# Bank bailout, reverse (strengthening the strong policy)

- Canonical URL: https://www.gerhardmerk.de/bank-bailout-reverse-strengthening-the-strong-policy
- Post ID: 592791
- Modified: 2023-07-25T21:00:22+00:00
- Language: en

## Definition

Approach proposed by academics to deal with distortions in the financial system. According to this plan, failing banks should not be supported directly by the state - i.e. ultimately by the taxpayer. Instead, according to this plan, healthy, strong banks would receive a loan of capital from the state for a specific purpose. This would enable them to take over insolvent institutions in whole or in part. In this way, banks that take on fewer risks would be strengthened. - See resolvability, bank rescue, Sifi oligopoly, stability fund, European, zombie bank, forced convertible bond. 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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