Banco de España - General Glossary

General Glossary

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Official banking: In Spain, this concept makes reference to a series of state-owned credit institutions, such as Caja Postal, Banco de Crédito Agrícola, Banco de Crédito Local, Banco Hipotecario de España and Banco Exterior de España.
Ombudsman: A position that a financial institution can voluntarily create to deal with their customers' complaints and claims. In any case, the institutions must always have Customer Care Service. If a customer does not receive a satisfactory response to their complaint by the Ombudsman, they can appeal to the Banco de España Market Conduct and Claims Department.
Option: Financial instrument that gives the owner the right, but not the obligation, to buy or sell specific assets (for example, a bond or a stock) at a predetermined price (the strike or exercise price) at or up to a certain future date (the exercise or maturity date).
Order cheque: A cheque payable to order that can be endorsed (transferred to another person by means of a written declaration by the holder on the document itself).
Organised markets: Financial markets wherein financial asset exchange is governed by specific regulations, such as market entry conditions, registration of securities, price fixing mechanisms, intermediation costs and terms, contract standardisation, transparency obligation, etc.
Overdraft: The debit balance of a current account, more commonly known as being "in the red". This can only occur when the institution authorises funds to be drawn of an amount exceeding the existing balance. The interest rate that can be applied to this overdraft is regulated by law and may not lead to an annual percentage rate of more than 2.5 times the legal interest rate of money.