Università Cattolica del Sacro Cuore

Banking and Finance

Several members of the Department of Economics and Finance do research on a variety of applied topics in Banking and Finance.

Several contributions are in the area of Banking. Among them, the more recent research activity has focused on the role of banks in amplifying the business cycle, due to the pro-cyclicality of their leverage. The regulation and supervision of the banking sector has been addressed, with particular attention to the European Banking Union. The interplay between the sovereign and bank risks in the euro area has been analyzed, to measure the systemic risk in this area. A specific issue is that related to the functioning on the payment system and its link with the money market.

Other research topics are in the area of Corporate Finance. Among them, there is the role of managers’ compensation in corporate governance, focusing on the distortions introduced by incentive schemes. Other contributions have analyzed the funding conditions of small-medium size firms (SMEs).

Finally, monetary policy has been addressed, with particular attention to its interplay with fiscal policy and to the institutional features of the euro area.

Among the research contributions of Department’s members in this area are:

Baglioni A., The European Banking Union. A Critical Assessment, Palgrave Macmillan, UK, 2016.

Baglioni A., Beccalli E., Boitani A. and A. Monticini, Is the leverage of European banks pro-cyclical?, Empirical Economics, vol.45, 2013.

Baglioni A. and Cherubini U., Within and between systemic country risk. Theory and evidence from the sovereign crisis in Europe, Journal of Economic Dynamics and Control, vol.37, 2013.

Baglioni A. and Colombo L., Managers’ compensation and misreporting. A costly state verification approach, Economic Inquiry, vol.47, n.2, 2009.

Baglioni A. and Monticini A., The intraday price of money: evidence from the e-MID inter-bank market, Journal of Money, Credit and Banking, vol.40, n.7, 2008.

Beccalli E., Boitani A. and Di Giuliantonio S., Leverage pro-cyclicality and securitization in US banking, Journal of Financial Intermediation, Vol. 24, Issue 2, 2015.

Frazzoni Z., Mancusi M., Rotondi M., Sobrero and A. Vezzulli (2018), Export and Innovation in Small and Medium Enterprises: The Role of Concentrated Bank Borrowing, Economica, Vol. 85(337).

Mancusi, M. and A. Vezzulli (2014), R&D and Credit Rationing in SMEs, Economic Inquiry, Vol 52(3).

Terzi, A. (2016), In the absence of fiscal union, the Eurozone needs a more flexible monetary policy: A comment. PSL Quarterly Review, Economia Civile, 69(278), 279-285.

Terzi, A. (2016). A T-shirt model of savings, debt, and private spending: lessons for the euro area. European Journal of Economics and Economic Policies: Intervention, Edward Elgar Publishing, 13(1), 39-56.