# Margin pressure

- Canonical URL: https://www.gerhardmerk.de/margin-pressure
- Post ID: 594122
- Modified: 2023-07-25T21:01:25+00:00
- Language: en

## Definition

Unless otherwise defined, this is understood to mean a low level of earnings in the banking sector of a country, triggered primarily by strong competition between institutions. - However, if banks are hardly ever cost-covering in their traditional line of business, experience shows that they turn to more risky engagements. This increases their vulnerability to shocks of all kinds. - This fact leads to the conclusion that a small number of coordinated institutions (collusive oligopoly: an oligopoly acting in tacit agreement; the large providers agree on prices) are advantageous for a country's financial market. Canada is cited as an example. The five large nationwide financial institutions are well-capitalized universal banks that offer everything from loans and securities trading to asset management from a single source. They were barely touched by the subprime crisis and subsequent financial crisis. - See bank fees, brokerage, billing, deduction, charge, G-Sifi, market collusion, market clearing, banking, flat rate. - Cf. Financial Stability Report 2012, p. 50 f. (changed business policy in the face of margin pressure). 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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