Strategies adopted by banks to at least partially evade supervision by the relevant supervisory authority by exploiting legal loopholes or by relocating operations to faraway foreign countries. Reasons for avoidance can be, above all, – secrecy of prohibited business practices, – lack of confidence in the activities of the supervisory authority, and here above all doubts as to the secrecy of the employees, and – their alleged vexatious bearing. – It is undisputed that the tighter the density of regulation in the financial market, the stronger the incentives for regulatory avoidance and thus regulatory arbitrage. – See Acting in Concert, investor protection, regulators, committee mania, impact studies, banking regulation paradox, calls for advice, enforcement, five hundred rule, same business – same rule principle, harmonization, international business company, managed bank, offshore financial centers, audit, defect-free, regulatory density, regulatory mania, straitjacking, degree of transparency, overregulation. – Cf. 2004 Annual Report of BaFin, pp.
32, p. 43 (overview of the various committees).

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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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