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)
Nach Zinssenkung: EZB-Entscheidung Chance oder Risiko?
Die EZB hat den Leitzins gestern Nachmittag seit fast fünf Jahren erstmals wieder gesenkt. Warum der Zinssatz so zentral ist und welche Auswirkungen das haben könnte, bespricht IW-Direktor Michael Hüther im Interview mit dem Deutschlandfunk.
IW
EZB: Vorsicht vor zu niedrigen Leitzinsen
Die Geldhüter aus Frankfurt senken den Leitzins. Doch die Experten wiegen sich in falscher Sicherheit: Viele Trendindikatoren sind nach wie vor hoch, die Inflation könnte schnell wieder steigen. Vorsicht ist geboten.
IW