on 2023/07/21 by alex1, []

In most countries, owners of a significant stake in a bank are subject to supervision by the supervisory authorities; in Germany, this is governed by Section 2b of the German Banking Act (KWG). The aim of this provision is to ensure the solvency of the individual bank and, in addition, to counter risks to creditor […]

on 2023/07/21 by alex1, []

Declaration by which the instructing party authorizes a third party (instructed party; usually a bank) to perform a service for the account of the instructing party to the beneficiary (instruction recipient) designated by the corresponding declaration of intent (in writing [document], electronically or also verbally). The instructed party is authorized to make payment to the […]

on 2023/07/21 by alex1, []

A swap transaction in which an investor exchanges – his fixed investment for a floating one (fixed rate payer swap) or – his floating investment for a fixed one (fixed rate receiver swap). – See Liability Swap. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express […]

on 2023/07/21 by alex1, []

A payment which, according to special circumstances, must be made in addition to a sum already paid. – In the case of coins and medals, the strike value. – In stock exchange trading, generally the difference between the nominal value and the higher market value of a security, expressed as a percentage of the nominal […]

on 2023/07/21 by alex1, []

In financial markets, the activities of supervisory authorities aimed at ensuring the stability of the financial system as a whole. Specifically, this includes, above all, the identification, assessment and mitigation of systemic risks. These have been shown to depend on the overall behavior of institutions and their interconnectedness, as well as on the interplay between […]

on 2023/07/21 by alex1, []

Unless otherwise defined, this refers to the delineation of supervisory powers between the Bundesanstalt für Finanzdienstleistungsaufsicht and the Deutsche Bundesbank, most recently revised as of February 1, 2008. – See Banking Supervision, European, – Cf. BaFin Annual Report 2007, p. 111 ff. (outlining the individual areas of responsibility), BaFin Annual Report 2010, p: 144 (new […]

on 2023/07/21 by alex1, []

The official reassessment of the comparative value of a currency – upwards – in relation to an underlying benchmark, such as gold, USD, Special Drawing Right or a basket of currencies. – This is always the case when the exchange rate of a currency has been above the previously determined exchange ratio for a longer […]

on 2023/07/21 by alex1, []

A letter sent by a financial services provider to potential customers announcing a telephone call (a personal call by an employee). The supervisory authority considers this procedure to be prohibited cold calling. – Cf. BaFin Annual Report 2007, p. 146 (focus tests also on this form of cold calling). – See Advance letter, relationship management, […]

on 2023/07/21 by alex1, []

Unless otherwise defined, the ratio of borrowed capital to the total capital of a company or industry calculated according to certain rules; the borrowing ratio: the percentage of total assets financed by a company’s creditors. A higher ratio shows that there is larger amount of other’s money being used in an attempt to generate profits). […]

on 2023/07/21 by alex1, []

The amount of labor required to produce a unit of output. In economic terms, it is calculated as the ratio (division result) of labor hours to gross domestic product. It is the reciprocal of labor productivity. – See capital ratio. Attention: The financial encyclopedia is protected by copyright and may only be used for private […]