Speaker: Dr Eugene Nivorozhkin, University College London
Chair: Professor Victor Murinde, SOAS University of London
Time: Wednesday, 19 February 2020, 13:00-15:00
Venue: S314 (Paul Webley Wing, Senate House), SOAS University of London
Abstract
We examine the evolution of systemic risk in the Chinese banking sector over the last decade from the perspective of international investors. We apply the SRISK measure of systemic risk in a representative sample of listed Chinese institutions and utilize the Granger-causality network-based approach to demonstrate the extensive and complex interlinkages among Chinese banks beyond the largest financial institutions. We show and explain a dramatic increase in systemic risk after 2011 across the entire sector. We identify a common pattern between systemic risk and the booming Chinese housing market, as well as shadow banking activities, reminiscent of the US economy prior to the global financial crisis. We also show that economic policy uncertainty and systemic risk are closely connected. According to our results, international concerns about the stability of the Chinese banking system are well justified and a systemic event with international impact could be caused by distress in a Chinese financial institution outside of the group of the largest banks.
Seminar Presenter
Dr Eugene Nivorozhkin is an Associate Professor in Finance at University College London. During his academic career, Eugene worked as an Assistant Professor in Finance at University of Groningen, University of Gothenburg, and held visiting positions at the Wharton Business School of University of Pennsylvania, the Copenhagen Business School, Uppsala University, the Bank of Finland’s Institute for Economies in Transition (BOFIT), City University London, Brunel University, Jagiellonian University, Freie Universität Berlin, and Corvinus University of Budapest. Eugene's research interests span theoretical and empirical work in the areas of corporate finance, banking regulation, market for corporate control, capital markets, economics of education and applied labour economics. He actively provides commentary in mass media (e.g., Bloomberg News, BBC Radio, The Guardian), and engages in consulting services for public and private organisations.