All glossary entries



A credit institution is “reachable” if it can execute a credit transfer order and/or a direct debit instruction sent by any other bank in a particular currency area.
real effective exchange rate (EER) of the euro
Real euro EERs are nominal euro EERs deflated by a weighted average of foreign, relative to domestic, prices or costs. They are, thus, measures of price and cost competitiveness. See also
effective exchange rate (EER) of the euro
nominal effective exchange rate (EER) of the euro
real-time gross settlement (RTGS) system
A settlement system in which processing and settlement take place on a transaction-by-transaction basis in real time.
The transfer of assets from the account of one investor central securities depository (CSD) to the account of another investor CSD, both of which are held with the issuer CSD, in order to reflect the transfer of assets between participants in those investor CSDs. See also
investor CSD
issuer CSD
realised gains or losses
Gains/losses arising from the difference between the sale price of a balance sheet item and its (adjusted) cost.
An aggregate in monetary statistics that comprises changes in the MFI balance sheet that are due to a change in the MFI reporting population, to corporate restructuring, to a reclassification of assets and liabilities and to the correction of reporting errors (whenever the reporting error can be totally removed from the series, no specific reclassification needs to be reported). The occurrence of these factors gives rise to breaks in the series and, hence, affects the comparability of successive end-of-period levels.
A procedure to verify that two sets of records issued by two different entities match.
reference value for monetary growth
In order to assess monetary developments, the Governing Council has announced a reference value for the growth of the broad monetary aggregate M3. This reference value refers to the rate of M3 growth that is deemed to be compatible with price stability over the medium term. The reference value is derived in a manner that is consistent with and serves the achievement of the Governing Council's definition of price stability on the basis of medium-term assumptions regarding trend real GDP growth and the trend in the velocity of circulation of M3. Substantial or prolonged deviations of M3 growth from the reference value would, under normal circumstances, signal risks to price stability over the medium term. However, monetary policy does not react mechanically to deviations of M3 growth from the reference value. At present, this reference value is 4½%.
reference value for the fiscal position
TFEU Protocol No 12 on the excessive deficit procedure sets explicit reference values for the general government deficit ratio (3% of GDP) and the debt ratio (60% of GDP). See also
Stability and Growth Pact (SGP)
In the field of direct debits, a claim made by a debtor for the reimbursement of debits effected from its account (with or without a specific reason being indicated by that debtor).
In the field of direct debits, an instruction issued by a debtor prior to settlement, for whatever reason, to the effect that the debtor bank should not make a direct debit payment.
registry (registrar)
The documenting of the ownership of securities in the records of the issuer, in a registry or in a central securities depository (CSD).
registry (registrar)
An entity that records the ownership of securities on behalf of the issuer.
In the field of payments, a payment transaction whose normal execution is prevented by the payment service provider of either the payer or the payee prior to settlement.
relayed link
A contractual and technical arrangement that allows issuer and investor central securities depositories (issuer and investor CSDs) to hold and transfer securities through an account with a third CSD (a “middle CSD”), which acts as an intermediary.
remote access
Direct access by an institution established in one country to a system (e.g. a payment system, a securities settlement system or a central counterparty (CCP)) established in another country.
remote participant
A participant in a system which operates from a country other than that in which the system in question is located.
remote payment
A payment made from a distance, without the payer and payee being present at the same physical location. Antonym:
face-to-face payment
replacement cost risk
The risk that, owing to a party to a transaction failing to meet its obligation on the settlement date, its counterparty may have to replace the original transaction at current market prices (“replacement cost”). See also
market risk
repurchase agreement
repurchase operation
repo operation
repurchase operation
repurchase agreement
The process of borrowing money by combining the sale of an asset (usually a fixed income security) with the subsequent repurchase of that same asset for a slightly higher price (which reflects the borrowing rate).
repurchase date
The date on which the buyer is obliged to sell back assets to the seller in relation to a transaction under a repurchase agreement. See also
repurchase agreement
repurchase operation
A liquidity-providing reverse transaction based on a repurchase agreement.
