List of acronyms associated with the eurozone crisis
This is a list of acronyms and initialisms associated with the eurozone crisis.
A
- assets that are usually small, illiquid and unable to be sold individually - hence the process of securitization.
- ANFA (Agreement on Net Financial Assets): confidential agreement between ECB and national central banks concerning the purchase of sovereign debt (financial assets) by the central banks, such as the purchase of Greek debt paper, for the banks' own account - as opposed to SMP programs in which ECB or the central banks are operating within the Eurosystem.[1]
- legislation enacting net-deficit spending measures voted by the U.S. Congress and signed into law by President Barack Obama, in February 2009, often compared with stimulus measures undertaken by Eurozone member-states.[2][3]
B
- stress testing, and liquidityrequirements. See CET1.
- Brexit or Brixit (British exit): term initially introduced in 2012 in world business trading, referring to the possibility that the United Kingdom could leave the European Union. Following the 2016 referendum, Britain exited from the European Union at 23:00 GMT on 31 January 2020, and, from then on, the term denotes a real event.
C
- CAC 1. exchange rates.
- .
- underlyingassets.
- CDS (Credit default swap): financial agreement whereby one side (the seller of the CDS) agrees to compensate the other side (the CDS buyer) in the event of a loan default or other credit event. The buyer makes a series of payments (called "fee" or "spread") to the seller and, in exchange, receives a payoff if the loan defaults. An LCDS (Loan-only credit default swap) is a CDS whose underlying security is strictly a syndicated, secured loan, and never a bond.
- CEBS (Committee of European Banking Supervisors): former independent advisory committee of the European Union (EU), tasked with banking supervision within the EU. Predecessor of the European Banking Authority (EBA).
- CET1 (Common Equity Tier 1): percentage of bank capital that B III standards require banks to fund with RWAs (risk-weighted assets) composed of shareholders' equity, including audited profits, goodwill, and other intangible assets - less accounting reserves that are not loss absorbing. Currently, and since 2015, it stands at 4.5%.
- financial intermediaries and macroeconomics.
- EU institutions.
- CRAR: See CAR.
D
- DSA (Debt sustainability analysis): IMF's analysis of a country's capacity to finance its policy objectives and service the ensuing debt without unduly large adjustments, conducted through a formal framework that became operational in 2002.
- microeconomic principles. The European Central Bank (ECB) uses a DSGE model (the Smets-Wouters model) to analyze the economy of the Eurozoneas a whole.
E
- stress testson European banks to identify weaknesses in banks' capital structures. It is part of the European System of Financial Supervision (ESFS).
- EBF (European Banking Federation): organisation, currently numbering around five thousand members, representing the interests of European banks in the European Union.
- redundant acronym for Ireland's largest building society, rescued in 2010 from bankruptcy by the government's emergency injection of capital, amidst the Post-2008 Irish banking crisis.
- banknotes.
- ECJ (European Court of Justice): the highest court in the European Union (EU) in matters of European Union law.
- Economics and Finance Ministers of all European Unionmember-states.
- ECON (Committee on Economic and Monetary Affairs): committee of the European Parliament, overseeing the actions of the European Central Bank(ECB).
- EFTA, except for Switzerland.
- EFC 1. deficits and issues related to the euro.
- European sovereign-debt crisis.
- EFSM (European Financial Stabilisation Mechanism): emergency funding programme reliant upon funds raised on the financial markets and guaranteed by the European Commission using the budget of the European Union as collateral.
- EFTA (European Free Trade Association): an association, established in 1960, of originally seven (Greek: εφτά, eftá: seven) and currently four European countries (Liechtenstein, Iceland, Norway, and Switzerland), which operates in parallel and is linked to the European Union (EU).
- European System of Financial Supervisors(ESFS).
- ELA (Emergency Liquidity Assistance): injections of liquidity to European private and central banks by the European Central Bank (ECB).
- .
- weighted average of all overnight unsecured lending transactions in the interbank market and calculated by the European Central Bank (ECB). (See also Euribor; see U.S. Federal Reserve overnight interest rate).
- Economic and Monetary Unionand the introduction of the euro.
- ESA or ESA95 (European system of national and regional accounts): the European system of collecting comparable, up-to-date and reliable information on the economy of the European Union's member states. It is broadly consistent with the System of National Accounts of the United Nations.
