(1) The monthly data feed into the published aggregated statistical data required from monetary financial institutions (MFIs) in the Union. Moreover, as MFIs, the central banks also have to provide, on a quarterly basis, more detailed information than is provided in the monthly data.

ANNEX II

GLOSSARY

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Amortisation

: the systematic reduction in the accounts of a premium or discount, or of the value of assets over a period of time.

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Appropriation

: the act of taking ownership of securities, loans or any assets which have been received by a reporting entity as collateral as a means of enforcing the original claim.

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Asset

: a resource controlled by a reporting entity as a result of past events and from which future economic benefits are expected to flow to the reporting entity.

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Automated security lending programme (ASLP)

: a programme offered by a specialised institution, e.g. a bank which arranges and handles security lending between programme participants, in the form of repo, combined repo and reverse repo or security lending transactions. In the case of a principal-based programme, the specialised institution offering this programme is considered the final counterparty, while in the case of an agency-based programme the specialised institution offering this programme acts only as an agent, and the final counterparty is the entity with which the security lending is effectively conducted.

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Average cost

: the weighted average method, by which the cost of every purchase is added to the existing book value to produce a new weighted average cost of a currency position, gold, debt or equity instrument.

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Capital key

: the percentage shares of the shareholdings of each national central bank (NCB) in the European Central Bank.

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Cash/settlement approach

: an accounting approach under which accounting events are recorded at the settlement date.

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Central clearing counterparty

: a legal person that interposes itself between the counterparties to contracts traded on one or more financial markets, becoming the buyer to every seller and the seller to every buyer.

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Clean price

: the transaction price excluding any rebate/accrued interest, but including transaction costs that form part of the price.

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Compensatory amount

: an adjustment made in the calculation of monetary income in line with Decision (EU) 2016/2248 of the European Central Bank (ECB/2016/36)(1).

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Discount

: the difference between the par value of a security and its price when this price is lower than par.

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Discount security

: an asset which does not pay coupon interest, and the return on which is achieved by capital appreciation because the asset is issued or bought at a discount from its nominal or par value.

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Earmarked portfolio

: earmarked investment held on the assets side of the balance sheet as a counterpart fund, consisting of debt securities, equity instruments, fixed-term deposits and current accounts, participating interests and/or investments in subsidiaries. It matches an identifiable item on the liabilities side of the balance sheet, irrespective of any legal, statutory or other constraints.

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Economic approach

: an accounting approach under which deals are recorded on the trade or transaction date.

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Emergency liquidity assistance (ELA)

: Assistance given to a solvent financial institution, or group of solvent financial institutions, that is facing temporary liquidity problems. ELA is provided by the NCBs with the approval of the Governing Council.

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Equity instruments

: dividend-bearing securities, i.e. corporate shares, and securities evidencing an investment in an equity fund.

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Exchange rate

: the value of one currency for the purpose of conversion to another.

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