In the case of a bank, the possibility of at least partially offsetting losses from non-performing loans (bad-debt losses) against tax liabilities. – The tax law provisions on this vary from country to country, but are restrictive overall. It is assumed that banks will be more lax in granting loans if it is clear from the outset that part of the losses can be offset against tax (moral hazard). – On the other hand, the different legal frameworks lead internationally active banks to disburse risky loans at branches in the state where a generous write-off of any losses via tax is possible. – See profit taxation.

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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/

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