Segnalazione da ECB Research Bulletin: "Model-based regulation: lending in times of Covid"

Segnalazione da ECB Research Bulletin: "Model-based regulation: lending in times of Covid"

(...) the latest issue (No. 102) of the ECB Research Bulletin, is entitled "Model-based regulation: lending in times of Covid".

Franco Fiordelisi (University of Essex), Giulia Fusi (European Stability Mechanism), Angela Maddaloni and David Marques-Ibanez (both Directorate General Research, European Central Bank) examine whether model-based bank regulation constrained lending during the COVID-19 crisis. 

Results show that banks using their own models extended less credit than banks using a standardised approach. This outcome was not dependent on borrowers’ characteristics or on the credit booms seen in some countries, but was connected to the IRB models (IRB stands for internal ratings-based or credit risk) that some banks use. (...)