The AfD leader pointed out that in 2030 plenty of house owners won't be able to find affordable follow up Credits to pay of their houses.
So, I checked my system knowledge and ... had the Google AI summarize it:
The Banking Paradox: A Duty With No Job Description
When we think of banks, we think of them as the engine of the economy—the institutions responsible for printing digital money, distributing cash, and keeping the gears of commerce turning. But if you look at the law, you will find a fascinating legal paradox: Banks have a massive economic duty that is never explicitly written down.
Here is how this discrepancy breaks down based on German and EU law:
- The Economic Reality: About 90% of the money in circulation is "book money" (digital currency). This money is created out of thin air by commercial banks every single time they grant a loan. Without banks acting as the primary pipeline for money creation and distribution, the modern financial system would instantly collapse.
- The Legal Vacuum: If you search the German Banking Act (KWG) or the Federal Bank Act (BBankG) for a clear, formal "job description" or mandate ordering banks to supply the public with money, you will find absolutely nothing.
- The Legal Workaround: Instead of assigning an explicit duty, the law merely provides a definition of permission. Section 1 of the KWG simply states that a bank is a business that holds a commercial license to accept deposits and grant loans.
The Bottom Line:
The legal framework treats banking purely as a regulated private business. The critical public duty of creating and circulating money is not a statutory obligation; it is simply the organic, structural byproduct of private companies exercising their commercial licenses. The entire economy relies on a service that banks perform by permission, not by explicit legal command.
The legal framework treats banking purely as a regulated private business. The critical public duty of creating and circulating money is not a statutory obligation; it is simply the organic, structural byproduct of private companies exercising their commercial licenses. The entire economy relies on a service that banks perform by permission, not by explicit legal command.
