Systemrisiko und Wirtschaftsordnung im Bankensektor

While systemic risks are often merely treated as a specific category of risks, a review of the way they are defined in law and economics forces us to view systemic risks in the context of the entire financial sector. Here, they are a reflection of the general volatility of the financial sector rather than a result of a linear causality.
Hence, avoiding systemic risks or the failure of the entire system requires a re-conceptualisation of the entire framework regulating the financial sector: from its principles to the way the rules and instruments work and interact.
Based on the ideas of the so-called economic order [Wirtschaftsordnung], an outline of such a framework is provided. It encompasses an analysis of the interaction of existing rules and instruments and concludes that only a sufficient degree of capital regulation can avoid mass-scale volatility in future.