All glossary entries

A.B.C.D.E.F.G.H.I.J.K.L.M.N.O.P.Q.R.S.T.U.V.W.X.Y.Z
All glossary entries . ECB . Statistics . Monetary policy . Payments & markets

A
acceptance
This term has two meanings. 1) In the field of transfer systems, it refers to the inclusion of a transfer order
for funds or securities in a systems operations for further processing, potentially following various checks
(e.g. regarding technical standards or the availability of funds), as specified in the rules of the system. 2) In
the field of cards, it refers to the process whereby a particular brand of card is accepted by a terminal,
merchant or other entity.
acceptor
A merchant or other entity that accepts a payment instrument presented by a client in order to transfer funds
to that merchant or other entity.
accession criteria
See Copenhagen criteria (accession criteria)
accountability
The legal and political obligation of an independent institution to properly explain and justify its decisions to
the citizens and their elected representatives, thereby making it responsible for fulfilling its objectives. The
ECB is accountable to the European citizens and, more formally, to the European Parliament.
ACH
See automated clearing house (ACH)
acquirer (card acquirer)
In point-of-sale (POS) transactions, the entity (usually a credit institution) to which the acceptor (usually a
merchant) transmits the information necessary in order to process the card payment. In automated teller
machine (ATM) transactions, the entity (usually a credit institution) which makes banknotes available to the
cardholder (whether directly or via the use of third-party providers).
actual/360
The day-count convention applied for the calculation of interest on a credit, implying that the interest is
calculated over the actual number of calendar days over which the credit is extended, on the basis of a 360day year. This day-count convention is applied in Eurosystem monetary policy operations. See also daycount convention
advisory netting
See position netting (advisory netting)
agency relationship
A contractual relationship whereby one party (the agent) acts on behalf of another (the principal).
aggregated balance sheet of the MFI sector
See aggregated MFI balance sheet
aggregated MFI balance sheet
A balance sheet comprising the sums total of the data included in the harmonised balance sheets of all MFIs
that are resident in the euro area (inter-MFI positions on a gross basis). The legal basis for the collection of
harmonised balance sheet statistics is laid down in Regulation ECB/2008/32. This Regulation is
complemented by Guideline ECB/2007/9, which sets out the procedures to be followed by NCBs when
reporting information relating to money and banking statistics to the ECB.

American auction
See multiple rate auction (American auction)
amortisation
The systematic reduction in the accounts of the value of assets over a period of time or of the value of a
premium/discount.
ancillary system
A system in which payments or securities are exchanged and/or cleared. Meanwhile, the ensuing monetary
obligations are settled in another system, typically an RTGS system. See also real-time gross settlement
(RTGS) system
ASLP
See automated security lending programme (ASLP)
asset
A resource controlled by an enterprise as a result of past events and from which future economic benefits
are expected to flow to the enterprise.
asset servicing
Administration services provided by a central securities depository (CSD) or custodian in connection with the
custody and/or safekeeping of financial instruments (e.g. the processing of corporate events or the handling
of taxes).
ATM
See automated teller machine (ATM)
authentication
A security mechanism for verifying: 1) the identity of an individual or other entity (including verification by
means of a computer or computer application); and 2) the level of authority of that person or entity (i.e. the
ability of that person or entity to perform specific tasks or activities).
authorisation
The consent given by a participant (or a third party acting on behalf of that participant) in order to transfer
funds or securities.
auto-collateralisation
A credit operation that is or can be triggered when a buyer does not have sufficient funds to settle a
securities transaction in order to improve its cash position for the next settlement cycle. The credit provided
can be secured using securities already held by the buyer (collateral stocks) or the securities that are being
purchased (collateral flows).
automated clearing house (ACH)
An electronic clearing system in which payment orders are exchanged among participants (primarily via
electronic media) and handled by a data-processing centre. See also clearing
clearing house
automated security lending programme (ASLP)
A financial operation combining repo and reverse repo transactions where specific collateral is lent against
general collateral. As a result of these lending and borrowing transactions, income is generated through the
different repo rates of the two transactions (i.e. the margin received). The operation may be conducted
under a principal-based programme, i.e. the bank offering this programme is considered the final
counterparty, or under an agency-based programme, i.e. the bank offering this programme acts only as
agent, and the final counterparty is the institution with which the security lending transactions are effectively
conducted.
automated teller machine (ATM)

An electromechanical device that allows authorised users, typically using machine-readable plastic cards, to
withdraw cash from their accounts and/or access other services (allowing them, for example, to make
balance enquiries, transfer funds or deposit money). See also cash dispenser
automatic linking
A process whereby trading members may automatically link buy and sell trades by marking the respective
securities trades. See also linked trade
autonomous liquidity factors
Liquidity factors that do not normally stem from the use of monetary policy instruments. They include, for
example, banknotes in circulation, government deposits with the central bank and net foreign assets of the
central bank.
average cost
The continued (or weighted) average method, by which the cost of every purchase is added to the existing
book value to produce a new weighted average cost.
averaging provision
A provision allowing counterparties to fulfil their reserve requirements on the basis of their average reserve
holdings over the maintenance period. The averaging provision contributes to the stabilisation of money
market interest rates by giving institutions an incentive to smooth the effects of temporary liquidity
fluctuations. The Eurosystem's minimum reserve system allows for averaging.