25 Years IWH

Thomas Krause

Thomas Krause
Current Position

since 3/14

Economist in the Department of Financial Markets

Halle Institute for Economic Research (IWH) – Member of the Leibniz Association

Research Interests

  • financial stability and banking regulation
  • political economy of banking
  • household finance and the housing market

Thomas Krause joined the IWH as scholarship recipient in November 2013 and works for the Department of Financial Markets since March 2014. 

His research focuses on financial stability, banking regulation and the interaction between financial frictions and aggregate economic activity. From 2007 to 2013, Thomas Krause studied Economics and Management Science (B.Sc.) as well as Economics (M.Sc.) at Leipzig University and Financial Economics at Ohio University.

Your contact

Thomas Krause
Thomas Krause
Mitglied - Department Financial Markets
Send Message +49 345 7753-839 Personal page

Publications

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Complexity and Bank Risk During the Financial Crisis

Thomas Krause Talina Sondershaus Lena Tonzer

in: Economics Letters , 2017

Abstract

We construct a novel dataset to measure banks’ complexity and relate it to banks’ riskiness. The sample covers stock listed Euro area banks from 2007 to 2014. Bank stability is significantly affected by complexity, whereas the direction of the effect differs across complexity measures.

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Working Papers

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Bank-specific Shocks and House Price Growth in the U.S.

F. Bremus Thomas Krause Felix Noth

in: IWH Discussion Papers , No. 3, 2017

Abstract

This paper investigates the link between mortgage supply shocks at the banklevel and regional house price growth in the U.S. using micro-level data on mortgage markets from the Home Mortgage Disclosure Act for the 1990-2014 period. Our results suggest that bank-specific mortgage supply shocks indeed affect house price growth at the regional level. The larger the idiosyncratic shocks to newly issued mortgages, the stronger is house price growth. We show that the positive link between idiosyncratic mortgage shocks and regional house price growth is very robust and economically meaningful, however not very persistent since it fades out after two years.

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Drivers of systemic risk: Do national and European perspectives differ?

Claudia M. Buch Thomas Krause Lena Tonzer

in: Deutsche Bundesbank Discussion Papers , No. 9, 2017

Abstract

In Europe, the financial stability mandate generally rests at the national level. But there is an important exception. Since the establishment of the Banking Union in 2014, the European Central Bank (ECB) can impose stricter regulations than the national regulator. The precondition is that the ECB identifies systemic risks which are not adequately addressed by the macroprudential regulator at the national level. In this paper, we ask whether the drivers of systemic risk differ when applying a national versus a European perspective. We use market data for 80 listed euro-area banks to measure each bank’s contribution to systemic risk (SRISK) at the national and the euro-area level. Our research delivers three main findings. First, on average, systemic risk increased during the financial crisis. The difference between systemic risk at the national and the euro-area level is not very large, but there is considerable heterogeneity across countries and banks. Second, an exploration of the drivers of systemic risk shows that a bank’s contribution to systemic risk is positively related to its size and profitability. It decreases in a bank’s share of loans to total assets. Third, the qualitative determinants of systemic risk are similar at the national and euro-area level, whereas the quantitative importance of some determinants differs.

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The Role of Complexity for Bank Risk during the Financial Crisis: Evidence from a Novel Dataset

Thomas Krause Talina Sondershaus Lena Tonzer

in: IWH Discussion Papers , No. 17, 2016

Abstract

We construct a novel dataset to measure banks’ complexity and relate it to banks’ riskiness. The sample covers stock listed Euro area banks from 2007 to 2014. Bank stability is significantly affected by complexity, whereas the direction of the effect differs across complexity measures. This heterogeneity advises against the use of a single complexity measure when evaluating the implications of bank complexity.

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