The German Bank Restructuring Act : An Economic Perspective
Series
German Working Papers in Law and Economics
Type
working paper
Date Issued
2011
Author(s)
Abstract
The paper explores incentives created by the German Bank Restructuring Act for investors holding assets in systemically important banks (SIBs)..
Its purpose is to examine consequences that follow for risk choices of SIBs, as well as for Germany's financial system..
Applying the analytical model of Stigliz (1990) the study reinforces the view that regulators can induce SIBs to forego.
risks by curbing promises of systemic support. Adverse consequences result from the fact that the.
Bank Restructuring Act is affecting dierent groups of SIB-investors heterogeneously. This leads to macroeffects that bear potentials to offset risk reductions achieved on the micro level.
Its purpose is to examine consequences that follow for risk choices of SIBs, as well as for Germany's financial system..
Applying the analytical model of Stigliz (1990) the study reinforces the view that regulators can induce SIBs to forego.
risks by curbing promises of systemic support. Adverse consequences result from the fact that the.
Bank Restructuring Act is affecting dierent groups of SIB-investors heterogeneously. This leads to macroeffects that bear potentials to offset risk reductions achieved on the micro level.
Language
English
Keywords
Bailout Guarantees
Banking Act
Bank Reorganization Act
Bank Restructuring Act
Bank Restructuring Fund Act
Financial Markets
Risk
Systemically Important Institutions
HSG Classification
contribution to scientific community
HSG Profile Area
SHSS - Kulturen, Institutionen, Maerkte (KIM)
Refereed
No
Publisher
Berkeley Electronic Press
Publisher place
Berkeley
Number
16
Subject(s)
Division(s)
Eprints ID
207850
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German Bank Restructuring Act(1).pdf
Size
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Format
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