Banco de España - General Glossary

General Glossary

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Marked cheque: A cheque through which the bank assures that the issuer of the same has enough funds, which are retained until payment is made.
Market Conduct and Claims Department: The Banco de España service to attend the complaints and claims of bank service users who consider that they have not been duly attended by the Customer Care Service or the ombudsman of a financial institution. The advisory opinions of the Market Conduct and Claims Department are not legally binding for the institutions but a high percentage of them are fulfilled.
Mixed deposit: Also known as a combined deposit or structured deposit, this type enters into the category generically called "atypical financial contracts", and they are usually a combination of a time deposit and a derivative product. It is considered a high-risk instrument, as the marketing institution does not guarantee total reimbursement of the capital received.
Money market fund shares: Shares in collective investment institutions which primarily invest in money market instruments and/or in other transferable debt instruments with a residual maturity of up to one year and/or which attempt to achieve a performance similar to money market interest rates.
Mortgage: Rights in rem encumbering a property and that are normally used to achieve the necessary financing to purchase it (although it is also possible to mortgage chattels). Mortgages are registered in the Land Registry.
Mortgage bond: A financial instrument or security issued by a financial institution which operates in the mortgage market. Its issuance must be announced in the Official State Gazette and its deed must be registered at the Companies Register.
Mortgage covered bond: A fixed income financial instrument or security issued with the guarantee of the mortgage loan portfolio of the issuing credit institution.
Mortgage equity withdrawal: A loan for which payment is guaranteed by the value of a property. In case of default, the lender receives the ownership of the asset mortgaged.
Mount of Piety: A currency fund created with the contributions of individuals from a specific group in order to assign the funds to their members for pensions or aid in case of need.
Mutual guarantee and reguarantee companies: Companies with variable capital having a specific regulation for the purpose of granting collateral in favour of their shareholders. Mutual guarantee companies are supervised by the Banco de España and at least four-fifths of their shareholders must be small and medium-sized enterprises. Therefore, mutual guarantee companies act as an instrument for business promotion which facilitates credit to SMEs as they allow to direct and promote the investment they guarantee.