We are pleased to invite you to Wednesday’s research seminar. It will be held on Wednesday 28th February, from 4pm, at Middlesex University Dubai in the Oasis Theatre, Block 16, Knowledge Park. The Research Seminar Series was launched in 2008, and has featured more than 220 presentations to date. The seminars provide a forum for researchers to share their work. Presenters include faculty from Middlesex University Dubai and other universities in the United Arab Emirates, as well as researchers from other global institutions. This week’s presentation is:
The Interbank Market Puzzle
IÉSEG School of Management and the Polish Academy of Science
This study documents significant differences in the interbank market lending and borrowing levels across countries. We argue that the existing differences in interbank market usage can be explained by the trust of the market participants in the stability of the country’s banking sector and counterparties. We test our assumptions by employing different proxies for trust in the countries’ banking sectors and by controlling for bank-specific risk. We find that banks originating from a country that has experienced longer periods of banking crises or more bank failures are able to attract less interbank deposits. However, we find that the quality of legal regulations and institutions can help mitigate the adverse impact of the low level of trust in the banking system. Hence, institutional factors might partially substitute for the limited trust and enhance interbank activity.
Dr. Oskar Kowalewski is Associate Professor in Finance at IÉSEG School of Management in Paris and Fellow of the Wharton Financial Institutions Center at the University of Pennsylvania. He was previously Associate Professor at the Warsaw School of Economics, Kozminski University and the Polish Academy of Science. In the years 2004-2005 he was Kosciuszko Fellow at the Wharton School at the University of Pennsylvania, where he was again a Visiting Researcher in the years 2009-2011. In the years 2012-14 he was DAAD Visiting Professor at the European University Viadrina (Frankfurt), Germany. His primary research areas include financial system development, banking, and corporate governance. Currently, he works on a research study on the interbank markets and performance of multinational banks as well governance of family firms. Oskar received his habilitation in finance from the Warsaw School of Economics in 2014. He holds Ph.D. and M.S. degrees from the Kozminski University (Warsaw) and an LLM degree from the Maria Curie-Skłodowska University in Lublin.