by Jürgen Gerhards, Silke Hans, Jürgen Schupp, in
DIW Economic Bulletin
Since the beginning of 2016, the Socio-Economic Panel (SOEP) study has been conducting a monthly survey of German attitudes, expectations, and fears concerning migration. The third wave of the survey,—the Barometer of Public Opinion on Refugees in Germany (Stimmungsbarometer zu Geflüchteten in Deutschland)—, conductedin March 2016, shows that more than half of all respondents still associate the influx of refugees with more risks than opportunities. Nonetheless, a clear majority (81 percent of respondents) are in favor of admitting refugees and those fleeing political persecution, in accordance with international law. At the same time, however, the majority are of the conviction that refugees should be sent back to their home country once their reason for leaving it no longer pertains. Only 28 percent of all respondents are in favor of allowing refugees who have already been living in Germany for some time to remain in the country even after the situation in their country of origin has improved.
by Philipp König, David Pothier, in
DIW Economic Bulletin
Following the financial crisis of 2008/09, the Basel Committee on Banking Supervision introduced a new framework for banking regulation, commonly known as Basel III. For the first time since the inception of global banking regulation in 1988, Basel III contains explicit mandatory rules for liquidity regulation. The cornerstones of the new liquidity regulation are two balance sheet ratios that seek to reduce banks’ liquidity transformation. While regulation addressing liquidity risk in the banking sector is clearly desirable, the new rules have several pitfalls. First, the two ratios rely on different definitions of liquidity and funding stability which makes the regulatory framework unnecessarily complicated and opaque. Second, it is unclear whether a ratio-based approach is the most effective and efficient way to rectify liquidity problems in the banking sector. Third, it is unclear how the new liquidity rules interact with existing monetary implementation frameworks of central banks and whether they hamper a smooth steering of policy interest rates.