Glossary

T

TEGM (Tasso Effettivo Globale Medio) Average Overall Effective Rate under Law 108/96 (anti-usury law)

The average overall effective rate is the benchmark for setting the threshold rate above which interest on a loan is deemed usurious, regardless of who applies it. It provides the average value of the interest rates applied by banks and supervised financial institutions (including commissions, remuneration of any kind and expenses, excluding taxes).

As delegated by the Ministry of Economy and Finance (MEF), the Bank of Italy collects data on TEGMs on a quarterly basis for homogeneous categories of loans (e.g. overdraft facilities, personal loans, mortgages, etc.). The values collected, adjusted for any changes in the official rates after the reference quarter, and the threshold rates are published in the Official Journal of the Italian Republic (Gazzetta Ufficiale) by the MEF, which also makes them available on its website (only in Italian). Banks and financial institutions are required to display the decree identifying lending operations and that governing TEGMs and threshold rates in premises open to the public.

TIPS DCA (Dedicated Cash Account)

Account held by a bank as a TIPS Participant, opened and used for the settlement of instant payments in TIPS. TIPS DCAs are governed by the TARGET2 Guideline.

TIPS DN (Distinguished Name)

Network address used by participants in TIPS to send and receive instant payment orders. The TIPS DN is also used as a technical address (Party Technical Address) for receiving notifications and reports.

TIPS GUI (Graphical User Interface)

Graphic interface used by TIPS users in order to interact with the platform in U2A mode.

TIPS Participant

A participant in TIPS, owner of one or many TIPS DCAs. A TIPS Participant is identified by a BIC11.

Transit Account

An account held by each central bank responsible for the RTGS System related to a given settlement currency in TIPS. The transit account reflects any movement of liquidity from/to the RTGS. The ECB is responsible for the Transit Account denominated in euro.

Triparty service

a service through which a market player entrusts a third party (see triparty agent) with the selection, mobilization and, more generally speaking, the overall management of collateral, both for market and credit operations within the Eurosystem.