- ESCB (European System of Central Banks): comprises the European Central Bank (ECB) and the national central banks (NCBs) of all European Union (EU) member-states. The Eurosystem, and not ESCB, is the responsible authority on all issues concerning the European common currency (€).
- ESFS (European System of Financial Supervisors): the institutional architecture of the EU financial supervision, created in response to the financial crisis. It comprises the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA), and the European Securities and Markets Authority(ESMA).
- Portugal and Greece.
- ESMA (European Securities and Markets Authority): financial regulatory institution of the European Union, whose task is to improve the functioning of financial markets in Europe and strengthen investor protection. It is part of the European System of Financial Supervision (ESFS).
- ESRB (European Systemic Risk Board) : agency tasked with the macro-prudential oversight of the financial system within the European Union. It is under the responsibility of the European Central Bank (ECB).
- EU (European Union): the economic and political union or confederation of 28 European member-states.
- US dollar-denominated instruments. (See also Eonia.)
- non-governmental organisationsthat research issues related to debt, development finance and poverty reduction.
- .
- Eurogroup Working Group or Euroworking Group: preparatory body composed of representatives of the Eurozone member states of ECOFIN, the European Commission and the European Central Bank, which provides assistance to the Eurogroup and the Eurogroup's President in preparing ministers' discussions.
- EFTAcountries.
- Eurosystem: the monetary authority of the Eurozone, consisting of the European Central Bank (ECB) and the central banks of the member states that belong to the Eurozone. The function of the Eurosystem is to apply the monetary policy decided by the ECB. See also ESCB.
- monetary union of 19 European Union (EU) member states that have adopted the Euro (€) as their common currency and sole legal tender.
F
- intergovernmental organization founded in 1989 on the initiative of the G7 to develop policies to combat money laundering; intensified European money laundering investigations during the crisis.[4]
- crisis.
- FST (Fiscal Stability Treaty): see EFC, def. #1.
G
- GAFI: See FATF.
- GDP (Gross domestic product): the market value of all goods and services produced within a country in a given period, usually one year. (See also GNP)
- GFC(Global financial crisis): term denoting the financial crisis of 2007–2008.
- GNP(Gross National Product): the market value of all goods and services produced by the residents of a country in a given period, usually one year. (See also GDP)
- .
I
- IFO (German: Institut für Wirtschaftsforschung - Institute for Economic Research): independent, influential German think tank, now part of the CESifo Group.
- IIF (Institute of International Finance ): global association of financial institutions created by banks of leading industrialised countries in response to the international debt crisis of the early 1980s, which has had a prominent role in the European debt crisis environment.
- IIP: see NIIP
- IMF (International Monetary Fund): international organization, created in 1944, having as objective to stabilize exchange rates and assist in the reconstruction of the world's international payment system, whenever necessary.
- ISDA (International Swaps and Derivatives Association): trade organization of participants in the market for over-the-counter derivatives. Most credit default swaps (CDSs) use standard forms promulgated by ISDA, although some are tailored to meet specific needs. On March 2012, ISDA, by declaring that Greece had instigated a credit event, triggered payment on default insurance contracts.
L
- LCDS: See CDS.
- US dollar-denominated instruments, just as Euribors are used as a reference rate for Euro-denominated instruments. (See also Libor scandal.)
- LLR (Lender of last resort): term denoting an institution willing to extend credit when no one else will. In the Eurozone, the lender of last resort for banks is the European Central Bank (ECB).
- LTRO (Long-term refinancing operation): ECB programme of low-interest loans to European banks but not to European states, accepting loans from the portfolio of the banks as collateral.
M
- sixpack legislation, designed to prevent and correct ostensibly risky macroeconomic developments, such as high current-account deficits, unsustainable external indebtedness and housing bubbles.
- Committee of Ministers, having the task of monitoring the status and implementation of anti-money launderingmeasures in Europe.
N
- NAMA (National Asset Management Agency): institution created by the Government of Ireland, in late 2009, in response to the Irish financial crisis and the deflation of the Irish property bubble. It functions as a bad bank, acquiring property development loans from Irish banks in return for government bonds, primarily with a view to improving the availability of credit in the Irish economy.
