Dictionary

Land and buildings connected with the ground by a firm foundation, e.g. apartments, houses, etc.

An entity, which is authorized to register all the real-estate on the territory of the Czech Republic, including the registration of all changes related to real-estate (e.g. a transfer of ownership rights, registration of a lien right, etc.).

Investors reinsure against possible unfavourable developments in future prices. Very suitable for reinsurance are derivatives.

These contracts make it possible for investors to reinsure their positions in assets or liabilities of the balance sheet or sub-ledger. The most commonly used instrument in this area is futures.

Example: We plan that in a few months we will need a certain amount of USD. The present rate in the futures market  can be considered as advantageous, so we would like to purchase USD for this rate in a few months. Therefore we purchase futures for American dollars now.

In several months after the purchase of the contract of futures we purchase dollars on the spot market and at the same time sell the contract of futures. If, against our original expectations, the USD has weakened, then the loss in the market of futures will be compensated by the profit from the purchase of USD in the spot market (we will purchase USD in the spot market more cheaply than the price of futures at the time of the purchase of futures).

If, on the contrary, the USD has strengthened, then the profit in the market of futures will be compensated by the loss from the purchase of USD in the spot market (we will purchase USD in the spot market at a higher price than the price of futures at the time of the purchase of futures).

As a part of the emergency services provided to the cardholder, a replacement card (Emergency Card Replacement) is issued with maximum validity of 2 months. The replacement card cannot be used to withdraw cash from ATMs or to pay at payment terminals. It is intended for use in manual terminals (imprinters).

If a payment card is stoplisted due to loss or theft, Komercni banka may issue a replacement card. The new card has a new card number and PIN.

Retail banking is understood to mean the provision of services to the general public, i.e. the provision of credit repayable in instalments, mortgage loans, depositary services, etc.

In comparison to wholesale banking retail banking encompasses a large spectrum of activities at many branches. Certain services offered by retail banking (e.g. credit cards) are highly profitable.

Revolving loan is a short-term loan with the option of recurring drawing. A Credit limit is set on the credit account and it can be drawn repeatedly, provided that conditions of the loan agreement are met. Each instalment releases the amount of the credit line available for drawing.

Financial institutions and markets exist in a world of insecurity that brings certain risks.

The most significant risk of financial markets is the credit risk, which means a risk of loss if the partner fails to honour his commitments according to the conditions of the contract. In the category of credit risk, the so-called settlement risk is sometimes specified, which is a risk of loss from a failure to settle a transaction.

Another important risk is market risk, which is divided into the following risks:

This is a risk of loss in the case of the small liquidity of markets (risk of market liquidity), or risk of momentary insolvency (risk of cash flow).

Operational risk is a risk of risk in the case of human errors, fraud or imperfection of information systems.

Legal risk is a risk of loss if a contract is not legally enforceable.

Return On Assets is an index which describes how much the capital of shareholders will generate. It is determined as the ratio of after-tax net profit to average shareholder funds.

Return on equity is an index which says how much the capital of shareholders yields. It is determined as the ratio of after-tax net profit to average funds of shareholders.