Supervisors sometimes have to manage both the micro- and macro- prudential dimensions of bank stability. These may either conflict or complement each other. We analyze prudential supervision by the Central Bank of Russia (CBR). We find evidence of micro-prudential concerns, measured as the...

We focus on the con.ict between two central bank objectives individual bank stability and systemic stability.We study the licensing policy of the Central Bank of Russia (CBR) during 1999.2002.Banks in poorly banked regions, banks that are too big to be disciplined adequately, and banks that are...

Policy makers often decide to liberalize foreign bank entry but put limitations on the mode of entry. We study how different entry modes affect the lending rate set by foreign and domestic banks. Our model captures two essential features of banking competition in emerging markets: Domestic banks...

Credit markets in many Eastern European countries are now dominated by foreign-owned banks. We analyze the development for foreign ownership and its impact on lending rate in ten Eastern European countries between 1995 and 2003. Currently, the majority of loans from foreign banks is granted by...

Policy makers often decide to liberalize foreign bank entry but at the same time restrict the mode of entry. We study how different entry modes affect the interest rate for loans in a model in which domestic banks possess private information about their incumbent clients but foreign banks have...

The Central Bank of Russia (CBR) assumes a wide range of functions not raditional to a central bank.In addition to the daily conduct of monetary policy, it acts as a regulator and supervisor of the banking sector.It is currently overssing the implementation of a deposit insurance scheme and is...

Policy makers often decide to liberalize foreign bank entry but at the same time restrict the mode of entry. We study how different entry modes affect the interest rate for loans in a model in which domestic banks possess private information about their incumbent clients but foreign banks have...

Understanding demand for state regulation is a foundational issue for social science. To account for this demand, existing theories rooted in market failure and government failure have focused on various forms of trust, but have paid little attention to fear. We test how fear and trust shape...

We examine the deep roots of preferences for vaccination against COVID-19, moving beyond proximate factors which can only account for part of the observable heterogeneity in the willingness to get vaccinated. Our model on experience-based learning predicts that exposure to past disruptive crises...

We develop an income shock classification taxonomy that classifies income changes into 9 categories based on the magnitude, direction and permamency of the income change. Using 01/2017 - 06/2022 bank transaction data of Belgian employees and workers, we apply this classification on labour income...