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 […]

on 2023/07/21 by alex1, []

Rule of thumb calculated in the USA in connection with the subprime crisis, according to which banks reduce new loans to be granted by ten USD for a loss of one USD. In the case of institutions operating with a very high proportion of borrowed capital, this ratio was often even higher. No reliable figures […]

on 2023/07/21 by alex1, []

Any loss not precisely specified in its extent, a damaging decrease, in extreme cases even a total loss, such as of the purchasing power of money or of the confidence of customers in a bank. – Any kind of reduction of the assets of an economic entity (the sum an entity loses on balance). – […]

on 2023/07/21 by alex1, []

A special fund that holds high-risk exposures. – See Vulture Fund. 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. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

on 2023/07/21 by alex1, []

Payments from an underlying set of loans are used to service at least two mutually graded risk positions or tranches that have different degrees of credit risk. In contrast to a bond, which creates a liability for the issuer, the payments to the investors are dependent on the servicing of the respective underlying receivables. The […]

on 2023/07/21 by alex1, []

The increase in the number of residents over the age of 65 in an area. This has a variety of implications for investment, government spending, and also for the stability of the currency. – See old-age dependency ratio, Methuselah syndrome, stagnation, secular, aging. Attention: The financial encyclopedia is protected by copyright and may only be […]

on 2023/07/21 by alex1, []

The ability of an economic entity in general, and a bank in particular, to absorb losses without jeopardizing its own existence. The concept of the ability to absorb losses in the banking industry is not easy to outline. The key idea governing this notion is that appropriate instruments must not only allow their issuer to […]

on 2023/07/21 by alex1, []

A short-term loan granted by a bank to the organizer of a festivity such as a concert, stage play or similar performance. The loan is intended to enable the organizer to cover the expenses incurred in preparation for the festivity. The loan is usually repaid from the proceeds of ticket sales. – Savings banks, in […]