on 2023/07/21 by alex1, []

The risks of securitization are seen as follows: – the originating bank has little or no concern for the careful selection and monitoring of debtors; – demand for securitization paper can suddenly dry up, as was observed in the subprime crisis and the financial crisis that followed it, where an unexpected synchronization of defaults on […]

on 2023/07/21 by alex1, []

Option contract which contains the right to sell – a good such as foreign exchange, a financial instrument or a commodity – at a certain price – within a specified period of time. – A put option is bought when it is believed that the price of the commodity in question will fall. The seller […]

on 2023/07/21 by alex1, []

In older documents relating to an investment, the principal willingness to make such an investment. However, the investor has not yet decided on a specific investment or/and on a specific point in time. 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, []

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 Index of Consumer Prices, inflation measurement, composition effect, quality changes. – See the annex „Euro area statistics“ to the respective ECB […]

on 2023/07/21 by alex1, []

In an institution, the ability to provide business and information to customers within a given framework. – See churn rate, accessibility, ease of use, relationship management, call center, container banking, remote access, automated teller machine, branch, fully automated, well-managed, intensive care unit, customer defense service, customer retention, customer service, customer care agent, service line. Attention: […]

on 2023/07/21 by alex1, []

In general, the product of the probability of default and the amount of loss in the event of default. Banks are required by regulatory law to absorb corresponding losses with equity capital. – See Imparity principle. – Cf. BaFin Annual Report 2003, p. 37 f. Attention: The financial encyclopedia is protected by copyright and may […]

on 2023/07/21 by alex1, []

Pursuant to § 3 of the Remuneration Ordinance for Institutions, a compensation scheme is adequate if – incentives for management and employees to take disproportionately high risks are avoided and – the compensation scheme does not conflict with the monitoring function of the control units. – See bonus system, insurance compensation regulations. – Cf. BaFin […]

on 2023/07/21 by alex1, []

A vendor grants a loan to a buyer so that the buyer can use this money to purchase goods from the vendor (the lending of money by a company to one of its customers so that the buyer can purchase products from it. By doing this, the company increases its sales, even though it is […]

on 2023/07/21 by alex1, []

Receivables of one or more banks are – combined into a package (bundle, pool, special asset, portfolio), – the credit risk is separated by means of a credit derivative, and – the credit risk is sold to a special purpose entity; the credit receivable, however, remains – in the Difference from true sale securitization – […]

on 2023/07/21 by alex1, []

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 companies. – See mark-to-model approach. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes […]