Particularly in the case of mergers and acquisitions, it can happen that a company assumes any financial obligations – for example, from guarantee cases – which are not reflected at all or not adequately…

In supervisory terminology, a globally operating banking group. – See banking supervision, European, Europa-AG, financial conglomerates, Haftungsverbund, holding company, lead supervisor, conglomerate. – See BaFin Annual Report 2002, p. 62, BaFin Annual Report 2003,…

An option that includes the possibility, within the term of the contract, of changing two important features, namely – the strike price and/or – the quantity of the underlying asset on which the contract…

Acting in compliance with the applicable regulations): The fact of being in compliance with the applicable regulations governing one’s firm activities. – Bank-internal monitoring body with the aim of ensuring compliance with laws, regulations,…

A stock index formed from various stocks quoted on a daily basis, such as the Shanghai Stock Exchange Composite (index) or the Nasdaq Composite (index); the word “index” is often omitted. – In a…

In older German stock market literature, the term for a share in a company that produces coal and steel in a single group of companies – also called a mixed plant – such as…

The fact that price changes – as in the case of petroleum products, for example – are more strongly reflected in those baskets of goods in which the price-changing good has a relatively high…

At the start of European banking supervision, an inventory of the 124 banks – 24 of them German – in the euro area; this corresponds to about 85 percent of the total assets of…

Compulsory long-term care insurance introduced in Germany on January 1, 1995, to cover the costs of frailness in later days. Long-term care insurance is now a major parafiscal fund, the budgetary development of which…

In Germany, the statutory requirement that health insurers with good risks must pay for companies with bad risks. – See Deutsche Bundesbank Monthly Report, July 2004, p. 20 and p. 24 f. (list of…

Market in which securities are traded via electronic systems. – See stock exchange, electronic, foreign exchange trading, computerized, Eurex, flash crash, witching hour, money market segments, trading system alternative, floor. Attention: The financial encyclopedia…

Special type of book money that is disposed of solely by means of computer equipment. – See payment methods, innovative, money, electronic, Giropay, network money, PayDirect, Payez Mobile, play money. Attention: The financial encyclopedia…

Payment of invoices by means of program-controlled electronic computer systems via the Internet, especially in the C2B sector. Despite predictions to the contrary, still of little significance – except in the area of Internet…

The specialization of an economic area – for example, the city of Frankfurt am Main – in a particular industry – in this case, financial services providers: Financial services providers. Concentration is usually measured…

In the older literature, the rising quotation of a company caused by buying-in activities of a company that wants to control or take over that company. – See Mergers and Acquisitions, Greenmail, Raider, Kickback,…

Measure of the market share of the largest banks in a country. The main benchmarks are – the balance sheet total, – the total of lending, – the total of deposits, and sometimes also…

Risks to a bank arising from uneven Distribution of credit exposures to – individual borrowers (counterparty concentration: a major portion of the loans are extended to just a few borrowers); this also includes loans…

A corporate headquarters distributes losses incurred to all group companies, including those which, as independent companies, do not directly belong to the allocation group (payroll subunit). The resulting unfavorable balance sheet structure of the…

In financial language, the agreement of several partners acting in the market with respect to a planned objective (agreement in a simultaneous action). – See chord, concert underwriter. Attention: The financial encyclopedia is protected…

Market participant who subscribes to a security – even in large quantities: in packages – merely in the expectation that price gains can be expected after the issue. The acquisition of the security as…

In the case of banks, sales branches of partners located in the banking hall or in the vestibules (foyers; foyers), which conduct their business there with their own staff and for their own account.…

In the language of the financial world – joking term for investments in buildings; in a broader sense, investments in undeveloped land are sometimes included as well as – the money invested in a…

Unless otherwise defined, this refers to the conditions imposed by the International Monetary Fund on countries that make use of its assistance. These primarily include conditions relating to – government spending, – the money…

Unless otherwise defined, all conditions faced by a company wishing to borrow money for investment purposes. – See financing, financing costs, interest rate differential. – Cf. ECB Monthly Bulletin, August 2012, pp. 67 ff.…

Special form of index-linked bond. At the time of issue, it offers a higher interest rate than comparable securities. However, the redemption amount is linked to a contractually agreed index. As soon as this…

In earlier times, a sum paid to enlisted soldiers (recruits) to defray the expenses of traveling from their home to the place of enlistment; sometimes called marching money and conduct money. – See detraction,…

Former payment to persons following a funeral procession (Kondukt; funeral cortege), usually clergy and – especially in the village environment – also school classes; the latter performed appropriate songs. Conduct from the Latin CONDUCERE…

Part of operational risk. Conduct risks can be divided into error risks, negligence risks and criminal risks. – An error occurs when the bank – in compliance with internal guidelines and external laws –…

Part of operational risk. Conduct risks can be divided into error risks, negligence risks and criminal risks. – An error occurs when the bank – in compliance with internal guidelines and external laws –…

Strictly speaking – a bankruptcy-remote special purpose entity: a subsidiary or affiliate institution whose asset-liabilitystructure and legal status makes its obligations secure even if its parent company or guarantor goes bankrupt), – which is…

A body established in 1958 to promote supervisory cooperation and exchange of information. A detailed set of rules and procedures has been developed for this purpose. – Cf. ECB Monthly Bulletin, May 2002, p.…

An event set up for the first time by the German Federal Financial Supervisory Authority in February 2010 with the aim of sharing the experiences of the wide circle of people involved in accounting…

In former times, in the Catholic and Lutheran churches, a voluntary, but now customary, payment in cash to the priest, originally especially after Easter confession (Easter confession: personal, penitent confession of guilt in words…

