Bank distress in the European Union 2008–2015: A closer look at capital, size and revenue diversification
18 March 2022 @ 3:00 pm - 5:00 pm
Online Research Seminar
3:00 pm, Friday, 18 March 2022
The recent global financial crisis has clearly highlighted the importance of the timely identification of weak banks. This paper introduces and analyses a new sample of European Union (EU) banks, which faced distress during 2008–2015 and provides evidence regarding the relationship between distress and bank-specific, macroeconomic, banking sector and stock market distress determinants, paying particular attention to issues that have been central following the crisis, such as capital, size, and revenue diversification. Our findings regarding these variables seem to “connect” well with current supervisory actions. The paper also focuses on banks in EU countries that faced economic problems and documents that the probability of distress in these countries has been influenced by different factors, in comparison to the rest of the EU.
About the speaker
Stelios Markoulis is an Associate Professor of Finance at CIIM, visiting faculty at University of Cyprus and an Honorary Visiting Research Fellow at Bayes Business School London (formerly Cass Business School). He studied finance at Bayes Business School (BSc, MSc, PhD) and London School of Economics (MSc). His main research interests focus on bank defaults; the wealth effects of bank regulation; and the effect of exogenous shocks on capital and currency markets. In the past, he also carried out research related to shipping initial public offerings and the micro- and macro-economic determinants of shipping stock prices. Within the area of shipping finance, he recently co-authored the paper ‘shipping stocks as lotteries’. Stelios has also worked for several years in the investment banking industry, where he obtained valuable experience in the areas of raising public and private capital from the equity and bond markets, mergers and acquisitions, and company valuation.