Unless otherwise defined, the assessment of a customer’s creditworthiness by the bank. This is an inherent responsibility of the institutions, which they have to perform in a competitive environment. The proposed transfer of credit assessment to an authority of whatever kind increases the risk of misallocation of money and thus of scarce resources; these no longer reach the best host (to the most favorable allocation of scarce resources). – See credit, reputation, rating, subsidiarity principle overconfidence.
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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/