For a fairly long time, the German corporate loan business has been regarded in publications on the subject as leading to value deterioration. On the basis of the bank lending statistics of the Deutsche Bundesbank, our analysis clearly shows a cyclical as well as a structural problem preventing the big four German banks from creating value. In order to analyze possible strategies to solve this issue within a systemic approach, we built a model which included almost 200 variables. Running this model until the year 2010 the outcome is appalling: the break-even return on equity will not be reached. We therefore modelled in a second step the widely discussed strategy of risk adjusted pricing. The outcome raises hope – although this strategy in itself is not sufficient to solve the problem entirely, the return on equity can be increased.

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Date created

• 2006 July 23-2006 July 27

Type

• Document

Processing Activity

• Processing documentation available at: https://wiki.albany.edu/display/SCA/Processing+Ingested+Digital+Files

License

• Creative Commons BY-NC-ND Attribution-NonCommercial-NoDerivs 4.0 International

  
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ITEM CONTEXT

Part of

32937c7b43e3e015509bb71fd40d2054

Scope and Contents

Part of

23d738ba88f8333bc39725f9cb5bd0b8

Scope and Contents

Part of

f9377a3ac7b50b1fca5e04fb6d679ec2

Scope and Contents

Collection

System Dynamic Society Records

Scope and Contents

Collecting area

• This collection is part of the University Archives