Financial assets

Financial assets is a term from bank accounting under German law ( Commercial Code (HGB), Financial Institutions Accounting Ordinance (RechKredV)). It describes the expectation for future payments. Acquiring, holding and selling financial assets is a core area of banking .

Financial assets are differentiated according to the following characteristics:

Marketability

Legal status of the financial title holder

The legal status of the financial title holder can be used to distinguish between property rights and claims.

Accounting of receivables

There are three groups:

Debt securities and other fixed-income securities : Receivables with security character [A5]:

negotiable bearer bonds

negotiable order bonds

Bearer papers (money market papers )

It will be between

Money market paper (up to one year): Certificate of Deposit (CD), Euronotes (bonds to secure the borrower's fundraising by banks) and
Capital market papers: bonds and debentures

Cut.

Other receivables from banks and customers : A negative definition of receivables is made here.
- To credit institutions: Claims against credit institutions ( Section 1 of the German Banking Act (KWG)) and from banking transactions (materially insignificant), includes receivables due daily, which provides information on the liquidity situation.
- to customers: Due to differences in creditworthiness, loans that are secured with mortgages and municipal loans are outsourced.

Shares are any financial asset that has property or property-like rights.

Shares and other non-fixed-income securities [A6]: Shares, unless they fall under A7 / A8, shares similar to shares, investment units, negotiable participation certificates, subscription rights
Participations [A7]: Shares in other companies that serve their own business operations by establishing a permanent connection .
Shares in affiliated companies [A8]: Parent and subsidiary companies are fully consolidated.