Open-end real estate funds in Germany – genesis and crisis

Christina Bannier, Falko Fecht () and Marcel Tyrell

No 2007,04, Discussion Paper Series 2: Banking and Financial Studies from Deutsche Bundesbank, Research Centre

Abstract: Open-end real estate funds are of particular importance in the German bank- dominated financial system. However, recently the German open-end fund industry came under severe distress which triggered a broad discussion of required regulatory interventions. This paper gives a detailed description of the institutional structure of these funds and of the events that led to the crisis. Furthermore, it applies recent banking theory to openend real estate funds in order to understand why the open-end fund structure was so prevalent in Germany. Based on these theoretical insights we evaluate the various policy recommendations that have been raised.

Keywords: Open-End Funds; Liquidity Transformation; Liquidity Crisis; Risk Sharing (search for similar items in EconPapers)
JEL-codes: G23 G28 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eec, nep-his and nep-ure
Date: Written 2007

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Related works:
Working Paper: Open-End Real Estate Funds in Germany - Genesis and Crisis (2006)
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