25 Years IWH

Professor Michael Koetter, PhD

Professor Michael Koetter, PhD
Current Position

seit 9/16

Head of the Department of Financial Markets

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

seit 9/16

Professor of Financial Economics

Otto von Guericke University Magdeburg

Research Interests

  • corporate investment allocation and aggregate growth
  • financial intermediation
  • financial stability and banking regulation
  • risk taking and competition
  • real implications of monetary and economic policy

Michael Koetter is professor of Financial Economics at the University of Magdeburg and head of the Department of Financial Markets at IWH since September 2016. The department is host to the annual FIN-FIRE conference on challenges to financial stability.

Contemporary research interests cover broadly three main areas. First, the role of micro- and macro-prudential regulation for the stability of financial systems. Second, the role of financial intermediaries to re-allocate productive resources amongst firms, sectors, and countries. Third, the political economy of financial and economic systems with regards to market structure and risk-resilience.

Michael Koetter obtained his PhD in economics from Utrecht University and his MSc in international economics from the University of Maastricht. Before joining IWH, he was a professor at Frankfurt School of Finance & Management (2012-2016) and the University of Groningen (2006-2012). He is currently also member of the scientific advisory board of the Research Data and Service Center of Deutsche Bundesbank, an editor at the Economics of Transition, and the Vice President of the IBEFA association.

Your contact

Professor Michael Koetter, PhD
Professor Michael Koetter, PhD
Leiter - Department Financial Markets
Send Message +49 345 7753-727

Publications

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Crises and Rescues: Liquidity Transmission Through Global Banks

Michael Koetter Claudia M. Buch C. T. Koch

in: International Journal of Central Banking , forthcoming

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Credit Risk Connectivity in the Financial Industry and Stabilization Effects of Governent Bailouts

Jakob Bosma Michael Koetter Michael Wedow

in: Journal of Business & Economic Statistics , forthcoming

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Big Fish in Small Banking Ponds? Cost Advantages and Foreign Affiliate Presences

Michael Koetter Rients Galema

in: Journal of International Money and Finance , forthcoming

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Working Papers

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Delay Determinants of European Banking Union Implementation

Michael Koetter Thomas Krause Lena Tonzer

in: IWH Discussion Papers , No. 24, 2017

Abstract

To safeguard financial stability and harmonise regulation, the European Commission substantially reformed banking supervision, resolution, and deposit insurance via EU directives. But most countries delay the transposition of these directives. We ask if transposition delays result from strategic considerations of governments conditional on the state of their financial, regulatory, and political systems? Supervisors might try to protect national banking systems and local politicians maybe reluctant to surrender national sovereignty to deal with failed banks. Alternatively, intricate financial regulation might require more implementation time in large and complex financial and political systems. We therefore collect data on the transposition delays of the three Banking Union directives and investigate observed delay variation across member states. Our correlation analyses suggest that existing regulatory and institutional frameworks, rather than banking market structure or political factors, matter for transposition delays.

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Do We Want These Two to Tango? On Zombie Firms and Stressed Banks in Europe

Manuela Storz Michael Koetter Ralph Setzer Andreas Westphal

in: ECB Working Paper , 2017

Abstract

We show that the speed and type of corporate deleveraging depends on the interaction between corporate and financial sector health. Based on granular bank-firm data pertaining to small and medium-sized enterprises (SME) from five stressed and two non-stressed euro area economies, we show that “zombie” firms generally continued to lever up during the 2010–2014 period. Whereas relationships with stressed banks reduce SME leverage on average, we also show that zombie firms that are tied to weak banks in euro area periphery countries increase their indebtedness even further. Sustainable economic recovery therefore requires both: deleveraging of banks and firms.

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Do We Want These Two to Tango? On Zombie Firms and Stressed Banks in Europe

Manuela Storz Michael Koetter Ralph Setzer Andreas Westphal

in: IWH Discussion Papers , No. 13, 2017

Abstract

We show that the speed and type of corporate deleveraging depends on the interaction between corporate and financial sector health. Based on granular bank-firm data pertaining to small and medium-sized enterprises (SME) from five stressed and two non-stressed euro area economies, we show that “zombie” firms generally continued to lever up during the 2010–2014 period. Whereas relationships with stressed banks reduce SME leverage on average, we also show that zombie firms that are tied to weak banks in euro area periphery countries increase their indebtedness even further. Sustainable economic recovery therefore requires both: deleveraging of banks and firms.

read publication
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