The Ethics of Banking On the Ethical Economy of the Credit and Capital Market, of Speculation and Insider Trading in the German Experience

  • Peter Koslowski
Part of the Studies in Economic Ethics and Philosophy book series (SEEP)


A developed money, credit and capital market which provides the economy with the financial resources necessary for economic transactions and growth is a generally acclaimed hallmark of economic development. Banks play a vital role as the intermediary institutions in the money, credit and capital market. They mediate the money supply in the money market between the central bank and the economy. They mediate credit between the demand for credit and the supply of savings, and they finally function as mediator between industry’s demand for capital and secured loans and the supply of capital from industry, financial immediaries and private individuals. Banks are therefore the intermediators par excellence. In a system of universal banking as the German banking system, banks are, however, not only intermediaries for investment but also judges of investors and of alternative investment uses of capital as well as of the creditworthiness of their customers in the credit market. They are not only mediating, but constantly evaluating risks and creditworthiness. Banks furthermore act as investors for their own account in the stock exchange and give advice to institutional and private investors for their investment in the capital market. Their roles as evaluators and judges in the credit market and as investors and consultants to other investors in the capital market cause that they are influential factors in the economic process far beyond their function as mediators between savings and investments.


Business Ethic Stock Market Capital Market Stock Exchange Credit Market 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. Altendorfer, Ch. (1992): Insidergeschäfte. Rechtsgrundlagen und Sanktionen (Insider Trading. Legal Foundations and Sanctions), Wien (Bank-Verlag/Orac).Google Scholar
  2. Andreas, K. (1992): “Denkansätze für eine Ethik im Bankwesen” (Starting Points for an Ethics in the Banking System), in: P. Koslowski (Ed.): Neuere Entwicklungen in der Wirtschaftsethik und Wirtschaftsphilosophie (Recent Developments in Economic Ethics and Economic Philosophy), Berlin, Heidelberg, New York, Tokyo (Springer) (= Studies in Economic Ethics and Philosophy vol. 2), pp. 177–193.CrossRefGoogle Scholar
  3. Anger, D. (1981): Insiderregeln im Wertpapiergeschäft ausgewählter Länder (Insider Laws in the Stock Exchange of Selected Countries), Diss. Erlangen-Nürnberg.Google Scholar
  4. Brady, F. N. (1993): “Impartiality and Particularity in Business Ethics”, in: P. Kos-Lowski, Y. Shionoya (Eds.): The Good and the Economical. Ethical Choices in Economics and Management, Berlin, Heidelberg, New York, Tokyo (Springer) (= Studies in Economic Ethics and Philosophy vol. 4), pp. 175–194.Google Scholar
  5. Brauer, Th. (1925): Produktionsfaktor Arbeit. Erwägungen zur modernen Arbeitslehre (Factor of Production ”Labour”. Reflections on the Modem Theory of Labour), Jena (Gustav Fischer).Google Scholar
  6. Breuer, R.-E. (1990): “Die Deutsche Terminbörse als Vorreiter einer Börsenlandschaft der 90er Jahre?” (The German Futures Exchange as Avantgarde for a Forward Market of the Future?), Zeitschrift für Bankrecht und Bankwirtschaft, 2, Nr. 3, pp. 101ff.Google Scholar
  7. Corbetta, G. (1994): “Shareholders”, in: B. Harvey (Ed.): Business Ethics. A European Approach, Hemel Hempstead (Prentice Hall), pp. 88–102.Google Scholar
  8. Dahrendorf, R. (1994): “Europäisches Tagebuch (European Diary) (XD)”, Merkur, 48, Nr. 7, pp. 639–640.Google Scholar
