on 2023/07/21 by alex1, []

The higher capital ratio required under Basel III is not only mathematically possible by increasing the numerator (an institution’s capital). Rather, a reduction in the numerator (a decrease in assets) is also possible. Such a reduction is desirable as far as risky financial instruments and proprietary trading positions are concerned. However, such a reduction would […]

on 2023/07/21 by alex1, []

Unless otherwise defined, an interest rate swap that allows reductions in the notional principal amount to be made during the term of the swap (an interest rate swap with a decreasing notional principal amount). – See cap, contingent swap, money market segments, term premium, LIBOR spread, reversal, currency swap. Attention: The financial encyclopedia is protected […]

on 2023/07/21 by alex1, []

The possibility for a supervisory authority to order an audit of a bank’s accounts by civil servant auditors, who are also assigned to the supervisory authority if possible, in cases of suspicion. This is common practice in many countries, but not possible in Germany, as there are no civil servant auditors (yet). Attention: The financial […]

on 2023/07/21 by alex1, []

In states with a compulsory foreign exchange economy, the duty of all residents who receive foreign means of payment (also as a gift) to surrender them immediately to the appropriate authority. – See export premium, exposure quota, foreign exchange exemption procedure, foreign exchange offense, forced exchange economy, sursat fee. Attention: The financial encyclopedia is protected […]

on 2023/07/21 by alex1, []

The obligation of citizens to accept the legal tender introduced by the state in the form of coins and notes. – See cash, validation, dollarization, cryptocurrency, money ownership, money functions, money reflux, capital flight, secondary currency, parallel currency, regional money, commodity money, currency, money by halves, means of payment, central bank money, cigarette currency. Attention: […]

on 2023/07/21 by alex1, []

A committee of representatives of the relevant departments at the level of an individual bank or at the top level of the bank (Group management) that deals with the management of interest rate risk, develops relevant proposals and forwards them to the Board of Managing Directors. – See asset interest rates, actuary, investment committee, liquidity […]

on 2023/07/21 by alex1, []

The fact that in China and Europe, the gross return on investments will decline in the long term. This is because the shrinking workforce means that more capital is used, and the return on this capital thus falls. As a result, there is likely to be an automatic transfer of capital from the aging Western […]

on 2023/07/21 by alex1, []

Share certificates issued by U.S. banks and representing shares in foreign companies (negotiable instruments issued by a U.S. bank and representing the shares that it has acquired in a foreign company listed on a non-US market). In this way, foreign shares can be traded via ADRs – on U.S. stock exchanges and (which is important […]

on 2023/07/21 by alex1, []

The term is considered in English to be a neologism of the British national economist John Maynard Keynes [1883-1946] from his book „The General Theory of Employment, Interest and Money“ published in 1936). With regard to the financial market, the observation that the actions of market participants cannot always or not exclusively be explained by […]

on 2023/07/21 by alex1, []

In relation to the financial market – in a very broad sense, any input of owned or borrowed money with the aim of profit making and roughly corresponding to the term engagement. – In a narrower sense, an investment or asset, in relation to a company especially a capital asset. – See investor, portfolio. Attention: […]