If a single apple farmer achieves an extraordinary yield, this is very profitable for him. However, if all apple growers harvest a record crop at the same time, this is a misfortune. Because now the prices for apples sink into the bottomless pit; the individual farm no longer covers its costs and the market collapses with far-reaching consequences. – In terms of the financial market, one derives from this the need for macroprudential supervision. Obviously, it is not enough to regulate the individual bank in such a way that it remains resilient. It is also necessary to look at the interplay of institutions and to consider possible systemic risks. – See contagion effects, supervision, macroprudential, Financial Stability Committee, banking supervision, European, banking supervision, European, fees, Banking Supervision Committee, deflation, ugly, denaturation premium, European Systemic Risk Council, ESCB Macroprudential Research Network, financial crisis, set-aside premium, concurrency problem, macroprudential, risk, systemic, solvency supervision, spider web model, central credit register, cyclicality.

Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent!
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/

Kommentare geschlossen.