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Loss-credit relation

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Rule of thumb calculated in the USA in connection with the subprime crisis, according to which banks reduce new loans to be granted by ten USD for a loss of one USD. In the case of institutions operating with a very high proportion of borrowed capital, this ratio was often even higher. No reliable figures are available for Germany. – See credit crunch.

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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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