Stress in the banking sector | SHoF March Newsletter

In this issue:

• Comments on the recent bank collapses
• Seminars on the state's role in the payment market, household debt in Sweden and the role of stock exchanges in funding companies
• Feature articles on household risks and the underrepresentation of women in financial research
• Annual report 2022: Finance during turbulent times

STRESS IN THE BANKING SECTOR

March saw growing stress in the banking sector with the collapses of Silicon Valley Bank, Signature Bank, and a last minute rescue of Credit Suisse. SHoF’s researchers comments on the recent events that have stirred the financial community and sparked concerns about the possibility of a bank run and a broader financial crisis.

Interview: What’s going on with the banks right now?

Bo Becker, SHoF Director, discusses the recent bank collapses, the regulatory landscape, and the potential risks facing European and Swedish banks.

Podcast: Too big to fail

Per Str?mberg, SSE/SHoF, spoke to Kapitalet, a Swedish financial economics podcast, about the concept “too big to fail” and lessons learned from the global financial crisis.

In the press:

• "Experts: Fear of unrealized losses contributes to bank panic", Dagens Industri, March 10. (Bo Becker)
• "Professors: the American bank crisis will not turn into a new financial crisis", Aftonbladet, March 13. (Bo Becker)
• "Professor: 'Slight risk of this spreading to Sweden'", SVT, March 13. (Bo Becker)
• "Crisis - but not a repeat of the financial crash", TT News Agency vis SvD, March 13. (Per Str?mberg)
• "Too big to fail", Kapitalet, Mar 7. (Per Str?mberg)
• "Should you be worried about the banks?", SvD, March 28. (Bo Becker)

RESEARCH IN THE SPOTLIGHT

Researchers’ view: Household risks in times of financial stress

SHoF's researchers discuss different aspects on how rising interest rates, high inflation, and low growth affect the financial health of households and how different investment strategies may impact wealth inequality.

Only 20% of researchers in finance at leading universities are women

SHoF launches “Women in Finance Data", a tool that monitors the participation of women working with financial research. The data will be updated each year to facilitate fact-finding and induce action from academic institutions.

UPCOMING EVENTS

April 4: The household sector’s exposure to financial risk

High household debt ratios can be a systemic risk when interest rates rise, and some groups may be more exposed than others.

Join a seminar with Professor Paolo Sodini, SSE/SHoF, Henrik Braconier, from Finansinspektionen, Arturo Arques from Swedbank and Shoka ?hrman from SPP where they will discuss issues relating to indebtedness in the Swedish household sector.

April 25: How to develop equity capital markets in Europe and the US

Access to funding is essential for economic growth. Join us for a seminar on recent trends on the equity markets.

Professor Alexander Ljungqvist, SSE/SHoF, Eun Ah Choi, Head of Surveillance Nasdaq US, and Johan Almenberg, State Secretary to the Minister for Financial Markets, will discuss the role of stock exchanges in funding companies against the background of shrinking public markets and regulators’ responses, including the EU Commission’s proposed Listing Act.

Save the date

• March 31: SNS/SHoF Finance panel: Sweden's future payment ecosystem
• April 4: The household sector’s exposure to financial risk
• April 25: How to develop equity capital markets in Europe and the US
• May 23: Harnessing Finance for Climate
• August 22: The Effects of New Geopolitical Risks on Financial Markets and Firms

ANNUAL REPORT

Finance during turbulent times: SHoF’s Annual Report 2022 is now available. The annual report features some of the research that is being carried out at the Swedish House of Finance.

Some highlights:

• The role of banks in financial crises.
• Evaluating sustainability ratings tools.
• Household investments during bad times.
• The future of cryptocurrencies and CBDCs.
• The impact of artificial intelligence and machine learning on finance.

Read here

About Swedish House of Finance

The Swedish House of Finance at the Stockholm School of Economics was founded in 2011 through a government initiative to strengthen financial research in Sweden.?Today it is one of the top research institutions in Europe. The Swedish House of Finance promotes a dialogue between researchers and decision-makers in the private and public financial sector.