Bank Glossary - T

Renewal certificate for securities (credit note) or, more accurately, on the dividend or interest coupon sheet. By presenting the talon, the holder of the security receives a new Coupon sheet, provided that all the dividend or interest certificates have been separated and used up beforehand.
A payment system consisting of one real-time gross settlement (RTGS) system for each member state within the euro zone at the start of stage three of European economic and monetary union. The national RTGS systems are to be interconnected via the Interlinking mechanism to ensure same-day cross-border transfers throughout the euro zone. RTGS systems of EU member states outside the euro zone may also be connected to TARGET, provided they are able to process euros.
Tax deducted at source
Taxes on interest and dividends which are levied by tax deduction abroad in the context of limited tax liability without special assessment.
Handling of banking transactions via the customer's own computer stations, such as screen text and videotext, using telecommunications instruments. Telebanking is a sub-section of the range of products offered by banks in the private and corporate service sector (electronic banking).
Telephone dealing
Dealing by telephone in securities, foreign exchange or precious metals by telephone between banks outside the stock exchange.
Tendering procedure
The tendering procedure (placement procedure) is used, in the context of the combined procedure for federal bonds, for the issue (floatation) of treasury bonds and NIBTB's, together with - since August 1995 - the payment of instalments for federal bonds; (quantity tender, interest tender).
The time between the granting of a credit facility and its fixed repayment. In the case of fixed-interest securities, the time between the issue of a security and its redemption. Terms are heavily dependent upon the market situation. At present, the terms most frequently applied to securities are between five and ten years.
Ratio which indicates the dependency of the option value on changes in the remaining term.
Smallest possible price alteration according to the contractual or trading conditions in transactions on futures or cash exchanges.
Tier-one collateral asset
A marketable collateral asset fulfilling certain uniform eligibility criteria specified by the ECB and applicable throughout the euro zone. Among these criteria are the requirement that assets be denominated in euros, issued (or guaranteed) by entities located within the EEA, and be deposited at a national central bank or CSD located within the euro zone.
Tier-two collateral asset
A marketable or non-marketable collateral asset (of particular importance for domestic financial markets) for which certain eligibility criteria are established by the national central banks subject to ECB approval. The uniform minimum eligibility criteria include the requirement that assets be denominated in EEA currencies or other widely-traded currencies, that they be issued (or guaranteed) by entities located within the EEA, and be deposited at a national central bank or CSD located within the EEA.
Time deposit
Fixed-term investments which, as a general rule, are invested with a credit institution, for a minimum of 30 days at a fixed interest rate, in order to earn a higher interest rate than with demand deposits. Time deposits principally take the form of fixed deposits.
T-Online (formerly Btx) is an electronic system for the transmission of data over telephone lines that allows users to place screen-based orders (terminals, modern television sets) or call up information (account movements, account balances etc.).
Top-down method
Method for the conversion of bonds to euros. Under the so-called top-down method, bonds are converted from top to bottom on the basis of the minimum denomination (e.g. DM 100) according to the hierarchy of depository levels (1. Deutsche Börse Clearing, 2. banks, 3. Individual custody accounts).
Trade supervisory centre
see Stock market supervision
Trading result
Balance - calculated from the profit and loss account on the basis of the mark-to-market supplement - of the income and expenditure from private trading in securities, financial instruments, foreign currency and precious metals. In addition, the trading result includes the interest and dividend revenue incurred by private trading, together with the refinancing costs for the maintenance of stock.
Instalment of a loan, can take the form of - multiple instalments - at different interest rates or of international bond issues in different currencies.
Traveller's cheque
Instruments of payment for travellers which is intended to frustrate or eliminate the misuse of foreign currency instruments of payment. Traveller's cheques display specific amounts in DM, foreign currency or ECU's (Euro Traveller's Cheque) and are issued by national and foreign banks. Traveller's cheques are signed by the holder at the time of purchase. They can then be encashed at credit institutions at home and abroad or can be used for making payments directly to companies such as hotels and individual trading establishments. The traveller's cheques must be signed at the time of encashment. If a holder mislays his traveller's cheques before encashment, they will be replaced upon presentation of the sales receipt.
Treasury bonds
Debenture bonds, either short- or long-term, which are issued by the German Government, by the Federal States and/or special Government funds. There are two types of Treasury bond

interest-free Treasury bonds, where the remuneration is in the form of discounting

fixed-interest Treasury bonds, which are simply medium-term bonds.

Treaty establishing the European Union
Forms the contractual basis of the European Union. In Maastricht, in the Netherlands, the Finance and Foreign Ministers of the then twelve Member States signed the Treaty establishing the European Union on 7 February 1992. The Treaty contains fundamental decisions for achieving economic and monetary union as well as political union. Following its ratification by the Member States the Treaty came into force on 1.11.1993.
True interest rate
Return on a capital investment, taking account of the inflation rate.
Trust account escrow deposit
Accounts to which property holdings, to which the account holder is not financially entitled, are credited. The account holder maintains the account in his own name but on behalf of a third party. Lawyer /notary trust accounts are of significance but they should only be opened for certain professional groups (such as notaries public).
Types of stock exchange
These vary according to the type of trading object; securities on stock exchanges, currency on foreign exchange markets, futures contracts on futures exchanges and interchangeable goods on commodities exchanges. There are special stock markets for metals, sugar and cotton or for services such as freight, marine or insurance payments.