Konsekvenser af øgede lovkrav for danske pengeinstitutter

Jens Ulrich Hansen

Student thesis: Master thesis

Abstract

This master thesis deals with the use of increased regulatory requirements regarding Basel 3 and the specific Danish legislation "Bankpakke 3" and the derived consequences on the financial sector in Denmark. The master thesis is based on the Global Financial Crisis evolving from the collapse of the U.S. housingbubble which peaked with the bankruptcy of Lehman Brothers on September 15, 2008. One of the reasons why the financial Crisis became so severe, was that the banking sectors of many countries had built up excessive on- and off-balance sheet leverage. The Global Financial Crisis therefore revealed the deficiencies in the existing financial legislation in its ability to regulate and maintain the financial stability. In consequence the Basel Committee on Banking Supervision established a new global regulatory standard on bank capital adequacy and liquidity - Basel 3 - to ensure that a scenario similar to the financial crisis would not recur in the future. Basel 3 strengthens bank capital requirements and introduces new regulatory requirements on bank liquidity and bank leverage as well as special requirements regarding SIFI-institutions. With "Bankpakke 3" the Danish government introduced a new winding-up scheme for distressed banks where The Financial Stability Company would safeguard the continuing operations of the distressed bank. Amagerbanken was the first bank being wound down under the resolution framework, where large depositors along with senior unsecured creditors perceived a loss in terms of a haircut from deposits, in excess of an insured minimum of 100.000 euro. The legislation can very well cause damaging consequences for the Danish financial sector compared to other EU countries, since we are still waiting for a similar legislation measure to be implemented in the EU. In the meantime, Danish financial institutions must accept being in a competitive disadvantage. With the new global regulatory standard from the Basel Committee as well as the Danish "Bankpakke 3" there has been established a substantial regulatory framework which will change the way we think of financial institutions henceforth.

EducationsMSc in Finance and Accounting, (Graduate Programme) Final Thesis
LanguageDanish
Publication date2011
Number of pages84