Kapitaldækningsregler

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Kapitaldækningsregler

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Title: Kapitaldækningsregler
En retsøkonomisk analyse af kapitaldækningsreglernes indvirkning på danske bankers adfærd og behovet for lovændringer - i lyset af den finansielle krise 2007
Author: Hellen, Thomas
Abstract: Since the beginning of the financial crisis in 2007, it has been heavily discussed whether the regulatory framework meets its purpose of securing safety and soundness in the financial sector. This thesis contains an analysis on existing capital adequacy rules in Danish law and the strategic, behavioural impact they have on Danish banks. Moreover, it is discussed whether the rules are proportionate with the costs of the rules along with the need for regulatory initiatives. The first part of the thesis identifies the capital adequacy rules and elucidates the regulation under which banks act. During the financial crisis a number of Danish banks have been in the spotlight of Finanstilsynet, the Danish Financial Service Authority. The cases indicates a shift where Finanstilsynet emphasizes the importance of the individual solvency adequacy in pillar 2 of the regulatory framework and very often demands solvency above the minimum of 8 percent. Thereafter the relations to European law is described and finally the first part puts the capital adequacy rules in an international context where the Basel I and II guidelines are the essential ones. The new regulation based on Basel II is a flexible risk-based framework and the objective is to induce banks to implement advanced models in calculating their risk profile. The second part analyses the behaviour of banks in competing settings by the use of game theory. Even though the analysis show that banks are indeed induced to implement advanced methods only a few Danish banks have adopted them. Another heavy critique is the presence of regulatory arbitrage in both the former and the existing framework. The effect of regulatory arbitrage on financial stability is therefore analyzed. The third part discusses the costs and benefits from both rules and financial crises in general. From there the section proposes legislative enhancements which can further strengthen the financial stability. This includes more disclosure regarding the risk profiles of the banks and mitigation of interconnection and exposures towards one sector.
URI: http://hdl.handle.net/10417/826
Date: 2010-01-14
Pages: 74 s.
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