on 2023/07/21 by alex1, []

The requirement that, in the event of a loss at a bank, either – all employees in the active business area, i.e. not including those employed in merely administrative activities, such as janitor services, telephone exchange or plant security (protective service), or – executives above a certain rank in the hierarchy must contribute to covering […]

on 2023/07/21 by alex1, []

Unless otherwise defined, public capital includes all assets owned by the state that – have a permanent value and – yield benefits for the general public. – See assets, physical assets, social capital. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. […]

on 2023/07/21 by alex1, []

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 […]

on 2023/07/21 by alex1, []

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 […]

on 2023/07/21 by alex1, []

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, […]

on 2023/07/21 by alex1, []

The practice of even large companies, not only in the USA, to hide losses and debts at subsidiaries. The Sarbanes-Oxley Act of 2002 made this practice a criminal offense in the USA. Thanks to the vigilance of regulators, cases of loss hiding in banks and even in financial conglomerates in the EU have not come […]

on 2023/07/21 by alex1, []

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. […]

on 2023/07/21 by alex1, []

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. […]

on 2023/07/21 by alex1, []

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, […]

on 2023/07/21 by alex1, []

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 many cases in the course of the financial crisis that followed the subprime crisis. When special-purpose entities and funds in financial […]