Recent evidences provoke broad rethinking of the role of banks in money creation. The authors argue that apart from the reserve requirement, prudential regulations also play important roles in constraining the money supply. Specifically, they study three Basel III regulations and theoretically...

We study how the Basel III regulations, namely the Capital-to-Assets Ratio (CAR), the Net Stable Funding Ratio (NSFR) and the Liquidity Coverage Ratio (LCR), are likely to impact banks’ profitability (i.e., ROA), capital levels and default. We estimate historical series of the new Basel III...

Commercial banks across the world have been implementing the Basel III accord, which is the most important international response to the 2007–2008 financial crisis. Particularly, the liquidity coverage ratio (LCR) introduced by the Basel III accord is the first global standard for banking...

We analyze whether, and if so by how much, stable funding would have contributed to the financial soundness of German banks in the time period between 1995 and 2013, before the Basel III liquidity regulation to address excessive maturity mismatches in the wake of the financial crisis via the Net...

We analyze whether, and if so by how much, stable funding would have contributed to the financial soundness of German banks in the time period between 1995 and 2013, before the Basel III liquidity regulation to address excessive maturity mismatches in the wake of the financial crisis via the Net...

We examine the effects of the revised Basel II rules on bank managers’ discretionary behavior, specifically income smoothing and loan loss provisioning. As the revised rules exert greater regulatory pressure on corporate than retail banking, we predict corporate bank managers to reduce...

The current standardized approach for assessing credit risk under Basel III depends on ratings assigned by credit rating agencies (CRAs). However, this approach presents three problems. First, the definitions of ratings used by CRAs to assess the likelihood of default and recovery rates are not...

Italy’s banks are struggling under high amounts of non-performing loans on their balance sheets and the Italian government is fighting with the European Commission over putting 50 billion Euro of problem loans into a bad bank, which needs funding of 10 billion Euro with public money....

This thesis combines five chapters, all of which have been motivated by the exciting and intense policy discussions that have been dominating the political and economic landscape in recent years. It covers European bank regulation and its effects on financial stability and economic welfare, the...

The recent global financial crisis (GFC) of 2007-2008 revealed several critical shortcomings in the existing Basel II international banking supervisory framework. The Basel Committee adopted a set of reform measures inclusive of additional solvency and liquidity rules, known as "Basel III"....

Die vorliegende Arbeit thematisiert die Finanzierungsmodelle von Public-Private-Partnership-Projekten (PPP) und deren Refinanzierung durch die Kapitalgeber. Dabei wurden zwei zentrale Fragestellungen thematisiert. Erstens: Führen PPP­Projekte zu einer Verschuldung der öffentlichen Hand und...

In response to the global financial crisis of 2007-2009, risk-based capital requirements have been reinforced in the new Basel III Accord to counter excessive bank risk-taking behavior. However, prior theoretical as well as empirical literature that studies the impact of risk-based capital...

The current standardized approach for assessing credit risk under Basel III depends on ratings assigned by credit rating agencies (CRAs). However, this approach presents three problems. First, the definitions of ratings used by CRAs to assess the likelihood of default and recovery rates are not...

On 3 December EY hosted a SUERF conference on banking reform with Sir Howard Davies, the Chairman of RBS, and Dame Colette Bowe, the Chairman of the Banking Standards Board, as the two keynote speakers. Professor David Miles (Imperial College) gave the SUERF 2015 Annual Lecture on Capital and...

We provide an assessment of the Basel Committee on Banking Supervision (BCBS) proposal to restrict the internal ratings-based approach on bank risk and to introduce risk-weighted asset floors. If well enforced, risk-sensitive capital regulation results in a more efficient credit allocation...

The global financial crisis shattered the conventional wisdom about how financial markets work and how to regulate them. Authorities intervened to stop the panic-short-term pragmatism that spoke volumes about the robustness of mainstream economics. However, their very success in taming the...

Das dritte Kapitel untersucht die Prozyklizität der Eigenkapitalvorschriften von Banken. Die Analyse zeigt deren optimale Anpassung an adverse Schocks, sodass die Finanzstabilität gesichert und die Investitionstätigkeit der Realwirtschaft nicht behindert wird.