# Crisis burden sharing program

- Canonical URL: https://www.gerhardmerk.de/crisis-burden-sharing-program
- Post ID: 591775
- Modified: 2023-07-25T20:59:32+00:00
- Language: en

## Definition

An agreement, made in advance and known to all parties, on how to share losses incurred in the event of a financial crisis. Advocated by some as a measure of prudent, forward-looking policy, rejected by others as a flagrant invitation to careless behavior. - Internal and confidential (i.e., not published and known in detail only to a small circle) emergency programs that authorities - government, central bank, regulator - have shelved for such crises. - The intended or actual burden on individual economic agents in the wake of a crisis. In Germany, for example, savers had to bear a large part of the burden - according to reliable calculations, about 36 billion euros per year - by way of a diet yield (extremely low interest rate for bank deposits) to cope with the financial crisis that followed the subprime crisis. - See banking crisis, crash, contingent loss, financial crisis, financial stability report, crisis plan, London procedure, models, monetary policy, model uncertainty, moral hazard, risk-bearing capacity, shock management, single master liquidity conduit, stress test, loss-sharing arrangement, worst case scenario. 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/

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