English

Debt issued by corporations in the form of bonds to get investors’ money with a promise to pay out interests. – See corporate bonds. – See the monthly statistical supplement “Capital Market Statistics” of…

Fixed-interest securities issued by large companies with the capacity to issue them. Their price usually closely follows the share price of the respective issuer. The term ranges from three to thirty years. In Germany,…

Fixed-interest securities issued by large companies with the capacity to issue them. Their price usually closely follows the share price of the respective issuer. The term ranges from three to thirty years. In Germany,…

Bonds issued by a company for the purpose of raising borrowed capital. – See profit taxation, corporate bonds. – Cf. BaFin Annual Report 2010, p. 26 (comparison of yields with those of government bonds…

Unless otherwise defined, this refers to the group management (central management) of a corporate group. – See Octopus. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes…

In relation to a bank, a uniform style of clothing worn by members of an institute while participating in the bank’s activity. – In the course of efforts to create a corporate identity, i.e.,…

As a doctrine of coherent statements about how to plan and control the flow of money in a company in the most advantageous way (area of business science dealing with the financial decisions corporations…

As a doctrine of coherent statements about how to plan and control the flow of money in a company in the most advantageous way (area of business science dealing with the financial decisions corporations…

Any dealings of a bank with its corporate customers. – Doctrine and practice relating to the financing of a corporation (specific area of finance dealing with the financial decisions corporations make, including of the…

Fund set up by a company – or, less frequently, also in relation to an institution -, assigned to it and fed by it, which, depending on its specific objective and in principle on…

Generally, a procedure with the aim of leading, administering and/or monitoring a company (the method by which a corporation is directed, administered and/or controlled). – Guidelines and regulations for the management and supervision of…

Body of fifteen experts set up in 2004 by the EU Commission to identify best practices in corporate governance in all member states and advise the Commission. – See Investor protection, Committee mania, Money…

Related to the operation of a bank in the As a rule, there is an increase in sales. However, this only has a positive effect on profits if the additional costs incurred as a…

Related to the operation of a bank in the As a rule, there is an increase in sales. However, this only has a positive effect on profits if the additional costs incurred as a…

Countries and territories that favor the establishment of corporations by various means (jurisdictions with laws friendly to corporations, thus encouraging them to choose that jurisdiction as a legal domicile). However, a corporate haven does…

Loans granted by a country’s banks to companies. These are reported to the central banks and monitored by the ECB under the two-pillar principle. – The share of loans to companies as a percentage…

Special type of asset-backed securities, a non-significant proportion of which are now privately placed in the euro area. These are securities issued by special purpose vehicles, where the special purpose vehicle in turn has…

Special type of asset-backed securities, a non-significant proportion of which are now privately placed in the euro area. These are securities issued by special purpose vehicles, where the special purpose vehicle in turn has…

The incorporation of one company into another (the purchase of controlling majority in one company by another firm, in order to take over assets and/or operations) – See Mergers and Acquisitions, Deadwood, Takeover Offer.…

The incorporation of one company into another (the purchase of controlling majority in one company by another firm, in order to take over assets and/or operations) – See Mergers and Acquisitions, Deadwood, Takeover Offer.…

Subsidiary of a large company that realizes a creative idea (innovative idea) that could hardly reach maturity in the – cumbersome – parent company. – Often, the innovation comes from the ranks of the…

In general, the voluntary and unpaid work of a group to carry out charitable projects. – In particular, the unpaid commitment of employees from various departments of a bank to help a customer who…

In the legal sense, an association of persons: a group of persons granted a state charter legally recognizing them as a separate entity having its own rights, privileges, and liabilities distinct from those of…

In the ECB’s statistics – all domestically incorporated stock corporations, limited partnerships on all quasi-corporations, i.e. partnerships, general commercial partnerships and limited partnerships that are not institutions. – All other persons and groups of…

Often used as a noun in older literature in the sense of acknowledging, confirming, certifying a submitted statement of account in general and the statement of account (bank statement) submitted by a bank in…

Risk that exists when there is a high correlation between – counterparty default probability and – general market risk. – See group of connected customers, counterparty risk, concentration risk, risk, systematic, risk models, stress…

Risk that arises in the event of a high Interdependence between – the expected default frequency of a counterparty and – the replacement cost of existing transactions with this counterparty. – See counterparty risk,…

An arrangement whereby one bank, the settlement bank, service-providing bank or correspondent, makes or receives payments – potentially performing other banking services in addition – on behalf of another bank, the customer bank, user…

an automated process established by the European System of Central Banks with the purpose of enabling counterparties to use eligible collateral in a cross-border context. In the CCBM, national central banks act as custodians…

Common abbreviation for the Counterparty Risk Management Policy Group. 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.,…

Contract between the producer of a product or project and its financiers. Under this arrangement, the financiers receive the product free of charge, i.e. without payment, if they bear all the associated costs (an…

In the financial sector, the costs of an institution in relation to its total output, i.e. all types of services. – In another sense, in the case of a bank, also the costs per…

