Below is a list of articles from the Banking and Finance magazine.
The Capital Asset Pricing Model (CAPM) assumes a positive risk-return relationship. This positive risk- return relationship has been questioned and rejected in literature due to the existence of other persistent factor premia.
This article examines how the European Central Bank's (ECB) green policy announcements impact the performance of green bonds, focusing on five green ECB speeches.
Since the beginning of this year, the ECB and the NBB have been publishing data on the distribution of household wealth: the distributional wealth accounts (DWA). These experimental statistics are based on the macro data from the National Accounts and on the micro data from the Household Finance and Consumption Survey.
In 2023, the NBB has asked a sample of financial market infrastructures, custodians, payment transaction processors and critical service providers to complete a questionnaire on climate-related risks. The answers showed that the institutions are aware of climate-related risks and that these risks are adequately embedded in the governance framework. However, ...
Euroclear Bank played and continues to play an important role in the implementation of international sanctions against Russia. A large share of the assets affected by these sanctions were safeguarded and, following the imposition of the sanctions, effectively frozen or immobilised in the accounts of Euroclear Bank.
The Digital Operational Resilience Act (DORA) aims to enhance the digital resilience of the European financial sector by addressing ICT risks through comprehensive governance, incident management, resilience testing, third-party risk management, and awareness initiatives. Effective from January 2025, DORA targets a wide range of financial entities, ensuring harmonized and stringent ICT security measures across the EU.
Swift is a financial messaging services provider that is subject to central bank oversight because of its crucial global role in facilitating correspondent banking and financial market infrastructure operations. The article describes the set-up and focus areas of the international cooperative oversight arrangement for this central bank oversight and announces a planned update to this arrangement.
This study confronts micro-level data on asset allocation with low interest rates and monetary policy for a broad set of defined benefit pension funds in the United States. Findings indicate that funds increase their investments in equity assets and decrease their investments in fixed-income assets in response to interest rate reductions. Strikingly, the passive portfolio movements through mechanical return effects explain the most significant part of the observed change.
This article examines the impact of equity crowdfunding on small business performance, focusing on financial outcomes and survival rates. Using data from the Belgian platform Spreds and methods like matching techniques and generalized linear models, the study found that equity-crowdfunded (ECF) firms generally perform worse and face higher failure rates compared to non-equity crowdfunded (NECF) firms.
This paper examines the role of institutional investors in responding to climate change concerns and whether they are more reactive than retail investors. By analyzing S&P 500 data from 2010 to 2021, the study explores the relationship between stock returns, emissions intensity, and unexpected climate concern captured through media analysis.
The Belgian economy has recently shown great resilience, and fears of a recession have given way to the greater likelihood of a soft landing. The outlook for financial stability is therefore much better than it was in the second half of 2022.
This short piece describes the answers given during the Q&A regarding the 2024 NBB-Financial Stability Report (Brussels, 22 May 2024) . It discusses the importance of a bank’s balance sheet as well as competition and taxation in interpreting the transmission of monetary policy to lending and deposit rates. It also briefly touches upon recent academic insights regarding how ESG impacts on bank lending policies.
