# Stability Fund, European (European Stability Fund)

- Canonical URL: https://www.gerhardmerk.de/stability-fund-european-european-stability-fund-2
- Post ID: 590364
- Modified: 2023-07-25T21:12:06+00:00
- Language: en

## Definition

A reserve fund proposed in connection with the financial crisis that followed the subprime crisis, into which systemic banks would have to pay. The main aim was to - weaken the incentive for an institution to become systemically relevant, - thus also reduce the impact of future crises and - (at least partially) prefinance part of the costs for rescue operations in the event of a crisis. - The model for such considerations is the Swedish Stability Fund, which was set up in 2008, comprised 1 percent of GDP just one year later and will grow to 2.5 percent of GDP over the years. - See resolution mechanism, unified, bailout, bank, systemic, bank bailout law, bank testament, bazooka, G-Sifi, moral hazard, emergency fund for crisis banks, shadow state, stuffing goose strategy, too big to fail principle. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! 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/

## Machine-readable

- Generator: Merk Knowledge 1.1.1