Aufsätze Ökonomik

Aufsätze Pädagogik

Aufsätze Sozialethik


Prof. Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.

Abhandlungen über Johann Heinrich Jung-Stilling

Nachtodliche Belehrungen zur Ökonomik

Nachtodliche Belehrungen zu Persönlichkeiten

Nachtodliche Belehrungen zur Philosophie

Nachtodliche Belehrungen zur Theologie

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Capital ratio, prudential sometimes also called prudential capital resources quota

Under Basel I, eight percent equity and other equity-like items had to be held in relation to risk-weighted assets – to be determined by allocating assets to specific risk groups. While this 1988 Capital Accord contributed significantly to the harmonization of prudential regulations. However, it has been undermined – among other things, by financial innovations; cf. also on capital adequacy §§ 10 to 12 KWG. – In the wake of the financial crisis that followed the subprime crisis, it was suggested that capital adequacy requirements for banks should be linked to liquidity. In this way, the regulatory capital ratio could be increased by a factor calculated with a view to liquidity, maturity matching and the bank’s systemic risk for the market as a whole. Under this proposal, the more an institution would have financed longer-term assets on a short-term basis, the more its capital requirements would increase. Among other things, this would also have the advantage that capital adequacy would have to be increased during a bull market because maturity matching is highest at that time. This in turn would inevitably slow down leverage and the bull market. – In principle, the best way to regulate the financial market is to leave liability with the banks. Therefore, all national and international provisions to increase capital ratios and establish appropriate buffers are to be welcomed. – See investment liability, bank size, Basel III, Capital Requirements Directive, Cook ratio, capital adequacy, capital buffers, variable, Financial Soundness Indicators, capital buffers, countercyclical, Tier 1 capital, leverage ratio, Liikanen Report, liquidity buffers, mark-to-funding approach, moral hazard, procyclicality, risk buffers, stabilizers, automatic, ultimate factoring, waiver rule, mandatory convertible bond. – Cf. ECB Monthly Report of May 2001, p. 66, BaFin Annual Report 2003, p. 37 f. (with reference also to the consideration of unexpected losses), ECB Monthly Report of January 2005, p. 54, Deutsche Bundesbank Monthly Report of December 2006, p. 69 ff. (very detailed presentation of the requirements under Basel II), BaFin Annual Report 2006, p. 43 f. (efforts to achieve a uniform definition of regulatory capital), BaFin Annual Report 2008, p. 55 (amendment of capital requirements), BaFin Annual Report 2009, p. 10 (Basel Committee discusses details of a new regulation) BaFin Annual Report 2011, pp. 63 ff. (detailed report on progress in harmonizing the ratio within the EU), pp. 154 f. (decisions by EU finance ministers to build up a capital buffer), Cf. Financial Stability Report 2012, pp. 38 f. (asset productivity of German institutions since 2002; overview), Monthly Report of the Deutsche Bundesbank of May 2013, pp. 59 ff. (regulatory capital in the wake of Basel III, p. 61: overview).

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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