# Big bank bonus

- Canonical URL: https://www.gerhardmerk.de/big-bank-bonus
- Post ID: 593433
- Modified: 2023-07-25T20:59:22+00:00
- Language: en

## Definition

As a rule, big banks have - lower unit costs because fixed costs (capacity costs) are spread over a larger output volume, - better utilization of supply capacities, - more prudent risk management because specialized staff can assess individual credit risks in particular, and - they can refinance themselves more cheaply. For this reason, large banks are able to grant cheaper loans than smaller institutions. - Above a certain size, however, these advantages increasingly dwindle; the management of business becomes cumbersome and confusing; schematic procedures increasingly determine business conduct, contact with the customer on the spot is lost, and the susceptibility to a crash increases. - See actuary, bank size, optimal, assertion strategy, downsizing, Gibrat rule, gigabank, size confidence, G-Sifi, megamania, multi-boutique approach, Penrose theorem, feedback mechanism, subsidiarity principle, too big to save principle. - Cf. 2010 Annual Report of BaFin, p. 123 f. (previous crediting benefits for large inter-institutional exposures no longer apply). 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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