All glossary entries

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
All glossary entries . ECB . Statistics . Monetary policy . Payments & markets

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earmarking
A technique for identifying collateral whereby assets provided as collateral are attributed to individual
transactions. Antonym: collateral pool
earmarking system
A system for central banks' collateral management where liquidity is provided against assets earmarked for
each individual transaction.
EBPP
See Electronic Bill Presentment and Payment (EBPP; electronic invoicing)
ECB
See European Central Bank (ECB)
ECB time
The time of the place in which the ECB is located.
ECOFIN
See Council of the European Union (EU Council)
Ecofin Council
See Council of the European Union (EU Council)
economic analysis
One pillar of the European Central Banks framework for conducting a comprehensive analysis of the risks to
price stability, which forms the basis for the Governing Councils monetary policy decisions. The economic
analysis focuses mainly on the assessment of current economic and financial developments and the implied
short to medium-term risks to price stability from the perspective of the interplay between supply and
demand in goods, services and factor markets at those horizons. Due attention is paid to the need to identify
the nature of shocks affecting the economy, their effects on cost and pricing behaviour, and the short to
medium-term prospects for their propagation in the economy. See also monetary analysis
Economic and Financial Committee (EFC)
A consultative EU body set up at the start of Stage Three of Economic and Monetary Union (EMU). The
Member States, the European Commission and the ECB each appoint no more than two members of the
Committee. Each Member State selects one member from among the senior officials of its national
administration, and the second member from among the senior officials of its national central bank.
However, the national central bank members only participate in EFC meetings when issues of their
institution's particular expertise or competence are being discussed. Article 134(2) of the TFEU contains a
list of the tasks of the Economic and Financial Committee.
Economic and Monetary Union (EMU)
The outcome of the process laid down in the Treaty establishing the European Community for harmonisation
by EU Member States of economic and monetary policies and for introduction of the euro. Three stages
were provided for: Stage One (1 July 1990 to 31 December 1993), removal of barriers to free movement of
capital within the EU, better coordination of economic policies and closer cooperation between central
banks, Stage Two (1 January 1994 to 31 December 1998), establishment of the European Monetary
Institute (EMI) followed by preparations for introduction of the euro, avoidance of excessive deficits and
enhanced convergence of policies (to ensure stable prices and sound public finances). Stage Three (from 1
January 1999) began with irrevocable fixing of exchange rates, transfer of monetary competence to the ECB

and the introduction of the euro. The TFEU no longer refers to the three stages of EMU, as this progressive
terminology is outdated. See also Treaty on the Functioning of the European Union
economic approach
The accounting approach under which deals are recorded on the transaction date.
ECU
See European Currency Unit (ECU)
EDI
See electronic data interchange (EDI)
EEA
See European Economic Area (EEA)
EERs
See nominal effective exchange rate (EER) of the euro
real effective exchange rate (EER) of the euro
EFC
See Economic and Financial Committee (EFC)
EFSF
See European Financial Stability Facility (EFSF)
EFSM
See European Financial Stabilisation Mechanism (EFSM)
EFTPOS terminal
A terminal which captures payment information by electronic means and transmits such information either
online or offline. EFTPOS stands for electronic funds transfer at point of sale. See also point-of-sale
(POS) terminal
Electronic Bill Presentment and Payment (EBPP; electronic invoicing)
Services which enable the electronic transmission, browsing and payment of invoices.
electronic data interchange (EDI)
The exchange between commercial entities (in some cases also public administrations), in a standardised
electronic format, of data relating to a number of message categories, such as orders, invoices, customs
documents, remittance advices and payments. EDI messages are sent through public data transmission
networks or banking system channels. Any movement of funds initiated by EDI is reflected in payment
instructions flowing through the banking system. UN/CEFACT, a United Nations body, has established a set
of standards relating to electronic data interchange for administration, commerce and transport (EDIFACT).
electronic invoicing
See Electronic Bill Presentment and Payment (EBPP; electronic invoicing)
electronic money
A monetary value, represented by a claim on the issuer, which is: 1) stored on an electronic device (e.g. a
card or computer); 2) issued upon receipt of funds in an amount not less in value than the monetary value
received; and 3) accepted as a means of payment by undertakings other than the issuer.
electronic money institution (ELMI)
A term used in EU legislation to designate credit institutions which are governed by a simplified regulatory
regime because their activity is limited to the issuance of electronic money and the provision of financial and
non-financial services closely related to the issuance of electronic money.
electronic purse

