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Banks' regulatory capital buffer and the business cycle: evidence for German savings and cooperative banks

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dc.creator Stolz, Stéphanie
dc.creator Wedow, Michael
dc.date 2005
dc.date.accessioned 2013-10-16T07:06:34Z
dc.date.available 2013-10-16T07:06:34Z
dc.date.issued 2013-10-16
dc.identifier http://hdl.handle.net/10419/19740
dc.identifier ppn:49845763X
dc.identifier RePEc:zbw:bubdp2:4262
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/10419/19740
dc.description This paper analyzes the effect of the business cycle on the regulatory capital buffer of German savings and cooperative banks in the period 1993-2003. The capital buffer is found to fluctuate anticyclically over the business cycle. The fluctuation is stronger for savings banks than for cooperative banks, as, for savings banks, risk-weighted assets fluctuate more strongly with the business cycle. Further, low-capitalized banks do not catch up with their wellcapitalized peers. The gap between low-capitalized and well capitalized banks even widened over the observation period. Finally, low-capitalized banks do not decrease risk-weighted assets in a business cycle downturn by more than well-capitalized banks. This finding seems to imply that their low capitalization does not force them to retreat from lending.
dc.language eng
dc.relation Discussion Paper, Series 2: Banking and Financial Supervision 2005,07
dc.rights http://www.econstor.eu/dspace/Nutzungsbedingungen
dc.subject G21
dc.subject G28
dc.subject ddc:330
dc.subject Capital Regulation
dc.subject Bank Capital
dc.subject Business Cycle Fluctuations
dc.subject Eigenkapitalvorschriften
dc.subject Bankenliquidität
dc.subject Konjunktur
dc.subject Sparkasse
dc.subject Kreditgenossenschaft
dc.subject Makroökonomischer Einfluß
dc.subject Schätzung
dc.subject Deutschland
dc.title Banks' regulatory capital buffer and the business cycle: evidence for German savings and cooperative banks
dc.type doc-type:workingPaper


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