  9. DeGeorge, Richard T. (1989): “Ethics and the Financial Community: An Overview”, in: O. F. Williams, F. K. Reilly, J. W. Houck (Eds.): Ethics and the Investment Industry, Savage (Rowman & Littlefield), pp. 197–216.Google Scholar
  10. DeGeorge, Richard T. (1990): Business Ethics, New York (Macmillian Publishing Company).Google Scholar
  11. Dennert, J. (1991): “Insider Trading”, Kyklos, 44, Nr. 2, pp. 181–202.CrossRefGoogle Scholar
  12. Dessauer, F. (1926): “Dienst- und Verdienstwirtschaft / Ein Wort zur Wirtschaftsnot der Gegenwart” (An Economy of Service or of Enrichment. A Word on the Economic Predicament of the Present), Hochland, 23,2, pp. 513–520.Google Scholar
  13. Díez-Alegría, J. (1951): “El problema del fundamento ontològico de la obligación en la obra De iustitia de Luis de Molina” (The Problem of the Ontological Fundament of Obligation in the Work “On Justice” of Luis de Molina), Pensamiento, 7, pp. 147–167.Google Scholar
  14. Dingeldey, Th. (1983): Insider-Handel und Strafrecht (Insider Trading and Criminal Law), Köln u.a. (Heymanns).Google Scholar
  15. Economic Advisory Board (1981): The British and German Banking System: A Comparative Study, London.Google Scholar
  16. Engel, G. (1991): “Zur Problematik eines gesetzlichen Verbots von Insider-Ge- schäften” (The Problem of a Legal Prohibition of Insider Trading), Jahrbuch für Sozialwissenschaft, 42, pp. 388–407.Google Scholar
  17. Franke, G. (1991): “Inside Information in Bank Lending and the European Insider Directive”, in: K. J. Hopt, E. Wymeersch (Eds.): European Insider Dealing, London et al. (Butterworth).Google Scholar
  18. Freud, S.: Die Traumdeutung (1900) (The Interpretation of Dreams), Frankfurt a. M. (S. Fischer) 1982, Studienausgabe vol 2.Google Scholar
  19. Friedman, B. M. (1987): Article “Capital, credit and money markets”, in: The New Pal grave. A Dictionary of Economics, London (Macmillan), New York (Stockton), Tokyo (Maruzen), Vol. 1, pp. 320–327.Google Scholar
  20. Gaillard, E. (Ed.) (1992): Insider Trading. The Laws of Europe, the United States and Japan, Deventer, Boston (Kluwer Law and Taxation).Google Scholar
  21. Gay, David E. R. (1987): Article “Dividend Policy”, in: The New Palgrave. A Dictionary of Economics, London (Macmillan), New York (Stockton), Tokyo (Ma- ruzen), Vol. 1, pp. 896–899Google Scholar
  22. Gesetz über den Wertpapierhandel und zur Änderung börsenrechtlicher und wertpapierrechtlicher Vorschriften (Zweites Finanzmarktförderungsgesetz) vom 26. Juli 1994 (Law on the Trading of Securities and on the Alterations of Existing Stock Exchange and Securities Regulations [Second Law on the Improvement of the Financial Market]) of July 26,1994.Google Scholar
  23. Grünewald, B. (1990): “Neue Regeln zum Insiderhandel” (New Rules Concerning Insider Trading), Zeitschrift für Bankrecht und Bankwirtschaft, 2, Nr. 3, pp. 128–133.Google Scholar
  24. Hendrie, A. (Ed.) (1981): Banking Structures and sources of finance in the European Community, London (The Financial Times Business Publishing).Google Scholar
  25. Hesselberger, D. (1991): Das Grundgesetz. Kommentar für die politische Bildung (The Constitution. Commentary for Political Education), Neuwied (Luchterhand)81991, pp. 136ff.Google Scholar
  26. Hopt, K. J. (1991): “Europäisches und deutsches Insiderrecht” (European and Ger- man Insider Law), Zeitschrift für Unternehmens- und Gesellschaftsrecht, 20, pp. 17–73.CrossRefGoogle Scholar
  27. Hopt, K. J., Will, M. R. (1973): Europäisches Insiderrecht. Einführende Untersu- chung — Ausgewählte Materialien (European Insider Law. Introduction — Selected Materials), Stuttgart (Enke).Google Scholar
  28. Jacob, A.-F. (Ed.) (1990): Bankenmacht und Ethik (Power of Banks and Ethics), Stuttgart (Poeschel).Google Scholar
