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Finance

20 July, 2020
No credit crunch (yet) – but here is why we should be worried

Prof. Dr. Sascha Steffen

The ECB has just published its Bank Lending Survey for the second quarter. The survey provides a window in bank lending in the euro area and, in particular, the supply of loans by banks to the non-financial sector. Taken at face value, the numbers are not that bad. We observe only a small tightening of lending standards across the euro area, large firms do not experience any tightening while small and medium enterprises face somewhat stricter supply conditions. 
15 September, 2020
The COVID-19 Pandemic and the Importance of Financial Inclusion
Ricardo A. Estrada Villalta
Never in modern history has financial inclusion been more relevant. Never in the past has granting access and fostering usage to quality financial services and all-around financial solutions for the people had more meaning. Among these much-needed solutions, there is a special mention to digital financial services, which are, in fact, quite compatible with the current global social distancing measures.
Sustainable finance is an important topic for regulators in China. Chinese banks will soon be subject to green finance performance review on a quarterly basis. A consultation document by the Chinese central bank describes the procedures and metrics based on which the banks will be evaluated.
12 August, 2020
Regulatory authorities in China will review banks’ green finance performance
Menglu Neupert-Zhuang
1 October, 2019
Institutional Investors’ Views and Preferences on Climate Risk Disclosure
Zacharias Sautner
Financial market efficiency relies on timely and accurate information regarding firms’ risk exposures. An increasingly important risk exposure relates to climate change. Climate risks can originate from more severe and more frequent natural disasters, government regulation to combat a rise in temperature, or climate-related innovations that disrupt existing business models.
Basically a financial market is a machine that takes money from investors and distributes it to entre­preneurs that need money for their businesses. Those businesses promise a return to the investors. Depending on the business an in­vestment comes with a certain risk.
12 March, 2019
What is sustainable finance?
Ulf Moslener
5 May, 2020
Have you felt the sustainable finance-related regulatory attention already?

Menglu Neupert-Zhuang

Together with Karsten Löffler and Sebastian Rink, we have written a chapter in the new book on sustainable finance Nachhaltige Finanzwirtschaft. In our chapter, we provide a historical look-back on the fast regulatory developments in Europe, inter alia Germany and make several suggestions on how financial institutions could prepare themselves for the upcoming challenges and opportunities. If you have already felt the regulatory attention in your job, it is time to get an overview on the current situation.
25 March, 2020
How the Corona crisis will affect blockchain ecosystems

Prof. Dr. Philipp Sandner

The Corona virus crisis is also affecting the crypto market. In this short article, I seek to present some thoughts about the effect of the Corona virus on the blockchain sector — including startups, corporates and Bitcoin.
9 August, 2018
The Tragedy of the Horizon: A Mandate for Financial Sector Regulations?
Oliver Schenker
Investment to the tune of around $6.3 trillion per annum in core infrastructure, energy efficiency and energy production is required globally over the next 15 years. Making these infrastructure investments consistent with the goal to limit global temperature increase to 2°C as stated in the Paris Agreement requires an additional $600 billion per year and a major change in the composition of investment towards zero or low-carbon assets, climate resilient sectors, and adaptation infrastructure.
The Belgium lender Dexia was a quintessential example with respect to risk-taking behavior of large European banks during the 2007-2009 global financial and subsequent European sovereign debt crisis. Towards the end of 2010, Dexia had built a huge portfolio of risky sovereign bonds (issued by Greece, Ireland, Italy, Portugal and Spain (GIIPS)) after yields have widened substantially betting on a compression of sovereign bond yields to pre-crisis levels.
26 July, 2018
This time’s the same: Eurozone sovereign and financial sector credit risk
Prof. Dr. Sascha Steffen
15 September, 2017
Why Does an Equal-Weighted Portfolio Outperform Value- and Price-Weighted Portfolios?
Grigory Vilkov
Simplicity is everything! According to Ockham's razor or "law of parsimony," among competing hypotheses, the one with the fewest assumptions should be selected. What can be simpler than an equal-weighted portfolio?
Die Regierung (ersatzweise die EZB, „die Banken“ oder schwarze Mächte) will das Bargeld abschaffen! Dieser Panikruf schallt durch Talk-Shows und Gazetten. Demnach gibt es demnächst keine
20 September, 2016
Abschaffung des Bargelds – eine Geisterdebatte
Jürgen Moormann
19 February, 2020
Banking 2020: tradition vs. high tech

Jürgen Moormann

European banks – and German banks in particular – are currently experiencing an unprecedented upheaval. A combination of multiple trends is driving this radical transformation of the banking sector.
5 November, 2019
Sentimental Recovery

Grigory Vilkov

Financial markets are constantly evolving, providing investors with more efficient ways to trade, with instruments spanning more states of nature, making markets more complete. For example, in the last decade, instruments giving direct access to volatility, such as VIX futures, have shown an enormous gain in popularity.
27 July, 2016
Do Private-Equity Firms Create Value in Cross-Border M&A?
Zacharias Sautner
Cross-border mergers and acquisitions (M&A) have become increasingly important, comprising, in terms of deal value, about 40% of all M&A. Yet, cross-border deals are exposed to severe problems
Contracts between firms are at the heart of economics. In a new paper, me and my co-author Rajkamal Iyer from MIT Sloan School of Management study how contracts between buyers and sellers are
21 June, 2016
How do Contracts between Firms address Opportunistic Behavior?
Zacharias Sautner
No credit crunch (yet) – but here is why we should be worried
20 July, 2020
Prof. Dr. Sascha Steffen
The COVID-19 Pandemic and the Importance of Financial Inclusion
15 September, 2020
Ricardo A. Estrada Villalta
Regulatory authorities in China will review banks’ green finance performance
12 August, 2020
Menglu Neupert-Zhuang
Have you felt the sustainable finance-related regulatory attention already?
5 May, 2020
Menglu Neupert-Zhuang
Institutional Investors’ Views and Preferences on Climate Risk Disclosure
1 October, 2019
Zacharias Sautner
What is sustainable finance?
12 March, 2019
Ulf Moslener
How the Corona crisis will affect blockchain ecosystems
25 March, 2020
Prof. Dr. Philipp Sandner
The Tragedy of the Horizon: A Mandate for Financial Sector Regulations?
9 August, 2018
Oliver Schenker
This time’s the same: Eurozone sovereign and financial sector credit risk
26 July, 2018
Prof. Dr. Sascha Steffen
Banking 2020: tradition vs. high tech
19 February, 2020
Jürgen Moormann
Why Does an Equal-Weighted Portfolio Outperform Value- and Price-Weighted Portfolios?
15 September, 2017
Grigory Vilkov
Abschaffung des Bargelds – eine Geisterdebatte
20 September, 2016
Jürgen Moormann
Sentimental Recovery
5 November, 2019
Grigory Vilkov
Do Private-Equity Firms Create Value in Cross-Border M&A?
27 July, 2016
Zacharias Sautner
How do Contracts between Firms address Opportunistic Behavior?
21 June, 2016
Zacharias Sautner