Cap on items of the balance sheet

Proposed authority of the supervisory authority to prescribe maximum amounts for certain balance sheet items, such as loans granted, guarantees assumed and securitized receivables. The prevention of a bank’s difficulties is, however, the very task of the company’s management and the relevant supervisory bodies, such as the supervisory board, group management or institution-specific control bodies. For reasons of commercial law alone, this cannot be transferred to an authority. The fundamental task of a supervisory authority is to ensure compliance with the rules of the game in the financial market. – See resolvability, bad bank problem, fundamental, bank, systemic.

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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/