English

Anybody can report complaints about misconduct in the financial sector to the complaints office of the supervisory authority. – However, the Federal Financial Supervisory Authority acts solely in the public interest. It is therefore…

Anybody can report complaints about misconduct in the financial sector to the complaints office of the supervisory authority. – However, the Federal Financial Supervisory Authority acts solely in the public interest. It is therefore…

See cover letter, consumer credit, purpose of credit, productive credit, installment payment. – Cf. ECB Monthly Bulletin, October 2007, pp. 89 ff. (demarcation issues). Attention: The financial encyclopedia is protected by copyright and may…

Agency set up in the U.S. in the wake of the financial crisis triggered by the subprime crisis in 2009 with the task of regulating the mortgage loan and card business in particular. Attention:…

Means that directly satisfy human needs. They do this either once, such as food, in which case they are referred to as consumables, or several times, such as clothing, furniture, cars or household appliances,…

Official term for the insolvency of a private household. – See consumer credit. – Cf. Bafin Annual Report 2012, p. 32 (statistics; in 2012, around 98,000 cases with outstanding claims of EUR 5.4 billion)…

Official term for the insolvency of a private household. – See consumer credit. – Cf. Bafin Annual Report 2012, p. 32 (statistics; in 2012, around 98,000 cases with outstanding claims of EUR 5.4 billion)…

In the broader sense, any type of loan extended by a bank to an individual customer or to a private household (a line of credit extended for an individual or a private household). –…

The monetary value of expenditure by private households as determined by official statistics and broken down by groups of goods in the price index of the standard of living. – See procurement shifts, Harmonized…

The monetary value of expenditure by private households as determined by official statistics and broken down by groups of goods in the price index of the standard of living. – See procurement shifts, Harmonized…

The expenditure of private households on goods and services statistically measured for a given period on the basis of a basket of goods. – See goods purchased, HICP; cost-of-living index. Attention: The financial encyclopedia…

Unless otherwise defined, the portion of gross domestic product used to purchase goods and services domestically. In the euro area – and in the U.S.A. – this share is around seventy percent of aggregate…

In monetary psychology, a private household that spends with the aim of gaining attention, prestige, prestige in the social environment through the purchase of goods. – See money man, money hat, money people, money…

In monetary psychology, a private household that spends with the aim of gaining attention, prestige, prestige in the social environment through the purchase of goods. – See money man, money hat, money people, money…

Private households are saving an above-average proportion of their income compared with a longer observation period before. This is being closely monitored by central banks. This is because weak consumption has a direct impact…

The fact that – with high public debt but – relative monetary stability and – correspondingly low inflation expectations, many private households limit their current consumption in favor of saving because they expect a…

The fact that – with high public debt but – relative monetary stability and – correspondingly low inflation expectations, many private households limit their current consumption in favor of saving because they expect a…

In jargon, a workmate not able to work in a team, who avoids the company and, therefore, the aid and assistance of coworkers. – See Airbag, File Abuser, Jack of All Trades, Autonomously Acting…

a working group consisting of representatives of European banks and central banks with the aim of linking payment systems as smoothly as possible. – See Business Continuity Program, EFTPOS, intraday credit, retail payment systems,…

Unless otherwise defined, the risk of systemic risk arising from the transmission of difficulties at a failing institution to other banks and to the financial market as a whole. – Direct contagion effects arise…

If certain measures are taken on financial markets in one country, market participants expect that other (neighboring; economically closely related to the country) countries will soon take the same or similar precautions. They therefore…

Temporary offer (provisional offer) of banking services in a metal container (bulk container; container) erected and converted for this purpose, especially in pursuit of on-site presence at major events such as festivals, church congresses,…

A term that emerged in the wake of the subprime crisis to describe a position that is subject to a very high probability of default. (high probability of default) and for which the bank…

Rollover fee, usually borne by the seller in securities trading. – In commodity futures trading, the usual market quotation in which the spot price is lower than the forward price (regular market situation in…

