# Raroc (also used in German)

- Canonical URL: https://www.gerhardmerk.de/raroc-also-used-in-german
- Post ID: 593780
- Modified: 2023-07-25T21:13:32+00:00
- Language: en

## Definition

Short term for loans to companies where the bank includes the risk in particular in the profit planning (from the English Risk Adjusted Return On Capital). Medium-sized companies - 3.3 million in Germany with roughly 21 million jobs - with a low equity base therefore have to pay higher interest rates for loans. - See probability of default, credit rating class, spread of conditions, credit absorption, credit risk premium, Mittelstandsbank, adverse selection, riskignorance, interest rate allocation function. 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