The changes in capital structure of selected banking markets as a result of new regulations
The changes in capital structure of selected banking markets as a result of new regulations

Author(s): Günter Hofbauer, Monika Klimontowicz, Aleksandra Nocoń
Subject(s): Business Economy / Management, Financial Markets
Published by: Masarykova univerzita nakladatelství
Keywords: Basel III; capital regulations; banking market; credit institutions’ liabilities; bank capital; structure of bank capital;
Summary/Abstract: Among many different factors that has influenced banking market for the last few decades the regulations are thought to be the crucial ones. The new prudential standards implemented by the Basel Committee treat banks’ capital as a foundation for safety. The appropriate level of bank’s capital helps to manage all kinds of risks. European directives that have had to be implemented to national regulations have remarkably changed the market environment and influenced banks and credit institutions’ market policy. Fulfilling capital requirements has become one of their most important objectives. On the other hand, capital safety may favour maintaining the stability of banks. The paper presents the review of European regulation in this field and their impact on selected banking market. The author has chosen Germany and Poland as an representation of European largest economies. The purpose of the paper is to present the similarities and differences between the regulation impact on the west and east Europe.

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