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Kreditwesengesetz
The German Banking Act Kreditwesengesetz (KWG) literally means ''law of the banking system'', is the primary legally implementation of the Basel Accords. It is binding for banks and other institutes providing financial services (German: '' :de:Kreditinstitute und :de:Finanzdienstleistungsinstitute'') in Germany and effective since January 1935, but updated in 1962. Purpose The main goals of the KWG are: * To guarantee and safeguard the functionality of banks (literally in German: ''Sicherung und Erhaltung der Funktionsfähigkeit der Kreditwirtschaft'') * To safeguard the creditors from losing their invested capital, i.e. any kind of share (literally in German: ''Schutz der Gläubiger von Kreditinstituten vor Verlust ihrer Einlagen'') The Kreditwesengesetz imposes restriction on risk-related business activities and extends the duty of disclosure. It ensures competences of regulators and is the legal justification of the German Solvability Directive (SolvV) and MaRisk, the corr ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
SolvV
SolvV is short for ''Solvabilitätsverordnung'' which means solvability directive in German, i.e. the delegated legislation of §§ 10 ff of the Kreditwesengesetz and in effect since 2006. The long name in German is ''Verordnung über die angemessene Eigenmittelausstattung von Instituten, Institutsgruppen und Finanzholding-Gruppen'', literally "directive on the appropriate setting of equity for (financial) institutes, groups of institutes and financial holding groups". There is an analogous directive with the same name in Austria. See also * Basel Accords as basis for the Kreditwesengesetz * MaRisk, minimum requirements for risk management in Germany * Sarbanes–Oxley Act The Sarbanes–Oxley Act of 2002 is a United States federal law that mandates certain practices in financial record keeping and reporting for corporations. The act, (), also known as the "Public Company Accounting Reform and Investor Protecti ... on similar topics legally binding within the US External r ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
MaRisk
MaRisk is an acronym referring to the minimum requirements for risk management (German: '), a circular by the German Federal Financial Supervisory Authority (', BaFin) providing concepts for risk management of banks, insurances and other companies financially trading in Germany. The primary legal background for MaRisk is the Kreditwesengesetz (KWG), the secondary legal background is the '' Solvabilitätsverordnung SolvV''. MaRisk implements the qualitative requirements of Basel II and Basel III into German law. Strictly speaking, MaRisk is not a law, but a ''norm-interpreting administrative regulation'' (German: ), nevertheless it is de facto binding for all financial institutes and insurance companies with business in Germany. Details One core principle of MaRisk is that the risk control department has to be set up to be organisationally independent from those departments performing business transactions. This separation should prevail throughout the organisation up to and in ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Banking System
A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital markets. Because banks play an important role in financial stability and the economy of a country, most jurisdictions exercise a high degree of regulation over banks. Most countries have institutionalized a system known as fractional reserve banking, under which banks hold liquid assets equal to only a portion of their current liabilities. In addition to other regulations intended to ensure liquidity, banks are generally subject to minimum capital requirements based on an international set of capital standards, the Basel Accords. Banking in its modern sense evolved in the fourteenth century in the prosperous cities of Renaissance Italy but in many ways functioned as a continuation of ideas and concepts of credit and lending that had their roots in t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Basel Accords
The Basel Accords refer to the banking supervision accords (recommendations on banking regulations) issued by the Basel Committee on Banking Supervision (BCBS). Basel I was developed through deliberations among central bankers from major countries. In 1988, the Basel Committee published a set of minimum capital requirements for banks. This is also known as the 1988 Basel Accord, and was enforced by law in the Group of Ten (G-10) countries in 1992. A new set of rules known as Basel II was developed and published in 2004 to supersede the Basel I accords. Basel III was a set of enhancements to in response to the financial crisis of 2007–2008. It does not supersede either Basel I or II but focuses on reforms to the Basel II framework to address specific issues, including related to the risk of a bank run. The Basel Accords have been integrated into the consolidated Basel Framework, which comprises all of the current and forthcoming standards of the Basel Committee on Banking Superv ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Creditor
