School of Business and Economics

The Centre for Post-Crisis Finance (CPCF) conducts research on many of the key issues facing the financial services industry, in the wake of the global financial crisis.
It also serves as a platform for the wide range of work on financial markets and institutions carried out across the school.

The crisis has triggered profound changes in financial markets and institutions, including:

• The ongoing and wide ranging re-regulation of financial services with a host of new requirements coming from global, European and national regulators.
• A fundamental change in the business and economic environment, for savers, investors and intermediaries.
• Business models that seemed successful before the crisis have turned out to be flawed.
• Investors have been driven towards the safest and hence lowest yield assets, leaving gaps in the supply of finance for longer term and riskier investment opportunities.
• New macroeconomic relationships, post-crisis, with interactions between the financial sector and the wider economy now playing a critical role in determining both growth and fluctuations of economic activity.
• A shift in economic and financial activity, from the industrial west to emerging markets, especially Asia

Research of the kind we pursue at CPCF has a vital contribution to make to these crucial debates, offering independent and rigorous analysis uninfluenced by either political pressures or special interests.

We also have a particular interest in the applications of information technology to the financial sector and the possible ways in which this may address the challenges of post-crisis finance.

Subject to maintaining our independence, we welcome opportunities for engagement and collaboration with policy institutions and firms, to ensure the practical relevance of our work.

 

 

Our Research

The work of the centre is grouped under four different themes, with four co-ordinators who form the centre’s academic steering group.

Theme	Co-ordinator
Market pricing and efficiency	Alistair Milne
Long term finance	Mark Freeman
Financial structure and regulation	Max Hall
Central banking and macroeconomic stability	Joe Pearlman

• Market pricing and efficiency covers the core areas of asset and derivative pricing and investment management. These topics are central to the work of any finance research group. We also pursue work on the market role of information systems and also of market infrastructures such as trade repositories and central counterparties.
• Long term finance. This theme addresses the allocation of savings to long term and risky investments, for example Mark Freeman is working on the valuation of very long term intergenerational investments.
• Financial structure and regulation is an established core area of Loughborough research. We continue to do leading work on the impact of regulation and especially the major regulatory changes following the financial crisis, on the financial systems of both industrial and emerging market countries.
• Central banking and macroeconomic stability. A leading group of macroeconomic researchers at the school are also attached to research centre and amongst other issues are addressing the interactions between the financial sector and the macroeconomy and the role of central banks and other policy institutions in achieving monetary and financial stability.

As well as these broad themes, the centre will also be pursuing specific research initiatives, on particular post-crisis finance issues. Work envisaged includes the provision of finance to the real economy and the adjust of the sector to the new regulatory regimes.

 

Activities

The centre is promoting a number of events, seminars and workshops over the coming year. These include:

November 7th 2012, The Loughborough Lectures, John Kay will be coming to Loughborough to deliver the first of what we plan to be a regular series: The Loughborough Lectures on Finance and the Real Economy.
You can watch the lecture here>>

September 19th &20th 2012, Macroeconomics and Macroprudential Regulation Conference. Conference timetable, Conference paper Abstracts. Download the conference papers below.

• Liquidity Term Spreads
• Macro Prudential Policy and Credit
  
• Model of Investment Subject to Financing constraints
• Optimal policy behind a Veil of Ignorance
• Optimal Macro-Prudential and Monetary Policy
• Reserves liquidity and Money
• Universal Banking Asymmetric Information
• What causes banking crises An empirical investigation

May 31st 2012, London launch,  a debate on the Vicker’s commission’s proposals for ring-fencing of UK retail banking, between Charles Goodhart of the London School of Economics (criticising the reforms) and Alistair Milne (supporting the reforms); followed by a round table discussion on the banking business models of the future. It is intended that this be the first of a regular series of London events, focussed on very specific issues.

May 17th 2012, Seminar to be given by David Bholat of the Bank of England and the University of Newcastle on the failure of Northern Rock.  Regular invited seminar speakers.

May 15th 2012. PhD workshop. The first of regular workshops offering the opportunity for presentation of preliminary research

March 22nd 2012, the Loughborough launch , a one day event put on in collaboration with the economists in the school working on productivity analysis. This hosted a number of leading international and UK researchers, from both universities and policy institutions, for presentation and discussion of papers on both productivity and on financial structure and regulation.

Research Students

Bin Xu
Georgios Mylonas
Michael Mustapha Osaze Yahaya
Xiao Yu
Rene-Christian Kumsta
Henry Agyei-Boapeah
A S Sahota
Aloysius Obinna Igboekwu
M L Yan
I-Chen Lu