# Diamond thesis

- Canonical URL: https://www.gerhardmerk.de/diamond-thesis
- Post ID: 591667
- Modified: 2023-07-25T21:00:29+00:00
- Language: en

## Definition

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. 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

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