Discussant: Franco Fiordelisi.

Abstract: Banks rely heavily on their internal credit risk models to assess the risk of loans. However, the reliability and consistency of these models have become questionable, particularly following the first euro-wide stress test exercises. In 2017, the European Central Bank (ECB) implemented a review of these models to increase their standardization. This intervention made internal models significantly more precise, allowing banks to rely less on collateral. This, in turn, favored a reallocation of lending toward young firms and firms in industries with limited ability to provide collateral.

Chair: Gianmarco Ruzzier.

Contact: Gianmarco Ruzzier. 

Location: Meeting room DG Economics.

Timetable: 2025.11.18 (12:00-13:30).