European Investment Bank

Summary of European Investment Bank

A multilateral development bank established in 1958 by the Treaty of Rome for the purpose of assisting in the balanced growth of the European economic community (read this and related legal terms for further details) (EEC). The bank grants long-term loans […]

Special Drawing Rights

Summary of Special Drawing Rights

An artificial currency unit created by the international monetary Fund (read this and related legal terms for further details), or IMF, to argument international reserves. The expansion of world trade following World War II necessitated an expansion in […]

Bank For International Settlements

Bank For International Settlements Summary of Bank For International Settlements An international bank owned and controlled by the central banks of twenty-four European and five non-European central banks. The BIS was formed at the Hague Conference of 1930 in response to pressures for the […]

Exchange Control

The system by which a government regulates possession of and dealings in foreign exchange. The principal objective of exchange control is to allocate foreign exchange to necessary imports and expenditures. Normally, the finance ministry or central bank is invested with the authority to issue […]

Reserve Currency

Summary of Reserve Currency

The currency of a major trading national, widely accepted in international transactions and regarded as stable, that is held by the central banks or monetary authorities of other nations as a form of collateral for their own currency. The use of reserve […]


An arrangement in which an insurance underwriter contractually spreads its policy risks with other underwriters, sharing the premium with them. For example, an underwriter may issue a policy for fifty million dollars to cover the loss of a ship; being unwilling to assume the full risk of loss, […]

Gold Exchange Standard

A condition in which a nation maintains its reserves in a currency convertible into gold rather than in the metal itself. Since August 15, 1971, the U.S. dollar has not been freely convertible into gold by foreign central banks; it therefore does not qualify as a reserve currency for a nation on a g…


In insurance industry usage, funds set aside to satisfy claims which have arisen but not yet paid. Such reserves fall into two categories: (11 Those arising from claims made upon the insurer but not yet actually paid; and (2) claims which have been incurred but not yet reported. In the latter case, …

Risk Management

Summary of Risk Management

The application of management techniques to identify, quantify, and respond to threats of loss or damage to a firm's assets. Such threats may arise from random events such as fire, explosion, theft, and acts of nature, or from the conscious efforts of external […]

Bretton Woods Agreement

The product of an international conference on monetary and economic affairs held at the end of World War II, from which resulted the International Monetary Fund and the World Bank; the term is used most commonly in reference to a program for world monetary affairs that emerged from the conference an…

Central Bank

The principal monetary authority of a nation. In most commercially developed nations the central bank issues the currency and acts as banker for the government and the nation's commercial banks. By setting the rate at which it will lend money to commercial banks, the central bank […]

European Monetary System

Summary of European Monetary System

A mechanism established by the European Communities to mitigate exchange rate fluctuations among the members and establish a zone of "monetary stability in Europe."The EMS is, in part, a fulfillment of the 1970 Werner Report (read this and […]

Balance of Payments

Balance Of Payments Summary of Balance Of Payments

The sum owed to or by a nation as the result of its international transactions during a given time period, usually one year. The balance of payments is calculated by subtracting the nation's total payments to foreigners from total […]

Accommodation Line

Summary of Accommodation Line

The acceptance by an insurance company of substandard risks as an accommodation to a particular broker who has previously provided, and is expected to continue to provide, attractive underwriting business.

(Main Author: William J. Miller)

Description […]


Summary of Antedate

The act of dating a bill of exchange or other instrument with a date earlier than the date of execution. For example, a draft dated December 1, but actually drawn on December 5, would be antedated. Antedating has no effect upon the negotiability of an instrument.

(Main […]


Summary of Beneficiary

The party named in a letter of credit as authorized to draw bills of exchange for acceptance by the issuing bank.

(Main Author: William J. Miller)

Spanish Translation of beneficiary This is the legal translation of English to Spanish in relation to […]


Summary of Adventure

In marine insurance, any maritime enterprise. The term is most commonly used to denote the risks undertaken by a vessel and her cargo in the course of transiting the seas.

(Main Author: William J. Miller)

Description of Adventure Resources See Also Joint […]


Hello Summary of Advice

Also known as advice of fate, a document issued by a commercial bank to acknowledge receipt of funds or instruments from a third party or to confirm performance of previous instructions. For example, a bank would send an advice to a customer confirming the receipt of […]

Retirement Planning

Retirement Planning Contents of Retirement Planning Contents of this subject matter include: Overview of the financial services industry Types of superannuation funds Regulatory control of superannuation funds Contributions to funds Taxation of funds Payments from superannuation funds Self […]

Finance Law

Contents of Finance Law Contents of this subject matter include: Introduction to secured finance The securities legislation in a number of jurisdictions Considerations in taking security Loan syndications Trading loan assets Alternatives to secured finance Asset finance Acquisition finance […]


Summary of Binder

A temporary, often abbreviated document evidencing that insurance coverage has been effected. A binder is an interim measure until the full policy is prepared.

(Main Author: William J. Miller)

Binder in International Trade Meaning of Binder, according to the […]


Summary of Aggregate

The maximum exposure borne by an insured party under a contract of insurance during a given time period, usually one year. If, for example, a policy provides for a deductible of $ 1,000 per occurrence with an aggregate of $5,000, then once the insured party has paid out […]

Structural Adjustment Lending

World Bank program designed to assist developing nations with balance of payments problems resulting from correctable internal economic patterns. The program provides hard currency loans conditional upon agreement by the beneficiary country to undertake certain specified corrective measures, […]

Commercial Risk

The risk borne by an exporter that his foreign customer may be unable to pay for merchandise imported under open account terms. Commercial risk is contrasted with political risks, which arise from governmental actions and are unrelated to the financial condition or credit-wor- thiness of the […]