Its elements include a significant extension of supervisory powers, especially the possibility of transferring financial assets of a distressed bank to a private bank or to a public bridge bank. Remaining parts can then be wound up during insolvency proceedings, if necessary.
Corporate profits rose significantly last year. [18] During this period of unexpected shocks, the financial cycle continued to expand. The financial cycle differs from the business cycle: during the expansion phase, lending goes up and asset prices rise, risk appetite increases; when it reaches the downward swing, this can hit the real economy hard. Lending has risen sharply in recent years.