- NCB (National central bank): the institution that manages a nation's currency, money supply, and interest rates. The NCBs of Eurozone's member-states have ceded to the European Central Bank most rights for major central-bank operations.
- NIIP (Net international investment position); also, sometimes, NIP : the difference between a country's external financial assets and its external financial liabilities. A country's IIP (international investment position) is the financial statement setting out the value and composition of that country's external financial assets & liabilities.
- NPM(New public management): government policies that aim to modernise and render more effective the public sector. Part of IMF and ECB recommendations to Eurozone countries.
- NTMA (National Treasury Management Agency): government agency, established in 1990, which manages the assets and liabilities of the Government of Ireland, borrows for the exchequer, and manages the national debt.
O
- OMT (Outright Monetary Transactions): ECB's purchases ("outright transactions") in sovereign-bond secondary markets, within the Eurosystem, and also, under certain conditions, of bonds issued by Eurozone member-states. OMT replaces the bank's Securities Markets Programme (SMP).
- OSI: See PSI.
P
- covid-19. The programme was terminated on 31 March 2022.[7]
- PIGS (Portugal, Italy, Greece and Spain); also, since 2008, PIIGS (Portugal, Italy, Ireland, Greece and Spain): pejorative term denoting Eurozone's troubled economies.
- PSI (Private sector involvement): participation of private creditors in sovereign-debt restructuring deals. The participation of state sectors is denoted as OSI (official sector involvement).
S
- SDR (Special drawing rights): supplementary foreign-exchange reserve assets maintained by the International Monetary Fund (IMF), which represent a claim to currency held by IMF member-countries for which they may be exchanged. An SDR functions as the unit of account for the IMF.
- Economic and Monetary Union. In order for member-states to join the Eurozone, they would have to abide by the criteria for public finances which the Maastricht Treatydefined, such as member-states having (a) an annual budget deficit no greater than 3% of GDP, and (b) a national debt no greater than 60% of GDP.
- SMP: See OMT.
- SONIA (Sterling OverNight Index Average): reference rate for transactions in the British Sterling market, calculated as the weighted average rate of all unsecured overnight sterling transactions brokered in London by members of The Wholesale Markets Brokers' Association.
- SPE (Special purpose entity); also SPV (Special purpose vehicle): legal entity created to fulfill narrow, specific and/or temporary objectives. Usually a limited company of some type or a limited partnership.
- SPV : See SPE.
- Single Supervisory Mechanism. SRM covers all banks established in the Eurozone.
- SSM (Single Supervisory Mechanism): synonym of European Banking Supervision.
- S&P (Standard & Poor's): American financial services company and one of the biggest credit-rating agenciesin the world.
T
- TARGET (Trans-European, Automated, Real-time, Gross Settlement, Express Transfer system): interbank payment system for the real-time processing of cross-border money transfers throughout the European Union.
- TARGET2: the current, 2nd generation of TARGET, in place since November 2007.
- TEU (Treaty on European Union), also known as the Maastricht Treaty: it created in 1992 the three-pillars structure of the EU and led to the creation of the single European currency.
- TSCG(Treaty on Stability, Coordination and Governance in the Economic and Monetary Union). Same as the FST (Fiscal Stability Treaty).
See also
References
- ^ "Greece Déjà Vu All Over Again?" by Jeffrey Anderson & Jessica Stallings, Institute of International Finance, 27 November 2013
- Goethe University, Frankfurt, 5 September 2009
- ^ "US fiscal stimulus worked – more evidence" by Bill Mitchell, 28 February 2011
- ^ "Zyperns Geldwäsche und die EU-Richtlinie" ("Cyprus money-laundering and the EU directive"), EurActiv website, 7 March 2014 (in German)
- ^ Bank, European Central (22 January 2016). "How does the ECB's asset purchase programme work?". ECB. Retrieved 6 June 2022.
- ^ Bank, European Central (18 March 2020). "ECB announces €750 billion Pandemic Emergency Purchase Programme (PEPP)". ECB. Retrieved 6 June 2022.
- ^ Bank, European Central (16 December 2021). "Pandemic emergency purchase programme (PEPP)". ECB. Retrieved 16 December 2021.