Information costs and regulatory barriers are the main distinguishing features of international financial markets as compared to national financial markets. This paper presents a simple model of the impact of these factors on banks' cross-border activities and provides empirical evidence. Our...

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). This paper contributes to the literature in three ways. First, we test the capital buffer theory...

We analyze the dynamics of banks' regulatory capital ratios. Using monthly data of regulatory capital ratios for a subset of large German banks, we estimate the target level and the adjustment speed of the capital ratio for each bank separately. We find evidence that, first, there exists a...

In contrast to earlier field studies, we survey German public savings banks on their management of capital. We find that the most important determinants of the savings banks? target capital ratio are risk aversion, the desired credit growth and profitability. Savings banks prefer to manage the...

The paper analyses the potential impact of stock market developments on lending behaviour from different perspectives. First we scrutinize the impact of stock market movements on the banks' and on the borrowers' balance sheets. Subsequently we estimate aggregate credit supply and demand...

Developments in risk-transfer instruments and risk management techniques in the last two decades have fundamentally changed how banks manage their assets and liabilities. In this document we show that, for all three sectors of German universal banks (private commercial banks, savings banks, and...

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...

Der Gesetzgeber der Bundesrepublik Deutschland hat im §6 KWG die Zielsetzung der Beaufsichtigung von Kreditinstituten festgelegt. Danach soll das Bundesaufsichtsamt Mißständen in der Kreditwirtschaft entgegenwirken [13, S. 53ff]. Um diese Zielvorgabe zu erreichen, baute das Bundesaufsichtsamt...

Vorliegende Studie analysiert die Determinanten der Eigenkapitalrendite deutscher Sparkassen. Die Untersuchung erfolgt auf Basis eines Paneldatensatzes, der die Bilanzdaten sowie regulatorischen Kenngrößen aller Sparkassen in Deutschland zwischen 1999 und 2007 beinhaltet. Die Ergebnisse der...