Professor Dr Melina Ludolph

Professor Dr Melina Ludolph
Current Position

since 9/21

Economist in the Department of Laws, Regulations and Factor Markets

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

since 9/21

Assistant Professor

Otto von Guericke University Magdeburg

Research Interests

  • banking regulation
  • financial stability
  • financial crises
  • applied econometrics

Melina Ludolph joined the institute in September 2021. She is Assistant Professor at Otto von Guericke University Magdeburg. Her research focuses on banking regulation, financial stability, financial crises, and applied econometrics.

Melina Ludolph received her master's degree and her PhD from Humboldt-Universität zu Berlin.

Your contact

Professor Dr Melina Ludolph
Professor Dr Melina Ludolph
Mitglied - Department Laws, Regulations and Factor Markets
Send Message +49 345 7753-773

Publications

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The Nexus between Loan Portfolio Size and Volatility: Does Bank Capital Regulation Matter?

Franziska Bremus Melina Ludolph

in: Journal of Banking and Finance, June 2021

Abstract

This paper analyzes the effects of bank capital regulation on the link between bank size and volatility. Using bank-level data for 27 advanced economies over the 2000–2014 period, we estimate a power law that relates the volume of a bank’s loan portfolio to the volatility of loan growth. Our analysis reveals, first, that more stringent capital regulation weakens the size-volatility nexus. Hence, in countries with more stringent capital regulation, large banks show, ceteris paribus, lower loan portfolio volatility. Second, the effect of tighter capital requirements on the size-volatility nexus becomes stronger for the upper tail of the bank size distribution. This is in line with capitalization decreasing with bank size, such that larger banks tend to be more affected by increasing capital requirements. Third, in countries with higher sectoral capital buffers, the size-volatility nexus is weaker.

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