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.
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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/