Welcome to Tun Ismail Ali Chair (TIAC)

A blog on Monetary and Financial Economics by TIAC

Tun Ismail Ali Chair, Universiti Malaya is pleased to invite you to attend our Seminar by Professor. Dr. Thorsten Beck as detailed below:

Theme:

Bank Sectoral Concentration and (Systemic) Risk: Evidence from a Worldwide Sample of Banks

Date:
29^th August 2017 (Tuesday)

Time:
2:30 p.m. - 4:00 p.m. (GMT +8:00)

Venue:

CONFERENCE ROOM (3RD FLOOR) POSTGRADUATE BUILDING FACULTY OF ECONOMICS AND ADMINISTRATION UNIVERSITY OF MALAYA

Abstract

Theory provides ambiguous predictions on the effect of specialization on bank performance and risk. We propose a new stock return-based methodology to measure three dimensions of banks' sectoral concentration: specialization, differentiation, and financial sector exposure. Using these measures for a broad cross-section of banks and countries between 2002 and 2012, we find that bank volatility and systemic risk exposure decrease with banks' sectoral specialization and increase with banks' sectoral differentiation and financial sector exposure. These effects are significantly stronger in the long-run and robust to many alterations of the baseline setup.

Professor Dr. Thorsten Beck (6th Chairholder)

Professor Beck is a Professor of Banking and Finance at Cass Business School in London. He is also a research fellow of the centre for Economic Policy Research (CEPR), and is 6th Tun Ismail Ali Chair Chairholder. Previously, he worked in the research department of the World Bank. His research, academic publications and operational work have focused on two major questions: What is the relationship between finance and economic development? What policies are needed to build a sound and effective financial system? Recently, he has concentrated on access to financial services, including SME finance, as well as on the design of regulatory and bank resolution frameworks.

Charles Goodhart was the Norman Sosnow Professor of Banking and Finance at the London School of Economics until 2002; he is now an Emeritus Professor in the Financial Markets Group there. Before joining the London School of Economics in 1985, he worked at the Bank of England for seventeen years as a Monetary Adviser, becoming a Chief Adviser in 1980. During 1986, Prof. Goodhart helped to found, with Prof. Mervyn King, the Financial Markets Group at London School of Economics, which began its operation at the start of 1987. In 1997, he was appointed one of the outside independent members of the Bank of England’s new Monetary Policy Committee until May 2000. Earlier he had taught at Cambridge and London School of Economics.

Bank Sectoral Concentration and (Systemic) Risk: Evidence from a Worldwide Sample of Banks

Abstract

Professor Dr. Thorsten Beck (6th Chairholder)