The key concept underlying the Basel II framework for risk measurement and corresponding equity capital standards is that the existing regulations pertaining to credit risk will be individualised through reference to the internal ratings of banks. In accordance with the regulatory guidelines,...

In Germany, more than 95% of the credit institutions report their regulatory capital requirements for counterparty risk by means of the credit risk standardized approach (CRSA) instead of the more sophisticated internal rating based approach (IRBA). Though the CRSA allows a partially risk...

The eco-efficiency approach (e.g. Schaltegger and Sturm, 1990 and Holliday et al., 2002) suggest an outclassing shareholder value for sustainable investments as a result of more efficient risk and resource management, broader consumer acceptance and legitimation, fewer stakeholder conflicts, a...

Although the aims of the proposed new CCD are positive, the current draft is unlikely to help to fulfil them. The regulations that are intended to protect consumers seem to work against their interests. They would not make the market more transparent or effective, increase the level of...