Co-authors: Domenico Giannone (Amazon.com) and Anna Kovner (Federal Reserve Bank of New York) We study the relationship between bank capital ratios and the distribution of future real GDP growth. Growth in the aggregate bank capital ratio corresponds to a smaller left tail of GDP—smaller...

Does income inequality affect banks' credit-risk reallocation when facing financial distress? Using novel branch-level data on Colombian banks I find that facing a large liquidity shock, exposed banks shift more credit towards low-risk borrowers in municipalities with higher income inequality....

We present unique data on governance in Russian financial institutions. Despite the recent introduction of the corporate governance code, we observe large cross-sectional differences in the composition of supervisory and executive boards of directors of Russian banks. We begin analyzing the data...

Online BOFIT seminars are open to all researchers interested in the subjects covered.

The conference will focus on data, digitalization, decentralized finance, central bank digital currencies and the future of money. A distinguished group of senior representatives from the public and private sectors as well as prominent academic thought leaders will discuss the key issues around...

Loan-to-deposit ratio may bring unintended consequences on the financial stability. We employ China’s LDR deregulation in 2015 to examine the effect of LDR on bank stability. We show that the deregulation of LDR increases the stability of banks with high LDR. Specifically, the deregulation of...

We investigate whether the occurrence of elections affect access to credit for firms. We perform an investigation using firm-level data covering 44 developed and developing countries. We find that elections have a detrimental influence on access to credit: firms are more credit-constrained in...

The AFBC is the most significant and prestigious finance conference in the Asia-Pacific region. It brings together the world's foremost leaders of thought from the financial community, providing international academics and industry professionals with the opportunity to meet and share their...

Themes: - Not a Typical Firm: The Joint Dynamics of Firms, Labor Shares, and Capital-Labor Substitution; - Firm Heterogeneity and the Impact of Immigration: Evidence from German Establishments; - Productivity Impacts of Seasonal Migration: Evidence from New Zealand; - New-Keynesian Trade:...

How important is a relationship with a bank to a firm’s performance and survival? If firms can easily switch among different sources of credit supply, then the loss of any one source may have little implication for the firms that have borrowed from that source. However, to the extent that...