英语论文网

;         

12

  Caveats: Further tests with other variables and other periods are necessary to assure that the relationship found
between real estate markets and bank stock returns is valid and stable. So far, the results cannot be regarded as
representative for all German banks because only 30 out of 3500 are listed on a stock exchange. Moreover, the

results do not say anything about the risk premia that investors demand when holding bank stocks.

13

  See Lausberg (2001) for more details.investments and loans.  Only very few banks seem to regularly use instruments to hedge the real estate market risk.

14

Regarding the level of risk management most instruments are used on the level of the
individual asset, while a portfolio view of real estate activities is but slowly gaining acceptance.
Some of the leading banks experiment with the value-at-risk methodology they use for their loan
portfolios, but many issues concerning portfolio risk are not yet solved.
In short, the instruments in place today at most financial institutions are not able to

measure or control real estate market risk effectively.

3.2.  Consequences for risk management

The logical consequence from the results of this study—the high importance of the real
estate market risk and the deficits in managing the risk—is that there is an urgent need for new
instruments.  Ideally the development of a complete risk management system for real estate risks,
especially for the real estate market risk, should start with the definition of the most basic
parameters used in portfolio management—risk and return.  At present, different definitions exist,
but none is able to fulfill the demands of  both researchers and risk managers.  Connected to this,
new ways to measure real estate risk are to be developed, which implies new forms for market
valuation of all real-estate related assets.
In most countries outside the US and the UK another precondition for better risk
management is the improvement of the data base.  This is not only a quantitative problem because
of limited historical data, but also a qualitative one; major research has to be done on fields such as
the distribution of real estate returns, methods to forecast the real estate market, the characteristics
of real estate cycles and crises, and capital markets-based real estate research.
Compared to that, the problems of risk controlling and hedging are small.  Here, it is most
important to create a liquid market for real estate market instruments.  The methodological
problems are similar to the ones that were solved long ago for stock and bond markets.  It can be
assumed that financial institutions and real estate investors will soon start to create derivative real
estate market instruments to hedge their positions.
Another unsolved problem is the integration of all bank risks into an overall bank risk
management system.  There has been a lot of progress recently in this direction, although some
    本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。