Loan-to-credit ratios affected stability of smaller German banks – paper

Bundesbank researchers look at data on “critical events” from 1995 to 2013

bundesbank
Germany’s Deutsche Bundesbank

Loan-to-credit ratios had an important influence on the financial stability of Germany’s smaller credit institutions before the implementation of Basel III, a discussion paper published by the German Bundesbank says.

In The role of structural funding for stability in the German banking sector, Fabian Schupp and Leonid Silbermann look at German financial institutions from 1995 to 2013. This period was before the Basel III net stable funding ratio existed, or after it had been passed but before

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