The demand that universal banks be completely abolished and instead only professionally oriented banks (run by self-regulatory professional organizations) be permitted. – The fact that the institutions, which are restricted to a single sector of the economy, are able to raise and allocate capital for their sector at all is based on the assumption that the supply of capital and the demand for capital in the respective sector always coincide. However, this is, if at all, at most sporadically, briefly, coincidentally so. – To refute this objection, proponents of the specialized banking system point to the possibility that the institutions of individual occupational sectors may interconnect. However, this would slow down and make the movement of capital more expensive (would make credits dearer) due to the intervention of several entities. – It was proposed to allow the professional banking system to issue payment instruments. This was intended to address the difficulties in raising capital. However, this amounts to a dangerous juxtaposition of two central banks. This, in turn, is highly questionable from a constitutional point of view alone. – The idea of transforming the banking landscape into an industry-based specialized banking system stems from the concept of a professional social order, which was developed primarily as an anti-concept to totalitarian state systems such as National Socialism and Communism. To put it into practice, however, is hardly recommendable today. – See money, private.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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