A stockbroker who lends money to another broker on a short-term basis, usually until the next trading day, to balance the broker’s accounts, and takes securities into custody from the broker as collateral for…

In old documents, this proper word means payment in cash. The clause “in contanti” in contracts means: payment of a debt due by coins or banknotes. – See cash payment, spores reffel. Attention: The…

In the stock market formerly often said of the group of baissiers: sellers who have the expectation that prices will fall. Attention: The financial encyclopedia is protected by copyright and may only be used…

In relation to financial markets, the level of barriers to entry for potential competitors. Consolidation can increase contestability. – However, experience shows that even with a very small number of competitors, a large bank…

An item set aside in the budget of many public sector entities for unforeseen expenditures or for anticipated purposes of uncertain amounts (capital set apart to provide for unforeseen expenditures or for anticipated purposes…

The holding of cash in excess of what is actually required, – in order to be prepared for possible cash outflows exceeding the normal level, or – because the (punctual) receipt of payments from…

On the stock exchange, an order to buy or sell an asset if a predetermined price of another asset is reached (an order to carry out a transaction in an asset if the price…

A possible asset that has arisen from past business transactions. However, its realization is only confirmed by the occurrence or non-occurrence of one or more uncertain future events (a claim that can be realized…

A bond that an issuer contractually repays with shares (bonds that have to be converted into shares of the issuing company). In this case, only the interest payable on an ongoing basis is paid…

Facility created by the International Monetary Fund in 1999 to obtain loans very quickly in the event of a particular crisis situation in a country. – Cf. 2002 Annual Report of the Deutsche Bundesbank,…

A possible obligation in the form of a payment arising from past business transactions. It cannot be precisely determined at present because – its realization must first be confirmed by the occurrence or non-occurrence…

A possible loss that would be incurred if a certain risk event were to happen. – See probability of default, event risk, exposure, imparity principle, credit risk, risk. Attention: The financial encyclopedia is protected…

Contract under which the terms of a future interest rate swap are fixed in advance. Against – payment of a premium, – the buyer of the option contract acquires – the right, but not…

International body set up by globally active private banks in 2002 with the purpose of exchanging currencies step by step (payment versus payment, often abbreviated to PvP). This eliminates the risk of default if…

Collective term for medals with a conspicuous, sharply defined edge, which was subsequently ground in through a deep groove. Genuine pieces come from Rome of the later imperial period (4th-5th c.) Most contorniats are…

In the financial market, often used for any binding legal agreement that is enforceable in a court of law or by binding arbitration. – Basic term used on commodity futures exchanges. It is more…

A legally valid, written record of the purchase or sale of financial instruments, especially shares. It lists all important terms of the contract (the written confirmation of a trade describing the market, the unit…

The acquisition and sale of securities, money market instruments or derivatives in the name of a third party for the account of a third party. – In Germany, such service providers are subject to…

A condition in a financial agreement that enables the investor to take back his funds if the result represented is not achieved. Attention: The financial encyclopedia is protected by copyright and may only be…

In factoring, the usual deduction – usually one fifth – when paying out the purchased receivables. The amount serves to compensate for any difficulties of any kind in connection with the receivable. If the…

In factoring, the usual deduction – usually one fifth – when paying out the purchased receivables. The amount serves to compensate for any difficulties of any kind in connection with the receivable. If the…

The contract between an issuer and an analyst to provide an opinion on the rationale of buying the relevant securities. In this case, the analyst is obliged to point out the fact that he…

Since 1871, the contract bill for the transfer of securities in Germany had to be provided with a revenue stamp. This revenue stamp had to be cancelled. – See stock exchange turnover tax. Key…

On the commodity futures exchange, a delivery contract that may be assigned to a third party (a contract that permits the holder to transfer his rights to a third party; exchange-traded contracts in general…

Contract under which a company outsources all assets earmarked for employee pensions to a trust company, which then invests these amounts in various financial instruments. – See European Master Agreement, outsourcing, pension obligations. –…

