July 2021: New VoxEU Column – Political economy in finance

By Thomas Lambert, Enrico Perotti and Magdalena Rola-Janicka Political considerations have become important in finance research, with significant implications for policymaking. This column summarises new research presented at the CEPR conference on the Political Economy of Finance, including work on opaque investments in political influence, electoral impact of credit and regulation, the role of institutional[…]

July 2021: New Research Initiative – PolEconFin

PolEconFin is a platform for researchers active in political economy of finance. This initiative seeks to provide a meeting point for theorists and empiricists with shared interests and build a research community with a focus on public policy. PolEconFin comprises of two related projects: 1. The online platform to support and promote research in political[…]

June 2021: New VoxEU Column – Centralised bank supervision and the composition of firm investment

By Miguel Ampudia, Thorsten Beck, Alexander Popov The trade-off between stability and growth has long been a subject of policy debate and informs views on the extent to which the supervision of banks should be centralised. This column presents analysis of the ECB’s Single Supervisory Mechanism, using the announcement of the mechanism and its implementation[…]

June 2021: New VoxEU Column – “Crime and Punishment”: How Russian banks anticipated and dealt with global financial sanctions

By Mikhail Mamonov, Anna Pestova and Steven Ongena Financial sanctions against Russia’s state-owned and controlled banks were imposed consecutively between 2014 and 2019, allowing banks that would potentially be targeted in the future to adjust their international and domestic exposures. This column explores the informational effects of financial sanctions, showing that compared to similar private[…]

June 2021: New VoxEU Column – The Disciplining Effect of Supervisory Scrutiny in the EU-wide Stress Test

By Christoffer Kok, Carola Müller, Steven Ongena and Cosimo Pancaro Since the financial crisis, stress tests have become an important supervisory and financial stability tool. Relying on confidential data available at the ECB, this column presents novel evidence that supervisory scrutiny associated with stress testing has a disciplining effect on bank risk. Banks that participated[…]

June 2021: New VoxEU Column – Banking on experience

By Hans Degryse, Sotirios Kokas and Raoul Minetti Since the financial crisis, stress tests have become an important supervisory and financial stability tool. Relying on confidential data available at the ECB, this column presents novel evidence that supervisory scrutiny associated with stress testing has a disciplining effect on bank risk. Banks that participated in the[…]

June 2021: New BIS Quarterly Review article – Enhancing the BIS government bond statistics

By Bilyana Bogdanova, Tracy Chan, Kristina Micic and Goetz von Peter This statistical feature presents a new data set on long-term debt securities issued by central and general governments in domestic and foreign currencies. It combines national aggregates with data on international issuance and BIS estimates, for improved coverage across all markets of issue. The[…]

June 2021: New VoxEU Column – Old risks in new clothes: The changing nature of capital flows

By Cathérine Casanova, Beatrice Scheubel and Livio Stracca Since the Global Crisis, the channels of capital flows have changed significantly. This column analyses key trends and underlying drivers of capital flows since the Global Crisis, including the policy trade-offs. It documents the increasing importance of market-based funding, a growing reliance on domestic currency liabilities, and[…]

June 2021: New VoxEU Column – Lower for longer – macroprudential policy issues arising from the low interest rate environment

by John Fell, Tuomas Peltonen and Richard Portes At the end of 2019 the European Systemic Risk Board General Board mandated a Task Force on Low Interest Rates to revisit the ESRB’s 2016 report on “Macroprudential policy issues arising from low interest rates and structural changes in the EU financial system”, assess subsequent developments, compare[…]

May 2021: New VoxEU Column – The reversal interest rate: A new motive for countercyclical macroprudential policy

by Matthieu Darracq Pariès, Christoffer Kok, and Matthias Rottner The prolonged period of negative interest rates in advanced economies has raised concerns that further monetary policy accommodation could produce contractionary effects. Using a non-linear macroeconomic model fitted to the euro area economy, this column demonstrates that the risk of hitting the ‘reversal interest rate’ depends[…]