BEGIN:VCALENDAR
VERSION:2.0
PRODID:-//Memento EPFL//
BEGIN:VEVENT
SUMMARY:Why did bank stocks crash during COVID-19?
DTSTART:20220204T103000
DTEND:20220204T114500
DTSTAMP:20260502T104827Z
UID:3c5f484847736ee0896e5da70d8f744e4fb4cae62b6d46d5245e9a2b
CATEGORIES:Conferences - Seminars
DESCRIPTION:Sascha Steffen\, Frankfurt School\nWe provide evidence consist
 ent with a “credit-line drawdown channel” to explain the large and per
 sistent crash of bank stock prices during the COVID-19 pandemic. Stock pri
 ces of banks with large ex-ante exposures to undrawn credit lines and larg
 e ex-post gross drawdowns declined more\, especially of banks with weaker 
 capital buffers. These banks reduced new lending\, even after stabilizatio
 n policies and even if drawdowns were accompanied by deposit inflows. Bank
  provision of credit lines appears akin to writing deep out-of-the-money p
 ut options on aggregate risk\; we show how the resulting risks can be inco
 rporated tractably into bank capital stress tests.
LOCATION:Zoom
STATUS:CONFIRMED
END:VEVENT
END:VCALENDAR