Financial Market Regulation in Germany - Capital Requirements of Financial Institutions
This paper examines banks’ capital adequacy regulation in Germany. It reviews the capital requirement regulation in Germany from a historical perspective, and identifies general trends. Such analysis allows pointing out some severe problems associated with the current approaches to capital requireme...
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| Format: | Article |
| Language: | English |
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Associazione Economia civile
2015-04-01
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| Series: | PSL Quarterly Review |
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| Online Access: | https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/12468 |
| _version_ | 1828042617919635456 |
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| author | Daniel Karl Detzer |
| author_facet | Daniel Karl Detzer |
| author_sort | Daniel Karl Detzer |
| collection | DOAJ |
| description | This paper examines banks’ capital adequacy regulation in Germany. It reviews the capital requirement regulation in Germany from a historical perspective, and identifies general trends. Such analysis allows pointing out some severe problems associated with the current approaches to capital requirement regulation. Among the recent trends is the gradual softening of the eligibility criteria for regulatory equity, and the reliance on internal risk models for the determination of risk weights. While the former trend has been reversed after the crisis, the latter is still pursued. The problems inherent in using internal risk models to determine capital requirements are discussed in relation to changes due to the introduction of Basel II.5 and Basel III.
JEL codes: G18, G28, N24
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| first_indexed | 2024-04-10T17:32:07Z |
| format | Article |
| id | doaj.art-273d4cba053a4630860c9528b300e626 |
| institution | Directory Open Access Journal |
| issn | 2037-3635 2037-3643 |
| language | English |
| last_indexed | 2024-04-10T17:32:07Z |
| publishDate | 2015-04-01 |
| publisher | Associazione Economia civile |
| record_format | Article |
| series | PSL Quarterly Review |
| spelling | doaj.art-273d4cba053a4630860c9528b300e6262023-02-03T16:43:25ZengAssociazione Economia civilePSL Quarterly Review2037-36352037-36432015-04-016827210.13133/2037-3643/12468Financial Market Regulation in Germany - Capital Requirements of Financial InstitutionsDaniel Karl Detzer0Berlin School of Economics and Law, Institute for International Political Economy (IPE)This paper examines banks’ capital adequacy regulation in Germany. It reviews the capital requirement regulation in Germany from a historical perspective, and identifies general trends. Such analysis allows pointing out some severe problems associated with the current approaches to capital requirement regulation. Among the recent trends is the gradual softening of the eligibility criteria for regulatory equity, and the reliance on internal risk models for the determination of risk weights. While the former trend has been reversed after the crisis, the latter is still pursued. The problems inherent in using internal risk models to determine capital requirements are discussed in relation to changes due to the introduction of Basel II.5 and Basel III. JEL codes: G18, G28, N24 https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/12468Banking RegulationCapital AdequacyRisk ModelsGermany |
| spellingShingle | Daniel Karl Detzer Financial Market Regulation in Germany - Capital Requirements of Financial Institutions PSL Quarterly Review Banking Regulation Capital Adequacy Risk Models Germany |
| title | Financial Market Regulation in Germany - Capital Requirements of Financial Institutions |
| title_full | Financial Market Regulation in Germany - Capital Requirements of Financial Institutions |
| title_fullStr | Financial Market Regulation in Germany - Capital Requirements of Financial Institutions |
| title_full_unstemmed | Financial Market Regulation in Germany - Capital Requirements of Financial Institutions |
| title_short | Financial Market Regulation in Germany - Capital Requirements of Financial Institutions |
| title_sort | financial market regulation in germany capital requirements of financial institutions |
| topic | Banking Regulation Capital Adequacy Risk Models Germany |
| url | https://rosa.uniroma1.it/rosa04/psl_quarterly_review/article/view/12468 |
| work_keys_str_mv | AT danielkarldetzer financialmarketregulationingermanycapitalrequirementsoffinancialinstitutions |