on 2023/07/21 by alex1, []

Generally, a claim to a fraction of an asset. – In national accounts, a liability item, namely securities issued by domestic enterprises and held by foreigners. – See share, security. – Cf. Monthly Report of the Deutsche Bundesbank of January 2008, p. 34 f. (Shares as an item in the balance sheet). Attention: The financial […]

on 2023/07/21 by alex1, []

Instructions on how a central bank should formulate its monetary policy, issued by – clueless laymen, mostly self-styled financial journalists and silly assembly-line writers in relevant Internet forums, and – by far worse – complacent professors. Corresponding rules are often (and by whom!) cast in a catchy formula or easily understandable equation. In a sometimes […]

on 2023/07/21 by alex1, []

Paper money put into circulation in France in 1789, the year of the Revolution; it was supposed to be covered by the sale of the church’s expropriated properties or to certify claims to them. – The purchasing power of the assignats was reduced by reckless reissuance (from the original 400 million to 12 billion livres) […]

on 2023/07/21 by alex1, []

In financial markets, the activity of supervisory authorities aimed primarily at ensuring a level playing field for banks and protecting customers from unfair practices. – However, the task of microprudential supervision cannot and must not be to assess the intrinsically valuable and economically desirable (most productive) use of institutions‘ loans. This has been demanded several […]

on 2023/07/21 by alex1, []

Discussions between the associations of companies operating in the financial market and the supervisory authority to exchange ideas. The purpose (practical effect) of the meetings is primarily to coordinate planned projects of the banks with the supervisory authority in advance. In recent years, such meetings have become increasingly important in the interaction between the players […]

on 2023/07/21 by alex1, []

Bodies established within the framework of European banking supervision comprising the ECB and national supervisory authorities with the aim of drawing up and applying uniform supervisory rules. – Cf. Deutsche Bundesbank Monthly Report of October 2014, pp. 52 ff. (tasks, organization and functioning of the JSTs). Attention: The financial encyclopedia is protected by copyright and […]

on 2023/07/21 by alex1, []

Global investor demand is directed toward securities denominated in a particular currency, the conservation of value and purchasing power of which is trusted. As a result, the currency in question becomes expensive and the country concerned suffers price competitiveness disadvantages. – Prior to the entry into the European Monetary Union in 1999, periods of dollar […]

on 2023/07/21 by alex1, []

A bond that is repaid in equal fixed annual installments after a contractually defined grace period. These installments are structured in such a way that they each comprise a decreasing interest portion and an increasing redemption portion. In the final year of the term, the bond is then repaid in full with the payment of […]

on 2023/07/21 by alex1, []

If certain measures are taken on financial markets in one country, market participants expect that other (neighboring; economically closely related to the country) countries will soon take the same or similar precautions. They therefore react accordingly. – See Animal Spirits, Financial Psychology, Fear Thesis, Payday Rule of Thumb. Attention: The financial encyclopedia is protected by […]

on 2023/07/21 by alex1, []

The omission of information from a survey; the respondent leaves the relevant question unanswered. This also has significance for statistical surveys of the central bank. An attempt must be made to find the denied information from other statements made by the respondent; this is referred to as imputation (imputation: a process to determine and assign […]