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Sub-category of financial liabilities according to IFRS. They are distinguishable from provisions by a significantly higher degree of certainty in terms of amount or time of settlement obligation.

Advanced approach for calculating the minimum capital requirements for credit risk in accordance with the Solvency Regulation CRR/Basel III.

Method used to determine pension obligation, which takes account of future rates of increase in salaries and pensions among other factors.

Risk analysis of the assets and liabilities of funded pension plans in order to define a tailored investment strategy.

IAS 39 classification which describes financial instruments available to sell immediately.

Instrument used to manage liquidity risk. The available net liquidity is determined and monitored for both a basic scenario taking account of current market conditions as well as stress scenarios.

Advanced approach for calculating the minimal capital requirements for operational risks in accordance with the Solvency Regulation CRR/Basel III.

The AIFM-StAnpG aligns the Investment Tax Act and VAT Act with the Capital Investment Code (KAGB) that came into force in July 2013 and regulates the taxation of all investment funds covered by the KAGB. Moreover, the Act creates the necessary fiscal conditions for pension pooling in Germany and the legal basis for FATCA data exchange.

EU directive that regulates managers of alternative investment funds. It affects fund managers who are based in the EU as well as fund managers from third-party countries who want to market their funds in the EU.

Amendment of the German Stock Corporation Act in the wake of the financial market crisis. The regulations are intended to provide incentives for measures in favour of sustainable company development, for example by making it easier to cut salaries of management board members if the company’s situation deteriorates.

European regulation implementing the Basel III resolutions. In addition to existing regulations, such as the requirements for conducting banking business, the freedom of establishment and free movement of services and principles of banking supervision, the directive includes new rules on corporate governance, sanctions and the building of capital buffers.

European regulation implementing the Basel III resolutions. The CRR essentially comprises the requirements relating to capital and large exposures previously regulated in CRD III. In addition, it includes a revised definition of the capital base and higher capital ratios, new liquidity ratios, a leverage ratio and tighter rules for counterparty risk.

Risks associated with the premature termination of financial assets due to an unexpectedly high outflow of customer deposits.

Independent committee of the European banking supervisors, which advises the EU Commission, advances the implementation of the EU guidelines and contributes to the cross-border exchange of information.

Compensation fund of German banks (Entschädigungsfonds deutscher Banken, EdB)', 'Statutory compensation fund for deposit banks under private law. In addition to the EdB, there is a deposit protection fund of the Association of German Banks on a voluntary basis for private banks.

Indicates the probability that a potential loss will not exceed a specified amount.

This parameter forecasts over a 12-month period the proportion of an open credit line that will additionally be utilised at the time of default.

An OTC derivative enabling investors to participate in rising and falling prices of an underlying asset.

Bank regulatory core capital essentially comprises the paid-up capital, contributions by silent partners, general reserves, special reserve for general banking risks in accordance with Section 340g German Commercial Code (HGB) and, to a limited extent, innovative capital instruments such as hybrid capital. Also known as Tier 1 capital. The core capital ratio shows the core capital in relation to the weighted risk positions of a bank (for comdirect this applies without silent capital contributions, special reserves, innovative instruments).

Used to measure cost efficiency. The relationship between administrative expenses and earnings recorded in a financial year.

Measure of the premium or discount on a reference interest rate whose level depends on the credit rating and market positioning of the respective debtor.

Risk indicator. Unexpected, maximum, anticipated loss from credit risks, which is determined using the VaR concept (see Value-at-risk).

One of 18 sector indices which make up Deutsche Börse’s Prime Standard. Various financial service providers are listed in the index, including comdirect bank AG.

All balance sheet and off-balance sheet items of a bank that cannot be allocated to the trading book.

Bank Recovery and Resolution Directive (BRRD)', 'EU directive for the standardised recovery and resolution of credit institutions and investment firms found to be in danger of failing. It is part of the Single Resolution Mechanism (SRM).

Capital Accord published by the Basel Committee on Banking Supervision which stipulates how much equity banks require to cover risks, which methods should be used to assess risks and how risks are to be published. The Accord also defines standards for the risk management of banks and its appraisal by the banking supervisory authority.

Additional regulations published by the Basel Committee on Banking Supervision which specify new requirements regarding the capital requirements, the leverage ratio and the liquidity standards of banks. These regulations have been successively introduced since 2013.

Deferred remuneration. Under an occupational old age pension, part of an employee’s salary is invested to later be converted into pension payments.