Unless otherwise defined, this is the expectation of economic agents that their domestic currency will remain stable and that their purchasing power will continue to exist. In the case of Germany, this value is…

In the financial market, a measure of the certainty of a loss expectation, i.e. the probability that a value determined by the value at risk (the calculated loss that may occur in the event…

Unless otherwise defined, the notification by a bank that a check will be cashed for an amount greater than the account to be debited currently has (overcheque situation). Attention: The financial encyclopedia is protected…

Commitment by the foreign exchange authority to provide – a requested amount of foreign currency – at a specific time and – for the purpose specified in the application, usually for a commercial import.…

In the event of any disputes over the competence of different authorities in the direct supervision of financial institutions in Germany – in practice: the German Bundesbank and the Federal Supervisory Office for Financial…

Unless otherwise defined, in the case of an institution, the best possible service to a customer on the one hand (benefit for the customer) and the profit opportunities from the relationship with the customer…

The situation, which is not uncommon in global transactions, in which different legal systems lead to different legal assessments of a transaction on the financial market (that two or more sets of laws that…

In an institution, the established procedures for dealing with queues in front of bank counters, in front of service points or in the field of transfer orders (rules and procedures that determine the order…

In an institution, the established procedures for dealing with queues in front of bank counters, in front of service points or in the field of transfer orders (rules and procedures that determine the order…

A large corporation that consists of divisions of unrelated, dissimilar businesses. The term “conglomerate” refers to a group of companies that are not related to each other as suppliers or customers. The term is,…

A phenomenon observed on the stock market in which investors are prepared to pay less for nested companies than the fair value of the individual parts of the group (the fact that a conglomerate…

Forecasts collected and published by the European Commission in Brussels from consumer surveys in various EU countries. Of importance to the central bank with regard to inflation expectations. – See banknote value restriction, purchasing…

Unless otherwise defined, in the financial market this is the monetary value of a transaction, usually before deducting fees (the money value of a transaction, that is the number of papers multiplied by the…

A stock of euro cash held at the ECB by a bank outside the euro area. Because about fifteen percent of euro coins and banknotes circulated abroad in 2007, such warehouses seem appropriate. –…

With regard to the central bank’s policy, the requirement that all measures of its policy must be taken in a clear and manageable sequence. Technical changes, including in the use of individual central bank…

With regard to the central bank’s policy, the requirement that all measures of its policy must be taken in a clear and manageable sequence. Technical changes, including in the use of individual central bank…

Term from supervisory law and referring to institutions that operate in several countries or even worldwide. Here, the national supervisory authority responsible for the parent company (group management) must cooperate with the respective supervisory…

The combining of several older bonds issued into a new bond with more market-oriented terms, usually by the fiscal agent. The older securities included in the new bond are often called consols. – Short-term…

The achievement of normal conditions of supply and demand after periods of exceptional market conditions. – The inclusion in the balance sheet of companies that are under the controlling influence of the reporting company,…

Unless otherwise defined, a loan that consolidates, or pays off, several old loans and replaces them with one new loan, usually to obtain a lower interest rate or lessen monthly payment by extending the…

In the financial market, the joining together of several institutions on a case-by-case basis; usually with the aim of placing a larger bond on the market (an alliance of banks, set up to fund…

In relation to the financial market, the assumption that correlations and volatilities of financial market products are basically constant over time. At the latest since the subprime crisis, this assumption – which was implicit…

Biting term for the fact that “vested interests are untouchable. Legislators find it extremely difficult to cut government spending even slightly in any field, such as social welfare, cultural promotion, education or defense. Monetary…

Biting term for the fact that “vested interests are untouchable. Legislators find it extremely difficult to cut government spending even slightly in any field, such as social welfare, cultural promotion, education or defense. Monetary…

The transfer of the risk that a construction project will not be completed as contractually agreed to an insurance company (insurance that a construction contract will be successfully completed). The contractual partner of the…

Distributions to the shareholders of a newly formed corporation during the construction of the facilities. – Interest on a loan in connection with a housing or factory construction project. – See employer loan, construction…

Especially in older documents, reserve for building projects. – Today often used with regard to the capital to be raised for the construction of a freeway (funds required for the construction of a freeway).…

Term from the central bank’s vocabulary. In this case, the central bank explains and justifies measures. However, it does not comment on the details so as not to send the wrong signals to market…

Term from the central bank’s vocabulary. In this case, the central bank explains and justifies measures. However, it does not comment on the details so as not to send the wrong signals to market…

A body set up by the International Monetary Fund in 2007 to discuss measures to address global economic imbalances. For the time being, issues such as greater exchange rate flexibility in various countries in…

In general, any kind of advice, including advice given to clients by an institution. – In Germany, anyone who advises companies on their capital structure, business strategy or mergers and acquisitions on a full-time…

In the case of banks, the explicit recommendation (exciplit recommendation) to the customer to undertake or refrain from certain transactions. – However, an advisory relationship is only established by a civil law contract concluded…

A (large) auditing firm advises a company and also confirms the annual financial statements. Because – many people, especially the managers of major investment management companies, viewed this mix with growing suspicion and were…

Twelve-member board established at the Federal Financial Supervisory Authority to advise the agency on consumer protection issues. – See committee mania, consumer complaints, consumer protection forum. – Cf. BaFin Annual Report 2012, p. 17…

Twelve-member board established at the Federal Financial Supervisory Authority to advise the agency on consumer protection issues. – See committee mania, consumer complaints, consumer protection forum. – Cf. BaFin Annual Report 2012, p. 17…