Also said in older financial language for – the discharge of a bill debt; – the correction of an accounting error. – See mistrade, ristorno, reversal. Attention: The financial encyclopedia is protected by copyright…

The assumption that a certain market trend is almost always based on (erroneous, wrong; fallacious) herd behavior. Therefore, it is worthwhile to adopt an opposite behavior. This is because high profits can be made…

Investment decisions against the trend on the financial market – determined by the expectations of a majority of investors. – See counter speculation theory. Attention: The financial encyclopedia is protected by copyright and may…

In connection with money in general – any payment which is to be made – for any thing, – from any circumstance and – in the sum as the amount of the payment either…

The amount remaining after deducting variable costs from the net sales revenue (the sales price minus the variable cost). It is used to compensate for fixed costs (capacity costs, cost of readiness). Proceeds exceeding…

The participation in the capital of a company in which, however, the capital provider – be it an institution, another company or an individual – does not appear externally. Also, silent capital contributions have…

According to Section 1 of the German Banking Act (KWG), control is deemed to exist “if an enterprise is deemed to be the parent company in relation to another enterprise or if a similar…

According to IAS (22.8, 27.6) – the power to govern the operating policies of an enterprise and – the power to obtain benefits from its activities. – See Creep, Participation, Qualified, Control Shark Watcher,…

Term used in German budget law in connection with the Stability and Growth Pact. In Germany, the so-called debt limit or debt ceiling for the federal budget is implemented via a control account. At…

The amount an investor is willing to pay to obtain a controlling interest – generally in an investment and – in particular in a company (the amount paid to gain adequate ownership interest to…

In general, the department at a bank that compiles and prepares all information important for the management of business processes in order to support the decisions of the management. In practice, the scope of…

In the language of the ECB, an entity which, by virtue of capital links or other relationships, exercises a controlling influence over other entities (a controlling company has enough voting stock to influence the…

A person or group of persons owns so many shares in a stock corporation that they can determine management decisions; as a rule, this includes ownership of more than half of the voting capital…

Medium-term financial planning (budgeting) and liquidity management in general or in a bank. – A banking service in which financial planning and liquidity management for small and medium-sized enterprises are performed for a fee…

The profit, taking into account storage costs, to be gained from holding a good in readiness – i.e., having it in stock today – rather than having to procure it for use in the…

The profit, taking into account storage costs, to be gained from holding a good in readiness – i.e., having it in stock today – rather than having to procure it for use in the…

In older documents, generally coins put into circulation on the basis of a coinage agreement (coinage convention; monetary convention) between two or more minting principalities, as for example in 1750 on the basis of…

In stock exchange parlance, this means that the spot price and forward prices converge more or less steadily until the last trading day of a forward contract (the narrowing of futures prices to cash…

In a bank, the close integration of information technology, telecommunications and operational business, usually in accordance with international standards, so that only one system is used worldwide. – See File management, central. Attention: The…

In relation to the financial market, the fact that market conditions are becoming increasingly convergent worldwide. The reasons for this are – the development of corresponding financial innovations and advances in information and communications…

In the context of the EU Treaty, certain provisions; these include, in particular, the autonomy of the respective national central bank. – See convergence. Attention: The financial encyclopedia is protected by copyright and may…

In the case of bonds, the – previously contractually stipulated change – in the terms and conditions, especially with regard to interest and redemption. – In the case of options, a special strategy, namely…

In the case of bonds, the – previously contractually stipulated change – in the terms and conditions, especially with regard to interest and redemption. – In the case of options, a special strategy, namely…

In financial terminology – generally, the change of the conditions of an issue or – in particular – of the interest rate of a bond downward or upward. – The exchange of an amount…

In principle, the issuer of this type of bond has the option of changing the bond terms. He uses this conversion, for example, to lower the interest rate or to extend or shorten the…

A payment generally granted by the issuer of a security to holders of the security who – do not exercise the conversion option and – in the case of bonds in particular, consent to…

