on 2023/07/21 by alex1, []

Assessment of bank balance sheets carried out by the ECB as European banking supervisor on a uniform basis. This involves examining the condition of bank assets. In particular, it clarifies the extent to which the valuation of assets and collateral is appropriate and whether the related provisions are adequate. The AQR is regularly preceded by […]

on 2023/07/21 by alex1, []

The frequency and extent of monetary policy actions taken by a central bank within a given period. – See code words, forward guidance, guidance, verbal, open-mouth policy, fuzziness, constructive. – Cf. ECB Monthly Bulletin of November 2006, pp. 73 et seq. (detailed presentation with overviews, unfortunately linguistically unattractive in parts), ECB Monthly Bulletin of February […]

on 2023/07/21 by alex1, []

The supervision of financial markets by only one (national) supervisory authority. In Germany, this was accomplished on May 1, 2002, with the establishment of the Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht). – At the European level, such an authority is being discussed again and again, even though the previous form of national supervision has […]

on 2023/07/21 by alex1, []

If an analyst is also employed in other departments of an institution, there is a risk that his or her independence and neutrality will be compromised. The supervisory authority considers such a risk to exist in particular if an analyst is also employed in the area of investment banking, for example in corporate financing, issues, […]

on 2023/07/21 by alex1, []

All natural persons and legal entities who, in the exercise of their profession or in the course of their business activities, are responsible for the preparation of financial analyses or the dissemination of such analyses must notify the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht) without delay in accordance with Section 34c of the […]

on 2023/07/21 by alex1, []

Said in connection with a central bank’s reserve requirement policy. For a central bank to keep the overnight rate under control, there must be sufficient demand for deposits (credit balances) at the central bank. This demand is forcibly created through the medium of the fractional reserve. Because the demand thus created is stable and predictable, […]

on 2023/07/21 by alex1, []

In Germany, Section 20a of the German Securities Trading Act (WpHG) prohibits the provision of incorrect information about circumstances that are material to the valuation of assets. Nor may circumstances relevant to valuation be concealed if there is a corresponding legal obligation to disclose. The prohibition applies to all assets (securities, derivatives, money market instruments, […]

on 2023/07/21 by alex1, []

The payment to the owner of a ship (in a broader sense sometimes also said of other property) from a neutral state as compensation for seizure by a belligerent power. – According to the prevailing opinion in international law, such compulsory expropriations are still permitted today. Attention: The financial encyclopedia is protected by copyright and […]

on 2023/07/21 by alex1, []

With regard to the European Monetary Union, the view, often put forward but unproven because it cannot be demonstrated, that a common currency would set in motion automatic forces for economic convergence among the participating countries. Because fiscal policy and most other important policy areas remain in the national decision-making power of the participating countries, […]

on 2023/07/21 by alex1, []

As defined by the supervisory authorities, the provision of personal recommendations to a client either at the client’s request or on the initiative of the investment firm, relating to one or more transactions in financial instruments. In Germany, such service providers require a license and are subject to supervision by the Federal Financial Supervisory Authority; […]