Risk transformation is one of the three functions, which transfer financial markets and financial establishment ions in a national economy. (The remaining two functions are lot size transformation and period transformation). The different risk readiness of the debtors (private people, enterprise, the state) and the saver are brought by the financial markets in agreement.
In the context of the risk transformation it task and function of the banks are to accept such risks. They are obligated however by the defaults of the Federal Institution for supervision of financial service (BaFin) to examine before conclusion of the contract the future debtor for its soil quality or credit-worthiness and/or to supervise the assigned credits permanently for their probability of failure. Risk of the bank is it to become by the loss of debtors themselves illiquide.
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