Absorptive capacity
In terms of the financial market, the ability of consumers to absorb offered products into their portfolios. If the supply of securities exceeds investor demand to a large extent, this is also referred to as a market glut. – Around 1990, the term was coined to describe the ability of an entity, and of a bank in particular, to assimilate new knowledge from outside and to merge it with knowledge from day-to-day business operations (the ability of a firm to recognize the importance of new information, assimilate it, and apply it to ongoing business operations), often referred to in this sense as innovation absorption capacity. Absorptive capacity is also often referred to in relation to central banks and regulators; although there is no lack of criticism that sometimes too much of a good thing (clearly too much) is done here. – See Centre of Excellence, Push-through, European Supervisor Education Initiative, Research, Research Network on Inflation Persistence and Pricing Behavior, Research Partnership, International Monetary Policy Research Forum, Center of Excellence, Research Coordination Committee.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
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