  29. Jacob, A.-F. (Ed.) (1992): Eine Standesethik für den internationalen Finanzmanager? (An Ethics of the Profession for the International Financial Manager?), Stuttgart (Poeschel).Google Scholar
  30. Jaroslaw, B. (1913): Ideal und Geschäft (Ideal and Business), Jena (G. Fischer).Google Scholar
  31. Johannes Duns Scotus (1968): Quaestiones in Lib. IV. Sententiarum, vol. 9, Lyon (Laurentius Durand) 1639, reprint Hildesheim (Olms).Google Scholar
  32. Kantorowicz, H. (1963): Der Begriff des Rechts, Göttingen (Vandenhoeck & Ruprecht). Original: The Definition of Law, Cambridge (Cambridge University Press) 1958.Google Scholar
  33. King, M., Roell, A. (1988): “Insider trading”, Economic Policy. A European Forum, Nr. 6, pp. 165–193.Google Scholar
  34. Knight, F. (1921): Risk, Uncertainty, and Profit, New York (Houghton Mifflin).Google Scholar
  35. Koslowski, P. (1982): Gesellschaft und Staat. Ein unvermeidlicher Dualismus (Society and State. An Inevitable Dualism), Stuttgart (Klett-Cotta).Google Scholar
  36. Koslowski, P. (1982a): Ethik des Kapitalismus. With a comment by James M. Buchanan, Tübingen (J.C.B. Mohr [Paul Siebeck]), 4th ed. 1991. Abridged English version in: S. Pejovich (Ed): Philosophical and Economic Foundations of Capitalism, Lexington (Lexington Books) 1983, pp. 33–64.Google Scholar
  37. Koslowski, P. (1988): Prinzipien der Ethischen Ökonomie. Grundlegung der Wirtschaftsethik (Principles of Ethical Economy. Foundations of Business Ethics), Tübingen (J.C.B. Mohr [P. Siebeck]), Reprint 1994.Google Scholar
  38. Koslowski, P. (1989): Wirtschaft als Kultur. Wirtschaftskultur und Wirtschaftsethik in der Postmoderne (The Economy as Culture. Economic Culture and Economic Ethics in Postmodern Times), Vienna (Edition Passagen).Google Scholar
  39. Koslowski, P. (1991): Gesellschaftliche Koordination. Eine ontologische und kulturwissenschaftliche Theorie der Marktwirtschaft (Social Coordination. An Ontological and Cultural Theory of the Market), Tübingen (J.C.B. Mohr [Paul Siebeck]).Google Scholar
  40. Landmesser, F. X. (1926): Die Eigengesetzlichkeit der Kultursachgebiete (Wirtschaft und Staat) (The Relative Autonomy of the Cultural Subsystems [Economy and State]), Köln, München, Wien (Oratoriums-Verlag).Google Scholar
  41. Lugo, Juan DE (1670): De iustitia et iure (On Justice, Natural Right, and Law), Lyon.Google Scholar
  42. Luhmann, N. (1994): “Kapitalismus und Utopie” (Capitalism and Utopia), Merkur, 48, H. 3, p. 191.Google Scholar
  43. Manne, H. G. (1966): Insider Trading and the Stock Market, New York (The Free Press).Google Scholar
  44. Martin, D. W., Peterson, J. H. (1991): “Insider Trading Revisited”, Journal of Business Ethics, 10, pp. 57–61.CrossRefGoogle Scholar
  45. Maihofer, W. (1965): “Die Natur der Sache” (The Nature of the Matter), in: A. Kaufmann (Ed.): Die ontologische Begründung des Rechts (The Ontological Foundation of Law), Darmstadt (Wissenschaftliche Buchgesellschaft), pp. 52–86.Google Scholar
  46. Mayr, G. Von (1900): Die Pflicht im Wirtschaftsleben (The Duty in Economic Life), Tübingen (Laupp).Google Scholar
  47. McGee, R. W. (1988): “Insider Trading: An Economic and Philosophical Analysis”, Mid-Atlantic Journal of Business, 25, pp. 35–48.Google Scholar
  48. Meier, Ch. (1986): Wirtschaftsdelikte im Bankengewerbe. Eine empirische Untersuchung über Entwicklung, Erscheinungsformen, Schadensfolgen und Risikoursachen bankbezogener Wirtschaftsstraftaten (Economic Crimes in the Banking Industry. An empirical investigation on the development, manifestation, consequences and causes of bank-related crimes), Bern, Stuttgart (Haupt).Google Scholar
  49. Messner, J. (1984): Das Naturrecht. Handbuch der Gesellschaftsethik, Staatsethik und Wirtschaftsethik (The Natural Right. Handbook of the Ethics of Society, of the State, and of the Economy), Berlin (Duncker & Humblot) 71984.CrossRefGoogle Scholar
