# Balance sheet channel

- Canonical URL: https://www.gerhardmerk.de/balance-sheet-channel
- Post ID: 594920
- Modified: 2023-07-25T20:59:59+00:00
- Language: en

## Definition

In connection with monetary policy, the effect of a central bank policy measure on the value of a company. Rising interest rates generally CETERIS PARIBUS darken the business prospects and therefore also reduce the value of a company. The price of the company's shares declines, as does the price of its bonds. The value of any collateral is reduced, and with it the possibility of taking out loans. - See accelerator, financial, bear market, cyclical, hedge fund risks, credit risk, value, cyclical. 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