Compared to the U.S., the euro area has been underperforming in the wake of the Great Financial Crisis (GFC). This holds especially true for peripheral euro area economies. Whereas the U.S. is characterised by a financial system dominated by arms' length (capital-market oriented) interaction...

Although banks are required to document their equity capital for loans, corporate bonds, and other receivables, they are currently exempted from the procedure when investing in government bonds: they enjoy an 'equity capital privilege.' As part of the Basel III regulatory framework redraft, the...

Im Rahmen der Überarbeitung des Regulierungswerkes Basel III soll das geltende Eigenkapitalprivileg abgeschafft werden, um Ausfallrisiken von Staaten und Banken zu entflechten. Aktuell müssen Banken für Kredite, Unternehmensanleihen und andere Forderungen Eigenkapital nachweisen, nicht aber...

In this policy brief, we argue that the financial innovations triggered by the FinTech industry have the potential to affect the transmission of monetary policy as well as the informational content of important monetary indicators. The growing FinTech industry could contribute substantially to...