  50. Messner, J. (1955): Ethik. Kompendium der Gesamtethik (Ethics. Compendium of the Entire Theory of Ethics), Innsbruck, Wien, München (Tyrolia), VIIth book: Wirtschaftsethik (Economic Ethics).Google Scholar
  51. Molina, Luis DE (1602): De justitia et jure (On Justice, Natural Right and Law), Moguntiae (Madrid).Google Scholar
  52. Moore, J. (1990): “What is Really Unethical About Insider Trading”, Journal of Business Ethics, 9, pp. 171–182.CrossRefGoogle Scholar
  53. Neidlinger, K. (1930): Studien zur Geschichte der deutschen Effektenspekulation von ihren Anfängen bis zum Beginn der Eisenbahnaktenspekulaiion. Ein Beitrag zur Börsengeschichte (Studies in the History of the German Speculation in Stocks and Shares from the Beginnings to the Start of the Speculation in Railway Shares. A Contribution to the Histoiy of the Stock Exchange), Jena (G. Fischer).Google Scholar
  54. Nell-Breuning, O. von (1928): Grundzüge der Börsenmoral (Principles of the Ethics of the Stock Exchange), Freiburg i. Br. (Herder).Google Scholar
  55. Nell-Breuning, O. v. (1928a): “Volkswirtschaftlicher Wert und Unwert der Börsenspekulation” (Economic Value and Nonvalue of Stock Exchange Speculation), Stimmen der Zeit, 114, pp. 46–56.Google Scholar
  56. Pesch, H. (1888): “Zinsgrund und Zinsgrenze” (The Reason for Interest and the Limit of the Interest Rate), Zeitschrift für katholische Theologie, 12, pp. 393–418.Google Scholar
  57. Peters, Th. J., Waterman Jr., R. H. (1982): In Search of Excellence. Lessons from America’s Best-Run Companies, New York (Harper & Row). German translation: Auf der Suche nach Spitzenleistungen. Was man von den bestgeführten US- Unternehmen lernen kann, Landsberg (Verlag Moderne Industrie) 1986.Google Scholar
  58. Radbruch, G. (1973): Rechtsphilosophie (Philosophy of Law), Stuttgart (Koehler) 81973.Google Scholar
  59. Rohatyn, F. (1994): “World Capital: The Need and the Risks”, The New York Review of Books, vol. 41, Nr. 13,14 July 1994, pp. 48–53.Google Scholar
  60. Roller, W. (1990): “Zum Selbstverständnis der Banken in einer offenen Gesellschaft” (On the Way Banks See Themselves in an Open Society), in: A.-F. Jacob: Bankenmacht und Ethik (Power of Banks and Ethics), pp. 1–14.Google Scholar
  61. Röpke, W. (1926): Article “Spekulation”, in: Handwörterbuch der Staatswissen- schaften (Encyclopedia of the State Sciences), 4th ed., Jena (Gustav Fischer), Vol. 7, pp. 706–710.Google Scholar
  62. Roth, W. (1986): “Macht der Banken” (Power of Banks), in: Tutzinger Materialien Nr. 35, Tutzing.Google Scholar
  63. Schäfer, H.-B., Ott, C. (1986): Lehrbuch der ökonomischen Analyse des Zivilrechts (Handbook of the Economic Analysis of Civil Law), Berlin, New York, Tokyo (Springer), pp. 300ff.Google Scholar
  64. Schimmler, J. (1974): Spekulation, spekulative Gewinne und Preisstabilität (Speculation, Speculative Profits, and Price Stability). Eine Theorie der Spekulation unter besonderer Berücksichtigung der Auswirkungen spekulativer Transaktionen auf die Preisstabilität, Meisenheim a. G. (Hain).Google Scholar
  65. Schneider, Dieter (1993): “Wider Insiderhandelsverbot und die Informationseffizienz des Kapitalmarkts” (Against the Prohibition of Insider Trading and the Informational Efficiency of the Capital Market), Der Betrieb, 46, H. 29, pp. 1429–1435.Google Scholar
  66. Schörner, P. (1991): Gesetzliches Insiderhandelsverbot. Eine ordnungspolitische Analyse (The Legal Prohibition of Insider Trading. A Political Analysis), Wies- baden (Gabler).Google Scholar
  67. Sen, A. (1967): “Isolation, Assurance, and the Social Rate of Discount”, Quarterly Journal of Economics, 81, pp. 112–124.CrossRefGoogle Scholar