A creditor or lender is a party (e.g., person, organization, company, or government) that has a claim on the services of a second party. It is a person or institution to whom money is owed. The first party, in general, has provided some property or service to the second party under the assumption (usually enforced by contract) that the second party will return an equivalent property and service. The second party is frequently called a debtor or borrower. The first party is called the creditor, which is the lender of property, service, or money. Creditors can be broadly divided into two categories: secured and unsecured. *A secured creditor has a security or charge over some or all of the debtor's assets, to provide reassurance (thus to ''secure'' him) of ultimate repayment of the debt owed to him. This could be by way of, for example, a mortgage, where the property represents the security. *An unsecured creditor does not have a charge over the debtor's assets. The term creditor ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Invested Capital
Net operating assets (NOA) are a business's operating assets minus its operating liabilities. NOA is calculated by reformatting the balance sheet so that operating activities are separated from financing activities. This is done so that the operating performance of the business can be isolated and valued independently of the financing performance. Management is usually not responsible for creating value through financing activities unless the company is in the finance industry, therefore reformatting the balance sheet allows investors to value just the operating activities and hence get a more accurate valuation of the company. One school of thought is that there is no such security as an operating liability. All liabilities are a form of invested capital, and are discretionary, so the concept of net operating assets has no basis because operating assets are not discretionary. NOA are mathematically equivalent to the invested capital (IC), which represents the funds invested into t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Share (finance)
In finance, financial markets, a share is a unit of Equity (finance), equity ownership in the capital stock of a corporation, and can refer to units of mutual funds, limited partnerships, and real estate investment trusts. Share capital refers to all of the shares of an enterprise. The owner of shares in a company is a shareholder (or stockholder) of the corporation. A share is an indivisible unit of capital, expressing the ownership relationship between the company and the shareholder. The denominated value of a share is its face value, and the total of the face value of issued shares represent the capital of a company, which may not reflect the market value of those shares. The income received from the ownership of shares is a dividend. There are different types of shares such as equity shares, preference shares, deferred shares, redeemable shares, bonus shares, right shares, and employee stock option plan shares. Valuation Shares are valued according to the various principle ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Sarbanes–Oxley Act
The Sarbanes–Oxley Act of 2002 is a United States federal law that mandates certain practices in financial record keeping and reporting for corporations. The act, (), also known as the "Public Company Accounting Reform and Investor Protection Act" (in the Senate) and "Corporate and Auditing Accountability, Responsibility, and Transparency Act" (in the House) and more commonly called Sarbanes–Oxley, SOX or Sarbox, contains eleven sections that place requirements on all U.S. public company boards of directors and management and public accounting firms. A number of provisions of the Act also apply to privately held companies, such as the willful destruction of evidence to impede a federal investigation. The law was enacted as a reaction to a number of major corporate and accounting scandals, including Enron and WorldCom. The sections of the bill cover responsibilities of a public corporation's board of directors, add criminal penalties for certain misconduct, and require t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
1935 In Law
Events January * January 7 – Italian premier Benito Mussolini and French Foreign Minister Pierre Laval conclude Franco-Italian Agreement of 1935, an agreement, in which each power agrees not to oppose the other's colonial claims. * January 12 – Amelia Earhart becomes the first person to successfully complete a solo flight from Hawaii to California, a distance of 2,408 miles. * January 13 – A plebiscite in the Saar (League of Nations), Territory of the Saar Basin shows that 90.3% of those voting wish to join Germany. * January 24 – The first canned beer is sold in Richmond, Virginia, United States, by Gottfried Krueger Brewing Company. February * February 6 – Parker Brothers begins selling the board game Monopoly (game), Monopoly in the United States. * February 13 – Richard Hauptmann is convicted and sentenced to death for the kidnapping and murder of Charles Lindbergh Jr. in the United States. * February 15 – The discovery and clinical development of ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
