#banksonbasel: Dr. Christian Ricken
How great a burden will Basel III impose on German banks?
According to Bundesbank calculations, banks will need 11.1% more capital when the transitional regulations expire. However, it is important to know that this calculation also includes banks that use the standardised approach and will therefore be far less affected by the burdens imposed by Basel III than those using internal models. The capital surcharge will be clearly higher for the latter banks and will noticeably restrict the lending opportunities they so urgently need, which in turn will also weigh on the real economy.