Glossary entry

German term or phrase:

Risikodeckungsmasse

English translation:

aggregate risk cover

Added to glossary by SSC
Feb 7, 2008 02:22
16 yrs ago
9 viewers *
German term

Risikodeckungsmasse

German to English Bus/Financial Finance (general) Capital adequacy rules
This term appears in the annual report of a German bank. Here is the sentence:
Hierbei erfolgt quartalsweise ein Abgleich zwischen der Ausnutzung dieser risikoartenbezogenen Gesamtlimite (Risikokapital) und den zur Unterlegung der Risiken verfügbaren Risikodeckungsmasse.
My problem is this. It seems obvious to me that the Risikodeckungsmasse is what we normally call bank capital (core capital and/or supplementary capital or whatever), in other words the capital they have available to cover any losses. So I would like to call it risk coverage capital (to preserve a somewhat literal style). But what then to do with the Risikokapital? Actually, I would love to hear your input on both these words Risikodeckungsmasse and Risikokapital. Many thanks!

Proposed translations

+3
2 hrs
Selected

aggregate risk cover

'Risikodeckungsmasse' refers to the total resources available to cover risk (equity, reserves, etc.), whilst 'Risikokapital' is used to denote the capital allocated to a specific business line, or the capital actually exposed to risk (as indicated by the value-at-risk figure).
Peer comment(s):

agree RobinB
4 hrs
agree Steffen Walter
5 hrs
agree Julia Lipeles
8 hrs
Something went wrong...
4 KudoZ points awarded for this answer. Comment: "Thanks Ralf! That's very useful."
3 hrs

risk coverage capital

vs. "capital at risk"
Note from asker:
Thanks Vittorio! In particular I'm thinking about using capital at risk instead of risk capital.
Something went wrong...
-1
4 hrs

degree of risk coverage



masse can also mean degree
Reference:

http://leo.dict

Peer comment(s):

disagree RobinB : but not here
2 hrs
Something went wrong...
-1
4 hrs
German term (edited): Risikokapital

Capital at risk or Venture capital



Both can be used.
Reference:

http://leo.dict

Peer comment(s):

disagree RobinB : Since when was "venture capital" a capital adequacy term?
2 hrs
Something went wrong...
-1
5 hrs

risk insured sum

To answer your question: Risikodeckung has to do with risk insurance monies and Risokokapital is normal risk or venture capital.
Peer comment(s):

disagree RobinB : This has nothing to do with insurance here, but with capital adequacy requirements.
1 hr
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