Income taxes to be paid or received in the future, which mainly result from the different valuation bases used for the tax balance sheet and the commercial balance sheet. They do not constitute actual tax office claims or liabilities at the time the balance sheet is prepared.

The amount that with a high level of certainty covers unexpected losses from risk carrying positions. Not identical to balance sheet or regulatory capital.

Regulation governing the capital adequacy of institutions, groups of institutions and financial holding groups which came into force on 1 January 2007.

The rate at which a prime bank is willing to lend funds in euro to another prime bank. The EURIBOR is calculated daily for interbank deposits with a maturity of one week and one to 12 months as the average of the daily offer rates of a representative panel of prime banks, rounded to three decimal places.

Open-ended securities enabling investors to invest in commodities. They are traded on the stock exchange like equities, have an unlimited term and offer a high degree of liquidity.

ETFs are traded on the stock exchange and track an index (e.g. share, bond or commodities index).

 Regulation governing the regulatory requirements for the compensation system of banks aimed at preventing incentives for excessive risk-taking.

Unscheduled write-down in the value of assets as a result of an anticipated decrease in value.

Often start-up companies that develop modern technologies in the area of financial services but do not have a banking licence.

Accounting for hedging relationships between hedged items (e.g. fixed income securities) and derivative financial instruments used for hedging purposes (e.g. interest rate swaps), in order to minimise the effects of changes in value in the income statement.

Acronym for the five euro countries Greece, Ireland, Italy, Portugal and Spain.

Key element of the second pillar of Basel II regulated by Section 25a German Banking Act (KWG) in conjunction with the minimum requirements for risk management (MaRisk). ICAAP comprises all procedures to identify and measure the relevant banking risks and their appropriate backing with internal capital.

Upper ratings categories of a rating scale, e.g. at Moody’s ratings Aaa to Baa.

Ratio within the framework of Basel III which limits the banks’ level of indebtedness and stipulates that the ratio of Tier I capital to total lending may not fall below 3%.

New liquidity ratio in Basel III which describes the short-term liquidity risk profile of the banks. In future, the bank must maintain a minimum portfolio of highly liquid assets to safeguard their liquidity requirement in stress situations for at least 30 days.

Uniform European procedure for the resolution of credit institutions comprising a Single Resolution Board (SRB) and a Single Resolution Fund (SRF).

EU regulation on the harmonisation of financial markets in the European market, improving competitiveness and providing protection for investors in financial instruments.

These include, in particular, setting up a proper business organisation (e.g. function separation of sales and back office) and implementing a system of appropriate internal controls for the trading and lending divisions.

Multi-layered software infrastructure in which the software components are shared between several systems.

Ratio in Basel III which describes the ratio of the available amount of stable funding to the required amount of stable funding.

The market value changes in securities and participations are shown in the revaluation reserves with an income-neutral effect. The figures shown in the balance sheet net of deferred taxes.

The owner of a warrant is entitled (but not obliged) to buy (call option) or sell (put option) a certain number of shares or other securities at a stipulated price within a certain period of time.

Individualised ebase collective custody account with open fund spectrum and SWIFT connection.

Sub-segment of the Regulated Market with additional admission requirements compared with the General Standard. Prime Standard companies must comply with high international transparency standards.

Optimisation of websites for various devices.

Risk-weighted positions, which have to be backed by regulatory capital. At comdirect bank, risk assets are calculated taking account of Section 10c German Banking Act (KWG) (zero weighting of intragroup receivables).

These comprise the maximum available equity, which can be used to hedge against unexpected losses.

Simulation of impact of crisis situations in the capital market on the risk and earnings position.

Lower price limit for selling (stop loss), which is automatically adjusted upwards when prices are rising, or upper price limit for buying (stop buy) which is automatically adjusted downwards when prices are falling.

The maximum loss of value of a portfolio in line with a specific probability and within a specific holding period.

Annual fee paid by an investment company to the brokers of its funds.

Identity verification via video telephony during the account opening process

Exemption of subsidiaries of a banking group from certain regulatory requirements (for example capital requirements and major loan provisions) in accordance with Section 2a of the German Banking Act (KWG).

Sale of a product under a name other than the company’s own brand name.

Contractual agreement between two parties relating to the exchange of differently structured payment flows for a specific period of time. Interest rate swaps can be used to hedge against an increase or decrease in interest rates.