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Speaker: Ashagrie Demile Moges

Title: Liquidity shock and bank lending: Evidence from a natural experiment in Ethiopia.

Abstract: This paper provides new evidence on how a liquidity shock induced by regulation affects banking lending behavior in a developing country, exploiting the mandatory regulatory requirement of bill purchase as a natural experiment. We find that the effect of the policy change on the bank's most liquid asset, cash on hand, is immediate, stronger, and persisted for quite some time for banks that are larger and more liquid. The effects of the shock, however, propagated to the bank's loan supply five months after the implementation of the regulation. The result is robust after controlling for credit demand that may vary by sectors, regions, and loan types for some banks relative to others. The study further shows that banks' response to the liquidity shock varies by borrowers’ industries suggesting that banks adjust their loan portfolio towards less risky loans.

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Speaker: Giacomo Marcolin

Title:  Giacomo Marcolin presenting “Gig Work as Income Insurance during Unemployment: Evidence from Germany"