Glossary
A  B  C  D  E  F  G  H  I  J  K  L  M  N  O  P  Q  R  S  T  U  V  W  X  Y  Z  

Balance of payments
A statistical instrument that summarises, for a specific time period, the economic transactions of an economy with the rest of the world. The transactions considered are those involving goods, services and income; those involving financial claims on, and liabilities to, the rest of the world; and those (such as debt forgiveness) that are classified as transfers.

Balance sheet (Annual account)
The balance sheet describes the company's assets at the end of the fiscal year. On the one hand you will find the property or the "assets" of a company. The latter for instance encompass the buildings, the vehicles, the stocks (raw materials and auxiliary materials, commodities), claims on customers, liquidities, etc. On the other hand there are the sources of finance or the "liabilities" of the company. Liabilities for instance refer to the capital contributed by the shareholders, the debts to credit institutions, suppliers, provisions built up in view of the anticipated expenses.

Bank for International Settlements (BIS)
International financial institution whose primary aim is to promote cooperation between the central banks of the industrial countries. The BIS acts as the ‘bank of central banks’.

Banksys
An interbank organisation which runs the national network via which millions of payment transactions pass which have been generated by debit and credit cards.

Basle Committee on Banking Supervision
The Basle Committee on Banking Supervision was set up in 1974 by the governors of the G10. It deals with questions concerning banking supervision, and in particular the capital requirements imposed on credit institutions.

Bearer Security
A paper stock or bond. The owner is the person that has the security in his possession and the transfer of ownership takes place by simply handing over the security.

Belgian Treasury Bills, BTB
Short-term dematerialised loans in euro or in foreign currency issued by the Belgian Treasury. They are related to the euro-denominated treasury certificates, but, unlike them, they can be issued continuously.

Belgostat online
Socio-economic data bank holding extensive macroeconomic information. Belgostat contains a number of economic and financial time series (inter alia GDP, economic cycle, population and labour market, prices and wages, foreign trade, exchange rates, interest rates) the users are provided with electronically.

Benchmark
In relation to investments, a benchmark is a reference portfolio or index constructed on the basis of the objectives for the liquidity and risk of, as well as the return on, the investments. The benchmark serves as a basis for comparison of the performance of the actual portfolio.

Bill of exchange
The bill of exchange is a negotiable security signed and dated by its issuer (the drawer). It contains an unconditional order or instruction for the debtor (the drawee) to pay a fixed sum of money to a certain person or to their order upon maturity. If the debtor agrees to this, he accepts the bill of exchange by signing it. Its form, content and legal consequences are governed by law.

Bimetallism
This monetary system based on the two metal standards, gold and silver, was in almost universal use until the mid 19th century. The discovery of substantial gold mines (California in 1848, Australia in 1851) and silver mines (in Nevada) caused excessive fluctuations in the value of these two metals. That disrupted the operation of the system, which was gradually abandoned.

Bond centre
A paid service of the National Bank that offers banks the possibility to send their matured government debt coupons and government securities from the bank offices concerned directly to the Securities Service for collection.

Bond market
The market on which medium and long-term debt securities, i.e. debt securities with an original maturity of more than one year, are issued and traded.

Bretton Woods
In 1944, at the American holiday resort of Bretton Woods, in New Hampshire, the foundations were laid for an international monetary system. During World War II, the allies’ financial experts met there to prepare for peacetime financial conditions. The new system was intended to prevent the mismanagement of currencies, to devise a less rigid system than the gold standard, and to stabilise exchange rates. The new system was no longer based exclusively on gold, but on gold plus the US dollar. The system survived until the early 1970s when President Nixon decided to let the dollar float. The International Monetary Fund and the World Bank are two institutions which were created at the Bretton Woods conference.

BTB, Belgian Treasury Bills
Short-term dematerialised loans in euro or in foreign currency issued by the Belgian Treasury. They are related to the euro-denominated treasury certificates, but, unlike them, they can be issued continuously.