OxTalks will soon move to the new Halo platform and will become 'Oxford Events.' There will be a need for an OxTalks freeze. This was previously planned for Friday 14th November – a new date will be shared as soon as it is available (full details will be available on the Staff Gateway).
In the meantime, the OxTalks site will remain active and events will continue to be published.
If staff have any questions about the Oxford Events launch, please contact halo@digital.ox.ac.uk
An important motivation for financial regulation is the premise that the externality imposed by bank failures on the financial system is not reflected in market pricing. In this study we empirically assess this premise by studying whether systemic contagion losses are reflected in bilateral prices charged on interbank markets. We study this question within a simultaneous equation model in order to account for the endogeneity induced by the simultaneous determination of interbank lending and deposit rates. Our empirical inference suggests that systemic externalities are not internalized on interbank markets, highlighting the existence of a market failure with respect to systemic risk.
