Glossary

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  4. D
  5. E
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  8. H
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  13. M
  14. N
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  21. U
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E

EARLY REPAYMENT

Termination of the contractual relationship by repayment of the principal outstanding - in a lump sum - before the mortgage end date.

ECONOMIC RESEARCH

Economic and statistical research and analysis provide support for the decisions that the Bank of Italy takes in relation to its institutional activity: the definition of monetary policy; policies for financial stability; participation in the main international organizations and institutions; and the formulation and assessment of economic policy proposals, as expressed in the opinions the Bank submits to Parliament and the Government. The results of the Bank’s activity are disseminated in official publications and in essays and articles published in specialized books and reviews.

EDUCATION (FINANCIAL)

The Bank of Italy is committed to promoting financial education and is a member of the Committee for the planning and coordination of financial education activities. The Committee aims to promote and plan awareness-raising campaigns as well as financial education initiatives. The Committee plays a crucial role in laying down and implementing the National Strategy for Financial Education in Italy, which envisages the dissemination of basic knowledge together with fully integrated tools to enable people to become familiar with financial rules and products, which are sometimes quite difficult to understand.

ELECTRONIC MONEY (E-MONEY)

Money registered electronically on prepaid cards or e-money accounts, which can be used to make payment transactions. Electronic money can be issued in Italy by banks, Poste Italiane and electronic money institutions (EMIs).

ELECTRONIC MONEY INSTITUTION (EMI)

An institution that has been authorized, together with banks and Poste Italiane, to issue electronic money and to provide other payment services. EMIs are subject to a regulatory and supervisory regime comparable to that in force for the other supervised intermediaries (in terms of licensing and capital requirements, as well as of organizational safeguards).

ELECTRONIC WALLET

It is increasingly common to make online payments by electronic wallet (e-wallet). Some examples of e-wallet providers are Google Pay, Amazon Pay, Apple Pay and Samsung Pay. An e-wallet is an app that enables a customer to store payment card details and perform transactions, in-store and online, in just a few seconds. Another kind of e-wallet is that offered by intermediaries such as Paypal and Satispay. Through this e-wallet, a customer accesses their online account with the intermediary that provides the e-wallet service, and transfers money from their account to someone else's, not unlike a money transfer.

ETF (EXCHANGE TRADED FUNDS)

Investment funds that, like shares, are traded on a stock exchange and can therefore be bought and sold in real time on regulated markets. ETFs passively replicate the performance of a market index (for instance, a stock market index). As management fees are usually low, ETFs can provide retail investors with low-cost diversification opportunities, including small investments.

EURO INTERBANK OFFERED RATE (EURIBOR)

An interbank rate set daily at European level that can be used as a benchmark for variable-rate mortgages.

EURO INTEREST RATE SWAP (EURIRS OR IRS)

A banking rate set daily at European level that can be used as a benchmark for fixed-rate mortgages.

EUROPEAN COMMISSION ACTION PLAN

Published in March 2018, the Plan sets out the Commission's strategy for connecting capital markets with an inclusive sustainable development model based on the Paris Agreement on climate change.

The strategy's goals are to manage more effectively the financial risks associated with the exploitation of natural resources, environmental degradation and social inequality, to improve transparency and to foster a longer-term approach to economic and financial activities.

EUROPEAN GREEN BOND STANDARD

The European Green Bond Standards under Regulation (EU) 1012/2631 serve as the framework for issuers (including those outside the EU) who wish to use the designation "European Green Bonds" or "EuGBs". The full text of Regulation 2023/2631 can be accessed at this link. The EU Green Bond Standards are broadly aligned with the principles established by the International Capital Market Association (ICMA), but include more specific requirements. In particular: the funds raised through the bonds should be aligned with the EU Taxonomy; green projects must comply with the "do no significant harm" principle in relation to other environmental objectives; certification must be provided by entities included in a list maintained by the European Securities and Markets Authority (ESMA).

EUROPEAN STANDARDIZED INFORMATION SHEET (ESIS)

Document containing customized information on the mortgage that is needed for the borrower to compare different offers on the market. The ESIS is provided free of charge, soon after the customer informs the lender about their needs, financial situation and preferences, and in any case sufficiently in advance of the customer signing the mortgage contract or accepting the offer. The contents of the contract must be consistent with the information contained in the ESIS.

EUROSYSTEM

The system of euro-area central banks responsible for implementing the single monetary policy. It comprises the European Central Bank (ECB) and the national central banks (NCB) of the Member States whose currency is the euro.

EXPENSES

In accounting, this is an outflow that causes available money to decrease, or in other words 'spending'. The purpose of financial planning is to balance a household's income and its expenses. Sound financial planning starts with an analysis of the household's finances, and involves setting spending and saving goals. To do this, it is necessary to calculate how much money normally goes into and out of the household's 'coffers', bearing in mind the characteristics of the different sources of income and of the different types expenses, however predictable. To help you achieve your financial planning goals, it is useful to keep a record of income and expenses, in other words a budget.