Upon assuming control of Baoshang Bank, Chinese bank regulators announced that they would eschew bailing out large creditors of this city-level distressed bank in full. This paper investigates the consequences of this unexpected deviation from the long-standing full bailout policy. Employing a...

We examine the effect of regional favoritism on firms’ access to credit. Using firm-level data on a large sample of 29,000 firms covering 48 countries, we investigate the hypothesis that access to credit of firms is higher in the birth regions of national political leaders. We find evidence...

We evaluate the impact of loan-to-value restrictions on household financial vulnerability. Using Norwegian tax data, we first document a beneficial leverage effect, in which households respond to the regulation by reducing house purchase probabilities, debt and interest expenses. Second, we...

This paper studies how banks compete amid digital disruption and the resulting distributional effect across consumers. Digital disruption increases the geographic coverage of banking services, bringing new entrants to local markets. However, as digital customers shift from branches to digital...

The ageing population and increases in longevity have drawn attention to the management of longevity risk in pension funds, life insurers and health insurers. Governments face the challenge of financing an ageing population with longer life spans and providing an environment conducive to private...

Due to the impact of COVID-19, the conference was moved to online. The conference welcomes theoretical or applied research papers on risk or insurance topics. Specific subject areas include, but are not limited to, financial/insurance literacy, digitalization, ESG/sustainability, insurance...

Insurance industry is changing fast due to the development of emerging digital technologies, which inspire new insights into all facets of insurance company operations and risk management. In this context, it is our vision to recognize the significance of both theoretical actuarial research and...

Using an international panel of banks, we study whether banks’ capitalization and risk-taking are shaped by their prior economic experience. We find that, on average, bank’s past undercapitalization experience leads to more prudent lending and higher capitalization. However, we show that...

Entrepreneurs appear to borrow largely against their near-term revenues, even when their investment has a longer horizon. In this paper, we develop a model of credit horizons. A question of particular concern to us is whether persistently low interest rates can stifle economic activity. With...