See multi-purpose prepaid card (electronic purse)

electronic signature (digital signature)
A string of data, generated by a cryptographic method, which is attached to an electronic message in order
to guarantee its authenticity, identify the signatory and link the content to that signatory (thereby protecting
the recipient against repudiation by the sender).
eligible assets (eligible collateral)
Assets which can be used as collateral in order to obtain credit from the Eurosystem.
eligible collateral
See eligible assets (eligible collateral)
ELMI
See electronic money institution (ELMI)
EMI
See European Monetary Institute (EMI)
Employment Guidelines
Guidelines adopted by the EU Council in line with Article 148(2) TFEU to provide the framework for defining
the employment policies of the Member States and of the Union. See also Broad Economic Policy
Guidelines (BEPGs)
Integrated Guidelines
EMS
See European Monetary System (EMS)
EMU
See Economic and Monetary Union (EMU)
EMV
An acronym describing the set of specifications developed by the consortium EMVCo, which is promoting
the global standardisation of electronic financial transactions in particular the global interoperability of chip
cards. EMV stands for Europay, MasterCard and Visa.
enhanced credit support
The non-standard measures taken by the ECB/Eurosystem during the financial crisis with a view to
supporting financing conditions and credit flows above and beyond what could be achieved through
reductions in key ECB interest rates alone.
EONIA
See euro overnight index average (EONIA)
equities
Securities representing ownership of a stake in a corporation, i.e. shares traded on a stock exchange
(quoted or listed shares), unquoted or unlisted shares and other forms of equity. Equities usually produce
income in the form of dividends.
equity instruments
Dividend-bearing securities (corporate shares, and securities evidencing an investment in an equity fund).
equity market
The market in which equities are issued and traded. See also equities
equity instruments
equity price risk

The risk of loss arising from movements in equity prices. The Eurosystem is exposed to equity price risk in
its monetary policy operations to the extent that equities are considered to be eligible as tier two assets.
ERM II
See exchange rate mechanism II (ERM II)
errors and omissions
An item in b.o.p. statements used to offset the overstatement or understatement of the other b.o.p.
components.
ESA 95
See European System of Accounts 1995 (ESA 95)
ESCB
See European System of Central Banks (ESCB)
ESFS
See European System of Financial Supervision (ESFS)
ESRB
See European Systemic Risk Board (ESRB)
EU enlargement
The European Union currently has 28 Member States. In addition to the first six Member States of the EEC
Belgium, France, Germany, Italy, Luxembourg and the Netherlands 22 further countries are now
members of the Union. These are: Denmark, Ireland and the United Kingdom (1973); Greece (1981); Spain
and Portugal (1986); Austria, Finland and Sweden (1995); the Czech Republic, Estonia, Cyprus, Latvia,
Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia (2004); Bulgaria and Romania (2007); and Croatia
(2013). Iceland, the former Yugoslav Republic of Macedonia, Montenegro, Serbia and Turkey have the
status of candidate countries.
EU Member State
See Member State
EURIBOR
See euro interbank offered rate (EURIBOR)
euro
The name of the European single currency adopted by the European Council at its meeting in Madrid on 15
and 16 December 1995.
euro area
The area formed by the EU Member States whose currency is the euro and in which a single monetary
policy is conducted under the responsibility of the Governing Council of the ECB. The euro area currently
comprises Belgium, Germany, Estonia, Ireland, Greece, Spain, France, Italy, Cyprus, Latvia, Luxembourg,
Malta, the Netherlands, Austria, Portugal, Slovenia, Slovakia and Finland.
euro interbank offered rate (EURIBOR)
The rate at which a prime bank is willing to lend funds in euro to another prime bank. The EURIBOR is
calculated daily for interbank deposits with a maturity of one week and one to 12 months as the average of
the daily offer rates of a representative panel of prime banks, rounded to three decimal places.
euro overnight index average (EONIA)
A measure of the effective interest rate prevailing in the euro interbank overn