Thorsten Beck, Jan Keil, 11 March 2021

Across the globe, economies have been hit hard and fast by COVID-19. This column explores the effect of the pandemic on US banks’ health and their ability to support the economy with lending, using a novel measure to gauge banks’ exposure to COVID-19 and lockdown measures. The findings suggest that banks are catching coronavirus, although the effect is not so obvious from bank balance sheets given the easing of regulatory requirements on loan classification and provisioning. Exposure to COVID has led to an increase in lending to support the economy, but driven by government support programmes, as well as a tightening in loan conditionality. 

Charles Goodhart, Dirk Schoenmaker, 28 March 2016

The European banking system is downsizing. As a consequence, the big US investment banks are on the rise in Europe. This column argues that US investment banks are about to surpass their European counterparts in the European investment banking market. The authors also discuss why leaving global investment banking to the big five American banks might be problematic and offer policy response recommendations.

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