You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
Core inflation: inflation measure that excludes changes in selected components<br />
from the underlying basket of goods and services. Energy and food are<br />
factored out most frequently, given their volatile price development.<br />
Credit risk: the risk of changes in customer creditworthiness affecting a<br />
bankÕs assets.<br />
Excessive deficit procedure: mechanism defined in Article 104 of the<br />
TreatyandProtocolNo20ontheexcessivedeficitprocedurethatrequires<br />
EU Member States to maintain budgetary discipline; the Stability and Growth<br />
Pact substantially extended and accelerated the excessive deficit procedure<br />
(EDP). It defines criteria for a budgetary position to be considered as an<br />
excessive deficit and sets out the steps to be taken when a Member State<br />
has not fulfilled the budget balance or government debt criteria. In line with<br />
the conclusions of the European Council of March 22 and 23, 2005, the EDP is<br />
scheduled to be amended in the course of 2005.<br />
Exchange Rate Mechanism II (ERM II): exchange rate arrangement<br />
that provides the framework for exchange rate policy cooperation between<br />
the euro area countries and the EU Member States not participating in Stage<br />
Three of Economic and Monetary Union (EMU). It specifies fluctuation bands<br />
(up to a maximum of –15%) for the key interest rates of a currency against the<br />
euro. Participation in ERM II for at least two years without severe tensions and<br />
without a devaluation against the currency of another Member State is one of<br />
the criteria a country has to fulfill to qualify for Stage Three of EMU.<br />
IBAN: International Bank Account Number. Internationally agreed standard<br />
to identify a customerÕs account at a financial institution; designed to replace<br />
the combination e.g. of an account number and the financial institutionÕs<br />
routing/transit code (Bankleitzahl) in Austria. The IBAN was developed by<br />
the International Organization for Standardization (ISO) and the European<br />
Committee for Banking Standards (ECBS) to assist error-free and smooth<br />
processing of cross-border transactions. It is made up of the ISO country code,<br />
check digits, a bank code and an account number.<br />
Imported inflation: sustained rise in the general price level attributable<br />
exclusively to inflationary pressures abroad.<br />
Institutional analysis: thorough analysis of monetary developments in the<br />
euro area based on information derived from many different statistical<br />
sources, such as MFI balance sheet statistics, balance of payments data and<br />
financial accounts data, which is carried out as part of the second pillar of<br />
the monetary policy strategy of the European Central Bank (ECB).<br />
Lamfalussy process: concept developed at the EU level by the Committee<br />
of Wise Men, chaired by Baron Alexandre Lamfalussy, on the regulation of<br />
European securities markets. In December 2002, the EU Council decided<br />
to extend this approach to the entire financial sector. The four-level regulatory<br />
approach aims at accelerating the legislative process of the EU, increasing<br />
Glossary<br />
<strong>Annual</strong> <strong>Report</strong> <strong>2004</strong> ×<br />
125