About
As has become evident in the aftermath of the global financial crisis, financial intermediaries are key to the functioning of the real economy. The banking research group focuses on understanding and improving the organization, functioning, and regulation of banks, with a view on implications for credit and investment, GDP growth, and unemployment.
Research topics
Since the financial crisis, bank regulation has undergone a significant transformation. The ultimate question is whether these changes have been effective at improving the resilience of the banking system. One line of our group’s research focuses on measuring and evaluating the new regulatory policies such as bonus payout regulation, countercyclical capital buffer, contingent convertible bonds, expected provisioning requirements, and the global derivatives market reform. Another line of research examines issues related to excessive accumulation of non-performing loans in banks’ portfolios—the problem that has been particularly relevant in the EU. Our research also focuses on the effect of monetary policy and banking network structure on bank stability, the importance of which was highlighted in the aftermath of the crisis. Finally, some of the recent research has been conducted in the area of green finance with a particular focus on the role of banking in climate change.
Books
About
As has become evident in the aftermath of the global financial crisis, financial intermediaries are key to the functioning of the real economy. The banking research group focuses on understanding and improving the organization, functioning, and regulation of banks, with a view on implications for credit and investment, GDP growth, and unemployment.
Research topics
Strong bank-firm relationships are important in relaxing borrower’s credit constraints. An ongoing research theme focuses on measuring the intensity of bank-firm relationships and studying the impact on shocks to banks to identify the benefits of bank-firm relationships for firms, banks, and the real economy. Other research focuses on the interaction of banks’ behavior with the business cycle and aggregate economic conditions. Another line of research focuses on financial intermediation in developing economies studying both the institutional design of financial services and products offered as well as the impact on clients and financial markets. Our work contributes to a better understanding of banks’ business models and lending standards, as well as to the design of micro- and macroprudential regulation in a variety of economic settings.
Key papers
› Degryse H. and S. Ongena. 2005. “Distance, Lending Relationships and Competition.” Journal of Finance, 231-266.
› Ferrari S., F. Verboven and H. Degryse. 2010. “Investment and Usage of New Technologies: Evidence from a Shared ATM Network.” American Economic Review 100, 1046-79.
› Degryse H., N. Masschelein and J. Mitchell. 2011. “Staying, Dropping or Switching: The Impacts of Bank Mergers on SMEs.” Review of Financial Studies 24: 1102-1140.
› Mariathasan, M., and O. Merrouche, 2012, Recapitalization, Credit and Liquidity, Economic Policy 72, 603-646.
› Mariathasan, M., and O. Merrouche, 2014, The Manipulation of Basel Risk Weights, Journal of Financial Intermediation, 300-321.
› Jiménez G., S. Ongena, J-L. Peydró and J. Saurina, 2014, Hazardous times for monetary policy: What do twenty-three million bank loans say about the effects of monetary policy on credit risk?, Econometrica, 82 (2), 463-505.
› Degryse H., V. Ioannidou and E. von Schedvin. 2016. “On the Non-Exclusivity of Loan Contracts: An Empirical Investigation.” Management Science 62, 3510-533.
› Beck, T., H. Degryse, R. De Haas, and N. Van Horen, 2017, "When Arm’s Length is too Far. Relationship Lending over the Credit Cycle", forthcoming in Journal of Financial Economics.
› Jiménez, G., S. Ongena, J.-L. Peydró and J. Saurina, 2017, Macroprudential policy, countercyclical bank capital buffers and credit supply: Evidence from the Spanish dynamic provisioning experiments, forthcoming in Journal of Political Economy.
› D’Espallier, B., J. Goedecke, M. Hudon, and R. Mersland, 2017, “From NGOs to banks: does institutional transformation alter the business model of microfinance institutions?”, World Development 89, 19-33.
› Beisland, L.A., B. D’Espallier, and R. Mersland, 2018, “The Commercialization of the Microfinance Industry: Is There a ‘Personal Mission Drift’ Among Credit Officers?”, forthcoming in Journal of Business Ethics.
Key papers
› Bonfim, D., Cerqueiro, G., Degryse, H., & Ongena, S. (2022). On-site inspecting zombie lending. Forthcoming in Management Science. › Degryse, H., Karagiannis, N., Tombeur, G. & Wuyts, G. (2021). Two shades of opacity: hidden orders and dark trading. Forthcoming in the Journal of Financial Intermediation
› Freund, S., Nguyen, H. T., Phan, H. V. & Tang, H. T. (2021). CEO inside debt and internal capital market efficiency. Journal of Corporate Finance. › Flore, C., Degryse, H., Kolaric, S. & Schiereck, D. (2021). Forgive me all my sins: How penalties imposed on banks travel through markets. Journal of Corporate Finance › Degryse, H., Karapetyan, A. & Karmakar S. (2020). To ask or not to ask? Bank capital requirements and loan collateralization. Journal of Financial Economics.
› Degryse, H., Karas, A., Schoors, K. (2019). Relationship Lending during a Trust Crisis on the Interbank Market: A Friend in Need is a Friend Indeed. Economics Letters.
› Degryse, H., De Jonghe, O., Jakovljevic, S., Mulier, K. & Schepens, G. (2019). Identifying credit supply shocks with bank-firm data: Methods and applications. Forthcoming in Journal of Financial Intermediation.
› Degryse, H., Matthews, K., Zhao, T. (2018). SMEs and Access to Bank Credit: Evidence on the Regional Propagation of the Financial Crisis in the UK. Journal of Financial Stability.
› Beisland, L.A., D’Espallier, B. & Mersland, R. (2018). The Commercialization of the Microfinance Industry: Is There a ‘Personal Mission Drift’ Among Credit Officers?. Journal of Business Ethics.
› D’Espallier, B., Goedecke, J., Hudon, M., & Mersland, R. (2017). From NGOs to banks: does institutional transformation alter the business model of microfinance institutions?. World Development.
› Jiménez, G., Ongena, S., Peydró, J.-L. & Saurina, J. (2017). Macroprudential policy, countercyclical bank capital buffers and credit supply: Evidence from the Spanish dynamic provisioning experiments. Journal of Political Economy.
› Beck, T., Degryse, H., De Haas, R. & Van Horen, N. (2017). When Arm’s Length is too Far. Relationship Lending over the Credit Cycle. Journal of Financial Economics.
› Degryse, H., Ioannidou, V. & von Schedvin, E. (2016). On the Non-Exclusivity of Loan Contracts: An Empirical Investigation. Management Science.
› Jiménez, G., Ongena, S., Peydró, J-L. & Saurina, J. (2014). Hazardous times for monetary policy: What do twenty-three million bank loans say about the effects of monetary policy on credit risk?. Econometrica.
› Mariathasan, M. & Merrouche, O. (2014). The Manipulation of Basel Risk Weights. Journal of Financial Intermediation.
› Mariathasan, M. & Merrouche, O. (2012). Recapitalization, Credit and Liquidity. Economic Policy.
› Degryse, H., Masschelein, N. & Mitchell, J. (2011). Staying, Dropping or Switching: The Impacts of Bank Mergers on SMEs. Review of Financial Studies.
› Ferrari, S., Verboven, F. & Degryse, H. (2010). Investment and Usage of New Technologies: Evidence from a Shared ATM Network. American Economic Review.
› Degryse, H. & Ongena, S. (2005). Distance, Lending Relationships and Competition. Journal of Finance.
Meet the experts
Degryse Mariathasan Ongena D'Espallier
Books