Das Dilemma der Bankenregulierung

Günther Susanne

Abstract

Banking regulation faces the dilemma to accomplish two theoretically contradictory normative objectives: on the one hand the avoidance of bank runs by deposit insurance and on the other hand the preservation of market discipline in order to maintain a sound financial system. This paper aims at identifying this dilemma for the German three pillar banking system by performing a descriptive analysis and contributes to the assessment of the normative claims. It turns out that there is the reasonable suspicion that market discipline in Germany is rather weak and a bank´s size per se reduces discipline by private bank creditors.