Opportunity costs calculated for the return on equity in a company. – Often calculated using the formula cost of equity = risk-free interest rate plus risk premium on equity, where the risk-free interest rate…

The cost of external financing of non-financial corporations is calculated by the ECB as a weighted average of the cost of equity and debt, based on holdings adjusted for valuation effects and inflation expectations.…

Statistical measure expressing changes in the prices of goods as demanded by private households. In economic terms, it is the most important indicator, since it has a direct and indirect impact on: – central…

Expenses incurred in connection with the procurement of funds. They are made up of many individual items from case to case, such as commissions, brokerage fees, notary and land registry fees, payments to appraisers,…

In relation to the financial market, the requirement that banks and insurance companies disclose their costs to customers, in particular their administrative costs (administration costs: expenses incurred in directing and controlling an institution; the…

In the case of capital management companies, a contractually agreed, rigid payment schedule can ensure that the investor spends a fixed amount on the purchase of fund units within certain time periods (month, quarter).…

According to IFRS, a bank’s administrative costs in relation to its income, roughly net interest income, net fee and commission income and net trading income. The ratio is considered essential in assessing the cost…

Unless otherwise defined, the ratio of a bank’s administrative burden to its operating income. The ratio is considered an important indicator for assessing the efficiency (ratio of costs to performance) and productivity (ratio of…

Calculation of the risk margin for insurance companies prescribed in the course of Solvency II. According to this approach, the present value of the cost of capital required in the future must be determined.…

Unless otherwise defined, this refers to compensation for the loss of purchasing power suffered by dependent employees as a result of a deterioration in the value of money. As a rule, this takes the…

The increase in selling prices by firms due to the fact that their costs-such as wages, interest, taxes, commodity purchases-have increased. – See demand-pull inflation, monetary stability, inflation, wage-price spiral, savings rate. – Cf.…

Expression, especially among financial journalists, for very high losses of a company in general and an institution in particular. – See swan song, bank scolding, bloodbath, bonus, money grave, money burning, head-in-the-sand behavior, employee…

All expenses incurred by a company in connection with – entering a previously unserved business segment for the first time, or – entering a foreign, unfamiliar domestic or foreign trading market. – For banks,…

In the context of project financing, all expenses that would have to be spent if the project did not proceed according to plan. – See Developer. Attention: The financial encyclopedia is protected by copyright…

A term for costs that is now frowned upon in economics, but is still very common in older literature and in some cases also in colloquial language. – The occurrence of extraordinarily high costs…

A term for costs that is now frowned upon in economics, but is still very common in older literature and in some cases also in colloquial language. – The occurrence of extraordinarily high costs…

Reduction in the amount of wages paid by an employer (in early industry) in return for providing the employee with a cottage (cottage: small home without a basement and usually consisting only of a…

Additional capital surcharge dependent on the business cycle. It is measured as the ratio (quotient; split result) of common equity tier 1 capital and risk-weighted assets. – See coverage ratio, capital buffer, liquidity buffer,…

Agreement reached by the major industrialized nations at the end of 2010 in anticipation of possible regulations in Basel III, according to which national supervisory authorities can force domestic banks to increase their capital…

In general, the characteristic of certain economic variables – not to follow the business cycle in the same direction (in a broader sense; such as certain consumer goods, especially basic foodstuffs) or – even…

A counterfeit cash card that has not been put into circulation by the card-issuing bank but has been produced by counterfeiting workshops – currently mainly in Asia. – Since around 2000, counterfeit cards have…

Coin of metal made with intent to defraud – reworked – or, like very many coins from antiquity offered as collectibles, even made new. – See aftergeld, alliage, billonnage, eteostichon, money, evil, gold scale,…

Unlawfully produced coins and banknotes of a central bank. The reproduction of older coins is not legally considered counterfeit money, but is regarded as fraudulent falsification or fraud when put into circulation. – The…

As part of a central bank’s banknote management, the task of – preventing the counterfeiting of paper money altogether, if possible, and – removing counterfeit banknotes from circulation. – The first task is performed…

In general, someone who produces counterfeit coins and puts them into circulation. – Today said of countries that issue coinage deceptively similar to the euro coins, but these coins have only a fraction of…

Especially in older documents, the capital provided by the groom, usually held in trust (fiduciary managed) and invested in interest-bearing investments. Its purpose is – to secure the livelihood of the divorced wife from…

Unless otherwise defined, the opposite party in a financial transaction. – See business partner. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University…

In general, the counterparty in a financial transaction (the opposite party in a bilateral agreement, contract, or transaction in the financial market). – At the ECB, counterparty means a monetary financial institution. – Counterparties…

Risk of default by a counterparty (risk to each party of a contract that the counterparty will not live up to its contractual obligations). – See counterparty risk, bid limit, settlement, Gini coefficient, Herstatt…

The possible case that in a transaction on the financial market the counterparty becomes insolvent (the risk connected with the financial stability of the party entered into contract with, more precisely: the risk that…

After the collapse of the hedge fund Long-Term Capital Management (LTCM) in 1999, a working group set up by leading representatives of internationally active banks with the aim of breaking down risks in hedge…

Section 1 (1) sentence 2 no. 12 KWG in conjunction with Section 1 (31) KWG. 31 KWG defines a central counterparty as an entity that interposes itself, in one or more markets, between the…

A guarantor, also called an intermediary in older documents, does not – as can even be read in textbooks – contractually stand in for the actual creditor, such as the bank granting a loan.…

In older documents, the study of the activities of a merchant in his study (Kontor; counting house, comptoir), comprising above all the three areas of correspondence, payments, including monetary practice, and bookkeeping, accounting. –…

An assessment measure that was pushed to the forefront by rating agencies in the wake of the financial crisis that followed the subprime crisis in 2007 and which takes into account the economic strength…

A highly regarded global ranking of the world’s countries by the U.S. Institutional Investor Magazine, based on surveys of the financial community. In 2011, Germany was ranked eighth, Denmark sixth, followed by Finland, the…

Form of operational risk of a bank that is also significantly active abroad. This primarily refers to political risk and transfer risk. As some major banks in the euro area generate a quarter of…

assets of a capital management company whose portfolio is focused on – a single country, such as Switzerland, or – a currency area such as the euro area. – See equity fund, unit certificate,…

The interest or dividend certificate entitling the holder to the redemption of the respective income from a bond or share; see also Section 803 of the German Civil Code. – In the case of…

A debtor’s record of – repayments made on a loan, or – deposits to a savings account, sent from time to time to the bank or, more generally, to the creditor, now usually electronically,…

A debtor’s record of – repayments made on a loan, or – deposits to a savings account, sent from time to time to the bank or, more generally, to the creditor, now usually electronically,…

Unless otherwise defined, the coupon rate for a bond is the future interest payments during the remaining running time plus the redemption payment at maturity. – If the coupon rate calculated in this way…

The quotation for interest or dividend coupons denominated in foreign currency. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard…

Someone who lives on capital income or real estate income without – yet – participating actively in business life; redeem = here: to convert a coupon into cash. – The term is mostly used…

Contractually fixed date on which the payment (coupon) of an interest-bearing financial instrument is to be made. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without…

The contractual exchange of a fixed interest payment for a variable interest payment, calculated – on a specific notional amount, – for an agreed term (duration) and – on the basis of a market-quoted…

Special tax of twenty-five percent on the income from debt securities held by non-residents, introduced in Germany in 1958 and not abolished until 1990. The purpose of the tax was to curb the inflow…

A decision, guided by – thoughtful consideration and – after a realistic assessment of one’s own strengths – taking into account the consequences of failure, – to engage in the financial market with a…

The business that occurs in an institution on a working day, the operations that usually have to be performed on a working day, The term is frequently used in Swiss German, but only rarely…

Damage to the assets of others caused by deception with the aim of personal gain by disseminating false information on facts concerning market conditions in the financial market, usually by means of false ad…

Fees (fees; sporteln) payable when the services of a court are used: Court costs. – Former charge for the maintenance of a court. – Expense allowance (expense allowance) for associate judges in court, also…

In older documents, the term for court costs, namely – for the fees for the maintenance of a court, as well as – for fees that had to be paid for services of a…

In earlier times, the private treasury of the sovereign, into which mainly the proceeds from the domains (domain, seigniory; sovereign landholdings) flowed. – See apanage, hand money, centimeter money. Attention: The financial encyclopedia is…

In relation to the financial market, a written statement made by a company to the lending bank (an agreement in a loan document to do or not do something specified). It specifies in detail…

The injection of liquidity into a target company when it needs new funds from the investor as part of a leveraged buyout. – However, because the financing structure in a leveraged buyout is usually…

Unless otherwise defined, the supervisory control of Pfandbrief issuers. The audit examines whether the assets serving as cover for the Pfandbriefe comply with the legal requirements. – See mortgage bank, liquidity management. – Cf.…

In the case of a stock corporation, a ratio formed by the distributable profit divided by the amount paid out (the total net profit a company has available for distribution as dividend, divided by…

In an open market operation, the ratio of the volume of banks’ total offers to the central bank’s allotment volume. – See tender, underbidding, variable rate tender procedure, allotment amount, allotment rate, marginal, allotment…

Generally, to close out an open position. – In the case of options, the purchase of an option or stock to close out an existing short position for either a profit or loss. –…

Unless otherwise defined, the holding of assets in order to be able to pay off a debt item when it falls due. – See reserve. Attention: The financial encyclopedia is protected by copyright and…

Investments that insurance companies are required by law to hold for insurance benefits falling due in the future, formerly called cover assets. – See share price risk, actuary, coverage rate, guarantee fund. – Cf.…

Investments that insurance companies are required by law to hold for insurance benefits falling due in the future, formerly called cover assets. – See share price risk, actuary, coverage rate, guarantee fund. – Cf.…

For a bank – unless explicitly stated otherwise – the ratio of – capital equity – plus loans and advances to borrowers (loan reserves) – minus nonperforming loans – to total assets. – The…