Banking Terms Based on the word / phrase from letter E (Part IV / End)

Banking Terms Based on the word / phrase from letter E (Part IV / End) :
Eurosystem.

Which consists of the European Central Bank (ECB) and national central banks of Member States whose currency is the Euro, is the monetary authorities of the Euro area. The main objective of the Eurosystem is to maintain price stability with the goods (common goods). Eurosystem acts as a leading financial authority (leading financial authority) which aims to secure financial stability and develop the European financial integration.
Strategic objectives of the Eurosystem:
1. Recognition as a monetary authority and financial matters.
Built on a solid constitution, independence and strong internal cohesion, the Eurosystem, the central banking system of the euro area, will act as the monetary authority of the Euro area and as a leading financial authority, which was recorded and recognized both inside and outside Europe. In achieving its main objectives, namely to maintain price stability, Eurosystem will conduct economic analysis and monetary policies and implementing appropriate policies. Will effectively respond to monetary and financial developments.
2. Financial stability and financial integration of Europe.
Eurosystem aims to secure financial stability and enhance European financial integration in cooperation with the existing institutional structure. In the end Eurosystem will contribute towards the provision of an architectural policy and European and global financial stability.
3. Accountability, credibility, trust, closeness to the population of Europe.
Eurosystem fully bound by the importance of credibility (credibility), faith (trust), transparency, and accountability (accountability). Aims for effective communication with the European population and the media. Committed to conduct relations with European and national authorities in full accordance with the Treaty provisions and to respect the principles of freedom. For this purpose the Eurosystem will keep abreast of changes in financial markets and financial markets (money and financial markets) and will be sensitive to public interests and the interests of the market.
4. Shared identity, clarity of roles and responsibilities as well as 'good governance'
Eurosystem aims to strengthen a common identity within a framework that defines roles and responsibilities of the participants clearly. For this purpose the Eurosystem will be built based on the potential and deep involvement of all members as a commitment and willingness to work in accordance with the agreement. Further Eurosystem committed to 'good governance' and the implementation of the organizational structure and working methods of effective and efficient. (2). (Source: EU Website)

Exchange rate risk.

Is the possibility of exchange rate fluctuations that cause harm to the asset or liability that the nomination by the foreign exchange. (9). (Source: Bank Indonesia).

Ex - Dividend.


Is a period or interval of time between the date of receiving the dividend rights record (record date) and the dividend payment date (payment date) in which investors buy shares in this period did not have the right to obtain dividends. (2). (Source: NN).

Expected Loss (EL).

Is the estimated loss or the expected losses in case of 'default' by the obligor or debtor to the facility (credit) the bank. EL basis propisi the need for the imposition of credit in the early-lending and the basis also in the backup set of problem loans (PPAP). Expected Loss is a reflection of credit risk can be calculated by various approaches.
Expected Loss is calculated based on the following formula:
EL = PD x LGD x M
where:
EL = Expected Loss
PD = Probability of Default, the estimated level of credit losses (in%) which can be calculated based on several methodologies and with due regard to the type / nature of the credit).
LGD = Loss Given Default, which experienced credit exposure at default which can also be calculated with different methodologies.
M = Maturity, the term of maturity of the loan in question. (3)
→ See also: 'Economic Capital'
(Source: From various sources, including BIS)

EXW (Ex Works).

The term is usually followed by the name of the place, is a code in the International Commercial Terms (Incoterms), which means the responsibility of Seller / Seller to the Buyer / Purchaser for both the cost of export goods, transport and the risk is limited to somewhere in the customs territory of the Seller / Vendor ( such as factories, warehouses and so on).
Limits of responsibility include:
1 Conveyances arranged buyer.
1. Risks and costs of switching from seller to buyer when the goods available to buyer.
2. Expenditures of the customs export (export clearance) and all costs incurred at the port of unloading is the risk and responsibility of the buyer.


Part III
Part II
Part I