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Project

The real effects of bank regulation and supervision

The global financial crisis of 2007-2009, the sovereign debt crisis in Europe, and the ongoing Covid-19 pandemic pushed many economies across the globe into a recession. These crises have put the regulation and supervision of the financial sector in the spotlights: regulation and supervision may be answers to soften the severity and duration of recessions. Following these crises, in particular bank-dependent economies have experienced lackluster growth. This happened in an environment with unprecedented accommodative monetary policy reflected in negative policy rates and massive utilization of unconventional monetary policy instruments. Many bank-dependent countries are faced with a large fraction of non-viable firms (i.e., zombie firms) that survive despite (or due to) bank regulation and supervision. The objective of this project is to empirically study the real effects of bank regulation and supervision using several unique detailed micro-datasets covering different economic environments including the Covid-19 pandemic. The results of this project will help improving the appropriate design of prudential regulation and bank supervision in different economic environments.

Date:1 Sep 2021 →  Today
Keywords:Bank Supervision
Disciplines:Financial economics, Monetary policy, central banking and the supply of money and credit
Project type:PhD project