In the financial crisis that followed the subprime crisis, it became clear that banks worldwide need to be made more resilient to possible distortions. The main ways of doing this are: – a higher equity ratio at the institutions; – larger liquidity cushions, practically corresponding credit balances at the central bank, because these, and only these, can be drawn on immediately even in the event of market failure; – thorough risk management that sets warning signals in good time; – more precise, internationally coordinated and legally secure monitoring of the institutions and markets by the supervisory authorities; national and global supervisory gaps must be closed; – perhaps also a separate insolvency law for banks. – See resolution mechanism, unified, supervisory avoidance, banking supervision, European, bank scolding, bank testament, Basel-III, capital buffer, variable, International Business Company, leverage ratio, managed bank, Sifi oligopoly. – Cf. BaFin Annual Report 2011, p. 154 f. (strengthening capital adequacy; details), Financial Stability Report 2012, p. 90 f. (countercyclical capital buffer for loans).
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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/