Diagnosis, Therapy and Prophylaxis of Banking Crises - Challenges in Financial Supervision and Monetary Policy

15 Pages Posted: 7 Mar 2007

See all articles by Stefan Stein

Stefan Stein

University of Bochum - Department of Finance and Banking

Christian Brütting

University of Bochum

Stephan Paul

Ruhr University of Bochum - Faculty of Economics

Andreas Horsch

Freiberg University

Date Written: April 2003

Abstract

The difficult situation of the German banking sector — at least according to the basic tenor of many contributions — is raised to the threatening ranks of the "disease" the Japanese banking industry is suffering from. Such a statement labelling "German banks — Turning Japanese" is the very issue of a Merrill Lynch study of equal title. Crises of individual German banks can not be denied, and it is also visible that the size and number of affected institutes in the recent past has increased. However, this paper finds weighty differences beyond the revealed symptoms between Japan's system crisis and the structural crisis in German banking. With regard to possible therapies, the authors favour a stronger strategic focussing to remove earnings-related problems of German banks.

Keywords: bank crisis, German banks, japanese fever, system crisis

JEL Classification: G10, G21

Suggested Citation

Stein, Stefan and Brütting, Christian and Paul, Stephan and Horsch, Andreas, Diagnosis, Therapy and Prophylaxis of Banking Crises - Challenges in Financial Supervision and Monetary Policy (April 2003). Available at SSRN: https://ssrn.com/abstract=967300 or http://dx.doi.org/10.2139/ssrn.967300

Stefan Stein (Contact Author)

University of Bochum - Department of Finance and Banking ( email )

Bochum, DE 44780
Germany

Christian Brütting

University of Bochum ( email )

Universitätsstraße 150
Bochum, NRW 44780
Germany

Stephan Paul

Ruhr University of Bochum - Faculty of Economics ( email )

Ruhr University of Bochum
Faculty of Economics
Bochum, DE 44780
Germany

Andreas Horsch

Freiberg University ( email )

Freiberg, D-09599
Germany

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