repurchase price
The price at which the buyer is obliged to sell back assets to the seller in relation to a transaction under a repurchase agreement. The repurchase price equals the sum of the purchase price and the price differential corresponding to the interest on the extended liquidity over the maturity of the operation. See also
repurchase agreement
reserve account
An account with the national central bank on which a counterparty's reserve holdings are maintained. The counterparties' settlement accounts with the national central banks may be used as reserve accounts. See also
reserve holdings
reserve assets (in a b.o.p. context)
External assets that are readily available to and controlled by monetary authorities for meeting balance of payments financing needs, for intervention in exchange markets to affect the currency exchange rate, and for other related purposes (such as maintaining confidence in the currency and the economy, and serving as a basis for foreign borrowing). See also
international reserves template
reserve base
The sum of the eligible balance sheet items (in particular liabilities) that constitute the basis for calculating the reserve requirement of a credit institution. See also
minimum reserves
reserve holdings
Counterparties' holdings on their reserve accounts which serve to fulfil reserve requirements. See also
minimum reserves
reserve ratio
The ratio defined by the central bank for each category of eligible balance sheet items included in the reserve base. The ratios are used to calculate reserve requirements. See also
minimum reserves
reserve-related liabilities
Predetermined and contingent short-term net drains on the Eurosystem, similar to reserve assets and other foreign currency assets of the Eurosystem.
An amount set aside out of distributable profits, which is not intended to meet any specific liability, contingency or expected diminution in value of assets known to exist at the balance sheet date.
The location (dwelling, place of production or other premises) within the economic territory of a country, from which an institutional entity engages and intends to continue engaging (indefinitely or for a finite period of, as a rule, one year or more) in economic activities and transactions on a significant scale. See also
An individual or entity defined in Council Regulation No 2533 of 23 November 1998 (as amended) concerning the collection of statistical information by the European Central Bank, and in line with the ESA 2010, as having a centre of predominant economic interest in the economic territory of a country, i.e. the euro area in the case of Eurosystem statistics. See also
residential property price indicator
A measure of the average changes over time in prices of residential dwellings (including both new and second-hand houses and flats). There is no harmonised methodology, and euro area aggregates are currently based on heterogeneous national indicators.
residual maturity
Time remaining until the maturity date of a debt instrument.
retail bank interest rates
MFI interest rates
retail funds transfer system
A funds transfer system which typically handles a large volume of payments of relatively low value in forms such as cheques, credit transfers and direct debits.
retail payment
A non-time-critical payment of relatively low value. These payments are typically made outside of the financial markets and are both initiated by and made to individuals and non-financial institutions. Antonym:
large-value payment
retail sales
The turnover in the retail trade (excluding sales of motor vehicles and motorcycles and excluding repairs) invoiced during the reference period; all duties and taxes, with the exception of VAT, are included.
retailer card
A card issued by a merchant for use at specified merchant outlets.
Funds sent back by the payee to the payer following settlement of the original payment instruction. The term “return” is used in connection with both direct debits and credit transfers.
revaluation accounts
Balance sheet accounts for registration of the difference in the value of an asset or liability between the adjusted cost of its acquisition and its valuation at an end-of-period market price, when the latter is higher than the former in the case of assets, and when the latter is lower than the former in the case of liabilities. They include differences in both price quotation and/or market exchange rates.
reverse repo
reverse sale and repurchase agreement ("reverse repo")
reverse sale and repurchase agreement ("reverse repo")
A contract under which a holder of cash agrees to the purchase of an asset and, simultaneously, agrees to re-sell the asset for an agreed price on demand, or after a stated time, or in the event of a particular contingency. Sometimes a repo transaction is agreed via a third party ("triparty repo"). See also
repurchase agreement
reverse transaction
An operation whereby the central bank buys or sells assets under a repurchase agreement or conducts credit operations against collateral.
return on assets
return on equity
residential real estate
RTGS system
real-time gross settlement (RTGS) system
risk-weighted asset