Arbeitspapier
Do we need a separate banking system? An assessment
Motivated by the current discussion on different separate banking systems, we provide an overview of the different systems, question them and outline their effect on systemic stability and the German banking sector. The results show that the various separate banking systems only play a minor role in reducing and limiting systemic risk. They only marginally contribute to solving conflicts of interest and can even be detrimental to banking business diversification. A separate banking system could, however, facilitate banking supervision by reducing the banking system's complexity. Furthermore, credible threats to not support investment banks with federal resources in times of crisis could lead to a more adequate incentives structure of suppliers of equity and outside capital. More efficient measures to further reduce systemic risk in the financial sector should, however, use different levers, such as additional minimum regulatory capital requirements.
- Language
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Englisch
- Bibliographic citation
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Series: ZEW Discussion Papers ; No. 13-011
- Classification
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Wirtschaft
Financial Crises
General Financial Markets: Government Policy and Regulation
Investment Banking; Venture Capital; Brokerage; Ratings and Ratings Agencies
- Subject
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Banking Regulation
Commercial and Investment Banking
Financial Crises
- Event
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Geistige Schöpfung
- (who)
-
Lang, Gunnar
Schröder, Michael
- Event
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Veröffentlichung
- (who)
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Zentrum für Europäische Wirtschaftsforschung (ZEW)
- (where)
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Mannheim
- (when)
-
2013
- Handle
- URN
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urn:nbn:de:bsz:180-madoc-331742
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Lang, Gunnar
- Schröder, Michael
- Zentrum für Europäische Wirtschaftsforschung (ZEW)
Time of origin
- 2013