on 2023/07/21 by alex1, []

Following the subprime crisis in the summer of 2007, which escalated into a global financial crisis in the fall of 2008, the regulatory authorities required originating banks to retain a certain percentage of the securitized securities issued in their own portfolios. This was intended to prevent originators from carelessly tranching and passing on risks from […]

on 2023/07/21 by alex1, []

A set of rules, particularly for stock corporations in the U.S., which sets out certain rules of conduct for the management board and supervisory board members. According to this code, managers and supervisory board members must make declarations at certain intervals, for example on the (sale) purchase of shares. It may be difficult or impossible […]

on 2023/07/21 by alex1, []

In the case of a bank, the possibility of at least partially offsetting losses from non-performing loans (bad-debt losses) against tax liabilities. – The tax law provisions on this vary from country to country, but are restrictive overall. It is assumed that banks will be more lax in granting loans if it is clear from […]

on 2023/07/21 by alex1, []

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 business or for sale to the customer (the extra advantage that firms derive from holding the product rather than the future). […]

on 2023/07/21 by alex1, []

Generally, the payment of a sum of money under a contractual agreement, especially said of employment contracts: salary, earnings, salary, pay. – The remuneration for services rendered by certain professions, such as lawyers (attorneys‘ fees), physicians (doctors‘ fees), authors (copyright fees), or artists: honorarium, fee, royalty; also called equivalent (aequivalent) in older literature. For banks, […]

on 2023/07/21 by alex1, []

Unless otherwise defined – and also in statistics – the total finished and sold output of a plant during a given period. – See potential labor force, capacity utilization, infrastructure, capital stock, capacity utilization, potential growth, output, output gap, Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes […]

on 2023/07/21 by alex1, []

Unless otherwise defined, this refers to savings banks and cooperative institutes (Volksbanken, Raiffeisenbanken). – See local bank, credit cooperatives. 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/ […]

on 2023/07/21 by alex1, []

Part of operational risk. Conduct risks can be divided into error risks, negligence risks and criminal risks. – An error occurs when the bank – in compliance with internal guidelines and external laws – suffers a loss. The risk of error is therefore caused by human error and includes, above all, input errors, clerical errors […]

on 2023/07/21 by alex1, []

The empirically proven fact that a loss on an investment is felt less strongly by investors if it occurs by the middle of the investment period. In this case, there is still enough time to compensate for the setback. With later losses this possibility is missing. Therefore, numerically equal loss is perceived more painfully now. […]

on 2023/07/21 by alex1, []

In general, all tradeable commercial papers which are backed by assets of the issuer. – In particular, debt instruments backed by payments from a portfolio in which a large number of individual receivables are pooled. At the end of 2007, before the subprime crisis turned into a financial crisis, investors (banks, funds, insurance companies and, […]