Investors entrust their money to a bank because the institutions bundle the monitoring of debtors. This results in far lower costs than if each individual lender had to carry out this monitoring itself. – This statement (formulated by the American economist Douglas Diamond) is the basis for the fundamental criticism of securitization.
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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/