129 (3) 2009
Die Zuordnung von Regulierungskompetenzen im deutschen Bankensektor. Eine vertragstheoretische Analyse
The paper applies the incomplete financial contract models of Repullo (2000) as well as Kahn and Santos (2005; 2006) to the German banking sector and discusses what con-sequences the current institutional allocation of bank regulatory powers has for the func-tionality of the banking sector. It asks whether bank regulatory competences in Germany should be concentrated on a single regulatory and supervisory authority or whether dif-ferent regulatory institutions should be involved. The question which authority should do what task in the latter case is also addressed. The paper shows that, under weak condi-tions, Deutsche Bundesbank should act as LLR.
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