  68. Sen, A. (1993): “Money and Value. On The Ethics and Economics of Finance”, Economics and Philosophy, 9, pp. 203–227.CrossRefGoogle Scholar
  69. Splegel-magazine (1994): “Der Pleite-König. Millarden-Versagen der Banken” (The King of Bankruptsy. Billion-Failure of the Banks), Der Spiegel, No. 16,18 April 1994, pp. 22–30.Google Scholar
  70. Stein, J. (1993): The Banking System in Germany, Köln (Bank-Verlag) 1993. German version: Das Bankwesen in Deutschland, Köln (Bank-Verlag).Google Scholar
  71. Steinmann, G. (1970): Theorie der Spekulation (The Theory of Speculation), Tübingen (J.C.B. Mohr [P. Siebeck]).Google Scholar
  72. Strieder, J. (1925): Studien zur Geschichte kapitalistischer Organisationsformen. Monopole, Kartelle und Aktiengesellschaften im Mittelalter und zu Beginn der Neuzeit (Studies in the History of Organization in Capitalistism. Monopolies, Trusts and Corporations in the Middle Ages and in the Beginning of Modem Times), München, Leipzig (Duncker & Humblot) 21925.Google Scholar
  73. Thomas Aquinas (1951): Summa theologiae (1267–73), Madrid (Biblioteca de Autores Cristianos).Google Scholar
  74. Tuchtfeldt, E. (1988): Article “Kapitalmarkt” (The Capital Market), in: Handwörterbuch der Wirtschaftswissenschaft (Encyclopedia of Economics), Stuttgart, New York (G. Fischer), Tübingen (J.C.B. Mohr [P. Siebeck]), Göttingen (Van- denhoeck & Ruprecht), vol. 4, pp. 432–439.Google Scholar
  75. Weber, Max (1894): Die Börse, I. Zweck und äußere Organisation (The Stock Exchange, I. Purpose and Organisation), Göttingen (Vandenhoeck & Ruprecht) (= Göttinger Arbeiterbibliothek vol. 1, Nr. 2/3, pp. 17–48).Google Scholar
  76. Weber, Max (1896): Die Börse, II. Der Börsenverkehr (The Stock Exchange, II. Trading at the Stock Exchange), Göttingen (Vandenhoeck & Ruprecht) (= Göttinger Arbeiterbibliothek vol. 2, Nr. 2/3, pp. 49–80).Google Scholar
  77. Weber, Wilhelm (1959): Wirtschaftsethik am Vorabend des Liberalismus. Höhepunkt und Abschluß der scholastischen Wirtschaftsbetrachtung durch Luis de Molina (Business Ethics on the Eve of Liberalism. Climax and Completion of the Scholastic Theory of Economics by Luis de Molina), Münster (Aschendorff).Google Scholar
  78. Weickart, N.-J. (1989): “Firmenübemahme: Festung Deutschland” (“Company takeovers: Fort Germany”) in: Manager Magazin, 19 April, 1989, pp. 128–139.Google Scholar
  79. Wenger, E. (1992): “Universalbankensystem und Depotstimmenrecht” (Universal Banking System and Proxy Voting Rights), in: H. Gröner (Ed.): Der Markt für Unternehmenskontrollen (The Market for Corporate Control), Berlin (Duncker & Humblot) (= Schriften des Vereins für Socialpolitik N.F. 214), p. 93f.Google Scholar
  80. Williams, David (1994): Japan: Beyond the End of History, London, New York (Routledge) (= The Nissan Institute/Routledge Japanese Studies Series).CrossRefGoogle Scholar
  81. Williamson, O. E. (1977):, Firms and Markets”, in: S. Weintraub (Ed.): Modern Economic Thought, Philadelphia (University of Pennsylvania Press).Google Scholar
  82. Williamson, O. E. (1981): “The Modem Corporation: Origins, Evolution, Attributes”, Journal of Economic Literature, 19, pp. 1537–1570.Google Scholar
  83. Wojtek, R. J. (1978): Insider Trading im deutschen und amerikanischen Recht (Insider Trading in the German and American Law), Berlin (Duncker & Humblot).Google Scholar
  84. Wolff, Birgitta (1990): Banking Down Under: Differences between Australian and German Banking and some Conclusions for German Banks, working paper, University of Witten/Herdecke, January 1990.Google Scholar

Copyright information

© Springer-Verlag Berlin · Heidelberg 1995

Authors and Affiliations

  • Peter Koslowski

There are no affiliations available

Personalised recommendations