The rates irrevocably fixed on January 1, 1999, between the EUR and the currencies of the Member States that adopted the EUR. – Rates officially set by the tax authorities for companies and individuals…

The rates irrevocably fixed on January 1, 1999, between the EUR and the currencies of the Member States that adopted the EUR. – Rates officially set by the tax authorities for companies and individuals…

A special procedure for options. One links – a short future with – a synthetic long future, namely long call and short put with the same strike price, – related in each case to…

Commitment by a central bank to exchange foreign payment instruments offered to it into its monopoly money (central bank money; base money) at the exchange rate of the day. Convertibility thus means that a…

The exploitation of valuation differences between convertible bonds and shares of a company (an investing strategy that involves the long position on a convertible security and a short position in its converting common stock).…

Formerly used to pay the cook appointed for special occasions, such as baptisms, weddings, funeral receptions, or anniversaries. In home economics schools and courses, this is still used today to pay for the consumption…

In the course of Basel II, a measure of the minimum capital requirement. According to this, as was already the case under Basel I, the capital ratio, namely the ratio between equity and risk-weighted…

Increase in expenses during that accounting period in a company with the aim of anticipating future payments (an accrual of operating expenses and the creation of liability accounts done in an effort with the…

Institutions founded in Germany as early as 1895 with the purpose of improving the supply of credit to small and medium-sized enterprises. They have a reputation for being close to their customers, but their…

Survey of cross-border portfolio investment conducted annually by the International Monetary Fund since 1997, from which central banks can obtain important information. – See Two-Pillar Principle, Balance of Payments. – Cf. ECB Monthly Bulletin,…

Demand – above all on the part of some deficit countries within the EU, raised around 2010 and then taken up as a proposal by the EU Commission – to equalize wage costs across…

If not defined otherwise, the common measures and the objectives aimed at equally for all, as decided on occasion of the meeting of European heads of state and government in June 2010. This is…

All services related to the supply of credit to companies willing to invest, to private households and to public authorities. – Financial history shows unequivocally that as soon as institutions became heavily involved in…

Pursuant to Section 10 of the German Banking Act (KWG), equity capital that an institution must hold in order to meet its obligations to creditors and to provide security for the assets entrusted to…

The ratio of a bank’s hard equity capital, which is immediately liable in the event of losses, to its risk positions, i.e., the loans granted. Although Basel II only required a minimum core capital…

Under Basel III, based on the legal form of a bank and comprising only issued shares and retained earnings. All other capital components, even if they are designed to cover losses, such as silent…

In a company and in a bank, the business areas in which a particularly high success rate is recorded (fields or tasks at which a company does extremely well). – See core competency, banking…

Items on the liabilities side of the bank balance sheet which – are usually permanently available to a bank and – are not subject to too many changes over time. These include sight deposits…

The net inflow of cash (revenue from sales and other current activities less all costs) from the primary operations of a company (earnings that include merely the results of the primary operating activities of…

The permanent increase in prices. Transient (sector-specific or erratic) price movements, such as the price of oil in particular, are excluded; often also referred to as headline inflation. – Admittedly, the elimination of certain…

In central bank parlance, the increase in liquidity beyond that needed to finance aggregate potential growth. – See Growth. – Cf. Deutsche Bundesbank Monthly Report, January 2005, pp. 24 ff., ECB Monthly Report, July…

Principles of effective banking supervision, as established by the Basel Committee on Banking Supervision. They are intended to ensure that – gaps in the international supervisory system are prevented, and – there is sufficient…

Commodity exchange on which, in addition to grain of all varieties in demand, seed, fertilizer and animal feed are usually traded by spot or forward. – See commodity fund, option, commodity futures contract. Attention:…

On the stock exchange, in general, the attempt by a single large market participant or a group of market participants joining together for this purpose to buy up all available pieces of a class…

A well-known person, company, or public entity-including various EU funds-that participates in an engagement and usually contributes, in addition to capital, intangibles such as market knowledge, contacts with foreign clients, business connections, or-as is…