State aid to banks
Einde inhoudsopgave
State aid to banks (IVOR nr. 109) 2018/13.8.1:13.8.1 Why is this a relevant characteristic?
State aid to banks (IVOR nr. 109) 2018/13.8.1
13.8.1 Why is this a relevant characteristic?
Documentgegevens:
mr. drs. R.E. van Lambalgen, datum 01-12-2017
- Datum
01-12-2017
- Auteur
mr. drs. R.E. van Lambalgen
- JCDI
JCDI:ADS588259:1
- Vakgebied(en)
Financieel recht / Europees financieel recht
Mededingingsrecht / EU-mededingingsrecht
Toon alle voetnoten
Voetnoten
Voetnoten
Since point 32 speaks of “organic growth”, it might be useful to clarify this term. Organic growth can be contrasted with inorganic growth. Inorganic growth is due to mergers and acquisitions, whereas organic growth is generated by an increased output (which, in the case of banks, means increased lending).
Deze functie is alleen te gebruiken als je bent ingelogd.
A growth limitation usually takes the form of a cap on new lending and on new deposits. A growth limitation is less far-reaching than downsizing. Downsizing reduces the bank’s market presence, whereas a cap only limits the possibility for the bank to expand its market presence.
Point 32 of the Restructuring Communication provides that divestments may sometimes generate adverse consequences, in which case the limitation of organic growth may be preferred to divestments.1