Another factor is that credit risks can be intercepted better in the continental universal banking system. Given the slight fluctuations in property prices, slumps in credit resulting from dwindling collateral are also unlikely here. IV The keyword ‘contagion’ undoubtedly belongs on the agenda, too.
The worldwide potential for contagion has certainly increased over the past few decades, although it is always difficult to draw a clear dividing line between contagion effects and shortcomings in policy. The individual economies are becoming increasingly integrated internationally. Above all, the rapid dismantling of restrictions in foreign exchange and financial transactions has brought the markets closer together.