Bad Banks: The German scheme.

Bad Bank; Bankenpolitik; Bankenkrise; Deutschland;

The German bad bank scheme.

The German scheme of creating national SPV-loopholes for structured assets is a relatively expensive way to 'buy time' for troubled banks and runs counter to the task of a more uniform and transparent international regulatory framework. It also does not provide a major incentive for a recapitalisation of banks, as the expected advantage of the envisaged new class of preferential shares over existing regular shares tends to be at best small.Bad Bank; Bankenpolitik; Bankenkrise; Deutschland;