Approach proposed by academics to deal with distortions in the financial system. According to this plan, failing banks should not be supported directly by the state – i.e. ultimately by the taxpayer. Instead, according to this plan, healthy, strong banks would receive a loan of capital from the state for a specific purpose. This would enable them to take over insolvent institutions in whole or in part. In this way, banks that take on fewer risks would be strengthened. – See resolvability, bank rescue, Sifi oligopoly, stability fund, European, zombie bank, forced convertible bond.
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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/