An empirical analysis of income effects of the new Basel III capital regulations on cooperative banks

The new capital stipulations according to the Basle III rules are are subject to intensive political and academic discussions. Cooperative banks have to estimate the expected effects of these new rules for their balance sheet and their income statement. Existing impact estimates by the BIS do not provide sufficient insight into the effects on cooperative banks due to their inappropriate definition of a "small" bank. 
This working paper derives some hypotheses on balance sheet and imcome impacts of the new rules and then provides an estimate for these impacts on German cooperative banks. For this purpose the effects for every German cooperative bank are estimated and the aggregated results for the whole group and the distribution of the effects are reported.