A state-subsidized bank called for by politicians in Germany with the sole purpose of granting loans to medium-sized enterprises. – However, the poor equity capitalization of SMEs by international standards is more likely to be achieved through fiscal policy measures such as profit tax relief than through a Mittelstandsbank, which serves bad risks with the same conditions as good counterparties and thus prevents the allocation of capital to the best host (most favorable allocation of scarce resources). – See bad bank, credit rating class, credit crunch, credit mediator, adverse selection, rate of credit customers, risk adjustment, structural upheaval.
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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/