In this paper, we investigate the claim that German banks are special compared to banks in other industrialised economies. We show that banks are of particular importance to the German economy - as financial intermediary, as lender to the corporate sector, and as part of the corporate governance...

The aim of this paper is to assess how German savings banks adjust capital and risk under capital regulation. We estimate a modified version of the model developed by Shrieves and Dahl (1992). In comparison to former research, we impose fewer restrictions with regard to the impact of regulation...

We bring to bear a hand-collected dataset of executive turnovers in U.S. banks to test the efficacy of market discipline in a bdquo;laboratory setting‟ by analyzing banks that are less likely to be subject to government support. Specifically, we focus on a new face of market discipline:...

I analyze the optimal design of banking supervision in the presence of cross-border lending. Cross-border lending could imply that an individual bank failure in one country could trigger negative spillover effects in another country. Such cross-border contagion effects could turn out to be...

This paper analyzes the effect of the business cycle on the regulatory capital buffer of German local banks in the period 1993-2004. The capital buffer is found to fluctuate countercyclically over the business cycle. The fluctuation is stronger for public banks than for cooperative banks....

We examine the indicator property of the monetary indicator for inflation. Using a P*-model, Svensson (2000) shows theoretically that the relationship between these two variables is rather tenuous. The present study employs empirical evidence on the relations in his model to quantify its...

We examine the indicator property of the monetary indicator for inflation. Using a P*-model, Svensson (2000) shows theoretically that the relationship between these two variables is rather tenuous. The present study employs empirical evidence on the relations in his model to quantify its...

The extensive public support measures for the financial sector have been key for the management of the current financial crisis. This paper gives a detailed description of the measures taken by central banks and governments and attempts a preliminary assessment of the effectiveness of such...