How does the 'Bad Bank' Concept Influence the Commercial Banks' Ability and Willingness to Increase Commercial Lending in Germany

Business & Finance, Finance & Investing, Finance
Cover of the book How does the 'Bad Bank' Concept Influence the Commercial Banks' Ability and Willingness to Increase Commercial Lending in Germany by Alexej Antropov, GRIN Verlag
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Alexej Antropov ISBN: 9783640899906
Publisher: GRIN Verlag Publication: April 26, 2011
Imprint: GRIN Verlag Language: English
Author: Alexej Antropov
ISBN: 9783640899906
Publisher: GRIN Verlag
Publication: April 26, 2011
Imprint: GRIN Verlag
Language: English

Seminar paper from the year 2010 in the subject Business economics - Investment and Finance, grade: 1,3, University of applied sciences, Munich, course: International Finance & Accounting, language: English, abstract: During the Financial Crisis 2007-2010, which was the result of housing bubble in the United States in 2006, commercial banks rapidly decreased the amount of commercial lending worldwide. So called subprime credits made the assets of commercial banks less worth during a short period. It was the cause for the credit crunch in many economies. Because many enterprises have to rely on debt capital, which they lend from commercial banks to finance their investments, the credit crunch hit such enterprises very hard. The outcome is that the whole economy suffers. Many governments elaborated the bad bank concept to solve the problem of decreased commercial lending, also Germany. It means, that banks will be allowed to start special purpose vehicles (SPV) for holding the subprime credits and to bring such subprime credits out of the balance sheet of the bank. In Anglo-Saxon countries there are two other terms in use for SPV: (loan) recovery agency and asset management company. According to Homoelle, Ruff and Tuerr1 in theory and praxis there are many variants of bad bank models existing. Until now the question which model is most successful, became insufficient exploration. German government adopted two different models of bad banks and proposed the Financial Market Stabilisation Act (FMStFG), which became effective on July 22th 2009.2 After that some banks used this opportunity and transferred their subprime assets to such SPV. The scope of the work is first to evaluate why exactly commercial banks decreased the commercial lending, second to analyse German bad bank concept and then to work out the incentives of this concept for more commercial lending by commercial banks and to show some examples of implementation of bad bank concept by German banks. At the end the answer on the question, whether the bad bank concept increases the ability and willingness of German commercial banks to make more commercial credits available or not, will be given in this term paper.

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

Seminar paper from the year 2010 in the subject Business economics - Investment and Finance, grade: 1,3, University of applied sciences, Munich, course: International Finance & Accounting, language: English, abstract: During the Financial Crisis 2007-2010, which was the result of housing bubble in the United States in 2006, commercial banks rapidly decreased the amount of commercial lending worldwide. So called subprime credits made the assets of commercial banks less worth during a short period. It was the cause for the credit crunch in many economies. Because many enterprises have to rely on debt capital, which they lend from commercial banks to finance their investments, the credit crunch hit such enterprises very hard. The outcome is that the whole economy suffers. Many governments elaborated the bad bank concept to solve the problem of decreased commercial lending, also Germany. It means, that banks will be allowed to start special purpose vehicles (SPV) for holding the subprime credits and to bring such subprime credits out of the balance sheet of the bank. In Anglo-Saxon countries there are two other terms in use for SPV: (loan) recovery agency and asset management company. According to Homoelle, Ruff and Tuerr1 in theory and praxis there are many variants of bad bank models existing. Until now the question which model is most successful, became insufficient exploration. German government adopted two different models of bad banks and proposed the Financial Market Stabilisation Act (FMStFG), which became effective on July 22th 2009.2 After that some banks used this opportunity and transferred their subprime assets to such SPV. The scope of the work is first to evaluate why exactly commercial banks decreased the commercial lending, second to analyse German bad bank concept and then to work out the incentives of this concept for more commercial lending by commercial banks and to show some examples of implementation of bad bank concept by German banks. At the end the answer on the question, whether the bad bank concept increases the ability and willingness of German commercial banks to make more commercial credits available or not, will be given in this term paper.

More books from GRIN Verlag

Cover of the book Analyse geschlechtsspezifischer Umgangsweisen von Jugendlichen mit dem Internet by Alexej Antropov
Cover of the book Der Ball ist ein Sauhund by Alexej Antropov
Cover of the book Die weibliche Beschneidung in der afrikanischen Gesellschaft by Alexej Antropov
Cover of the book Sensible Perioden bei Maria Montessori by Alexej Antropov
Cover of the book Wachstum in kleinen offenen Volkswirtschaften by Alexej Antropov
Cover of the book Der mögliche Einfluss von Gliazellen auf die Entstehung von Epilepsie by Alexej Antropov
Cover of the book Rezension zu 'Kairo. Die Entwicklung des modernen Stadtzentrums im 19. und frühen 20. Jahrhundert' von Ihab Morgan by Alexej Antropov
Cover of the book Epikur und der Tod by Alexej Antropov
Cover of the book Der Piccolomini-Altar und die Brügger Madonna - Die Piccolomini-Madonna? by Alexej Antropov
Cover of the book Die Kollegiale Coaching Konferenz im schulischen Kontext auf Ebene der Schulleitung by Alexej Antropov
Cover of the book Förderung von hypoaktiven Kindern in der Grundschule und Interventionen in der Nachhilfe by Alexej Antropov
Cover of the book Events going green - Nachhaltigkeit in der Veranstaltungsbranche by Alexej Antropov
Cover of the book Spezielle Kapitel aus der Kinder- und Jugendpsychiatrie by Alexej Antropov
Cover of the book Bibliodrama - eine religionspädagogische Methode in der Arbeit mit Erwachsenen by Alexej Antropov
Cover of the book Die Bilanzierung von Zweckgesellschaften nach US-GAAP by Alexej Antropov
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy