Total financing volumes and financing structures are important indicators for numerous
real economic and financial developments. Financing decisions are based primarily on
investment decisions, but also provide indications for financing conditions for
companies in the money and capital markets. The financial crisis starting in 2007 and
2008 affected these markets in Germany in various ways.
The spillover of the crisis to Germany can, to a considerable degree, be
explained by the fact that German credit institutions had reached the brink of collapse.
One central problem and cause of the crisis was poor risk monitoring, for instance
through rating agencies on the US securitization market. The burden on banks due to
crisis-induced write-downs as well as the drying-up of interbank money markets, which
resulted in refinancing problems for numerous credit institutions, created a fear of a
potential ‘credit crunch’ for companies or the economy at large.
This means the main macroeconomic concern was that the restriction
on credit supply might be severe enough to cause an economic crisis.
As a result of these disturbances, the regulating authorities put forth several new
measures, provisions and rules. As a lesson learned, one central
task should be strengthening the resilience of the financial system to future crises. The
work in hand, focuses on the effects of the Basel III regulations as these, on the one
hand, are already being enforced and, on the other hand, have a considerable impact
on corporate finance and corporate banking business models.
The Basel III Accords concerning higher capital requirements for banks were already
underway before the financial crisis hit, but the legislators and supervisory authorities
accelerated their implementation after the onset of the crisis. In its aftermath, the
economy experienced historically low levels of interest rates as a result of monetary
policy. Nevertheless, the conventional wisdom of scientists, consultants, and other
experts was shaped by the experience that bank loans tend to become more expensive
and scarcer when when new regulatory requirements are introduced. They advised
companies to shift their debt capital structures from major bank loan financing, which
has historically been the major source in Germany, to more capital market financing
instruments.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Background and Motivation
- Aim and Objectives
- Chosen Approach
- Structure of the Study
- Review of Literature
- Debt Capital Markets and Structures in Germany
- Universal and Economic Reflections in View of Financing Decisions
- Funding Considerations on Business Level
- Recent Developments in German Debt Markets
- Impact of the Basel III Regulations on Financing Terms
- Key Contents of the Basel III Accords
- Effects of Basel III on the Financing Terms for Companies
- Review of Financing Instruments
- Equity and Mezzanine Capital
- Debt Capital
- Off-Balance Sheet Instruments
- Debt Capital Markets and Structures in Germany
- Implications for Corporate Banking Models in Germany
- Challenges of Basel III for Corporate Banking
- Market Potential and Overview
- Behaviour of Existing Market Players and New Market Entrants
- Existing Market Players
- New Market Entrants
- Development of Bank Loan Portfolios
- Empirical Analysis of Developments of Capital Structures since 2007
- Research Questions
- Research Methodology
- Research Sample
- Development of German Companies' Debt Capital Structures
- Multinational Companies
- Large Companies
- Medium Sized Companies
- Key Findings and Qualitative Evaluation
- Conclusions
- Aim and Objectives
- Summary of the Empirical Evidence and Outlook
- Outlook and Possible Future Scenarios for Banks
- Research Limitations
- Implications for Future Research
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This thesis aims to analyze the impact of post-crisis banking regulation on German companies' debt capital structures and the corporate banking business model. It seeks to understand how German companies have reacted to changes in the banking market, particularly in terms of financing strategies and potential shifts in their debt capital structures. The study also examines the broader effects of new banking regulations on the German corporate banking market, including the behavior of market participants. Key themes explored in the thesis include:- The impact of post-crisis banking regulations on corporate financing decisions
- The evolution of debt capital structures in German companies since 2007
- The influence of Basel III on the corporate banking business model
- The changing role of bank loans in corporate financing
- The emergence of new market entrants and their influence on the corporate banking landscape
Zusammenfassung der Kapitel (Chapter Summaries)
The first chapter introduces the research topic and provides background information on the motivation behind the study. It defines the aim and objectives, outlines the chosen approach, and presents the structure of the thesis. Chapter two reviews relevant literature on debt capital markets and structures in Germany, focusing on the impact of Basel III regulations on financing terms. It examines the key contents of Basel III, analyzes its potential effects on corporate financing terms, and provides an overview of different financing instruments, including equity, debt capital, and off-balance sheet instruments. The third chapter explores the implications of Basel III for corporate banking models in Germany. It discusses the challenges posed by the regulations for the corporate banking sector, examines the market potential and provides an overview of the behavior of existing market players and new market entrants. This chapter also analyzes the development of bank loan portfolios. The fourth chapter presents an empirical analysis of the development of capital structures in German companies since 2007. It outlines the research questions, methodology, and sample, and examines the debt capital structures of multinational, large, and medium-sized companies. This chapter concludes with a qualitative evaluation of key findings. The fifth chapter summarizes the findings of the study and presents the key conclusions drawn from the empirical analysis. It discusses the outlook for future developments in the corporate banking sector, examines the implications for future research, and acknowledges the limitations of the study.
Schlüsselwörter (Keywords)
This research focuses on the impact of post-crisis banking regulation on German corporate financing. Key terms include: post-crisis banking regulation, Basel III, debt capital structures, corporate banking, financing decisions, bank loans, bond markets, corporate finance, German companies, empirical analysis.- Citar trabajo
- Stephan Miller (Autor), 2014, Implications of post-crisis banking regulation after 2007 on the debt capital structures of German companies and corporate banking business models, Múnich, GRIN Verlag, https://www.grin.com/document/284311
