The aim of this paper is to assess how German savings banks adjust capital and risk under capital regulation. We … coordination of capital and risk adjustments depends on the amount of capital the bank holds in excess of the regulatory minimum … while simultaneously lowering risk. In contrast, banks with high capital buffers try to maintain their capital buffer by …

fluctuation is stronger for savings banks than for cooperative banks, as, for savings banks, risk-weighted assets fluctuate more … not decrease risk-weighted assets in a business cycle downturn by more than well-capitalized banks. This finding seems to …

regulation, recovery and resolution, and risk culture. …

models, the measurement and indicators of systemic risk, macroprudential tools and their effectiveness; and to identify …

to an exogenous shock to credit risk in the German economy, loans subject to modelbased, time-varying capital charges …

seeks to control the amount of tail risk that large banks take in their trading books. However, banks around the world … whether the Basel framework allows banks to take substantive tail risk in their trading books without a capital requirement … regarding the treatment of tail risk. …

sovereign debt exposures and the implications of sovereign exposures for bank risk. Our main findings are as follows. First … impact of sovereign bond holdings on bank risk. This result could indicate the widespread absence of marking-to-market for …