A Critical Evaluation
New Bank Equity Capital Rules in the European Union
IW policy paper
Institut der deutschen Wirtschaft (IW)
A Critical Evaluation
This paper presents and critically evaluates the bank capital requirement rules proposed by the European Union – the capital requirements directive CRD IV and the capital requirements regulation CRR. First, the rules of the Basel III accord about equity capital standards of banks are briefly described. Second, the EU proposal based on Basel III is presented. The article differentiates between rules fully in line with Basel III, modified rules, and new rules not covered by Basel III. Third, the EU proposals are critically evaluated. The paper concludes that the proposals lead in the right direction, but there is still much room for improvement. In fact, some of the planned rules should be urgently revised. Above all, risk weights for member state government bonds must be introduced, liquidity requirements should not overly favour government bonds, and member states should be able to set capital requirements which are greater than 18% of risk-weighted assets.
Felix Kövener / Jürgen Matthes / Thomas Schuster: New Bank Equity Capital Rules in the European Union – A Critical Evaluation
IW policy paper
Institut der deutschen Wirtschaft (IW)
33. Finanzmarkt Round-Table: De-Industrialisierung – Gefahr für den Finanz- und Wirtschaftsstandort Deutschland?
Das Institut der deutschen Wirtschaft, die DekaBank und die Börsen-Zeitung laden Sie zum Finanzmarkt Round-Table am Montag, den 29. April 2024 von 10:30 bis 12:30 Uhr ein. Der Round-Table findet als Online-Veranstaltung statt.
IW
Deindustrialisierung: Aktuelle Entwicklungen von Direktinvestitionen
Obwohl sich die Situation bei den Energiekosten nach den Turbulenzen der letzten Jahre wieder etwas entspannt hat, sehen wir weiterhin hohe (Netto-)Abflüsse von Direktinvestitionen aus Deutschland. Das deutet darauf hin, dass die Perspektiven am Standort ...
IW