A reserve fund proposed in connection with the financial crisis that followed the subprime crisis, into which systemic banks would have to pay. The main aim was to – weaken the incentive for an institution to become systemically relevant, – thus also reduce the impact of future crises and – (at least partially) prefinance part of the costs for rescue operations in the event of a crisis. – The model for such considerations is the Swedish Stability Fund, which was set up in 2008, comprised 1 percent of GDP just one year later and will grow to 2.5 percent of GDP over the years. – See resolution mechanism, unified, bailout, bank, systemic, bank bailout law, bank testament, bazooka, G-Sifi, moral hazard, emergency fund for crisis banks, shadow state, stuffing goose strategy, too big to fail principle.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/