Banking and financial markets

Our banking and financial markets research examines the functioning of financial markets and the institutions that operate in those markets.

Using a range of approaches – including economics, law, psychology and machine learning– we're exploring topics ranging from the stability of the banking system and the legal regulation of banks, to the trading behaviour of professional and amateur traders.

Recent financial crises have demonstrated the need to better understand the pricing of complex derivatives and the interdependence of those markets – and our research is also examining these markets and their interdependence, furthering our understanding of the causes of the crisis and the progress in ensuring the financial system is more secure.

The crisis also demonstrated the importance of regulation, and we employ an interdisciplinary approach, encompassing academics from a range of disciplines.

Our research is regularly published in leading journals within the field, including the Journal of Banking and Finance; Journal of International Financial Markets, Institutions and Money; Journal of International Banking Law & Regulation; and European Journal of Finance.

Our research focuses on the following topics

Dynamic interactions between and within the economy and financial markets
Bank supervision and regulation
High frequency and algorithmic trading
Information in financial markets
Sustainable finance and Islamic finance
Risk, volatility and liquidity
Financialisation of commodity markets
Market manipulation and surveillance

Methods

Our research makes use of quantitative research methods, and econometrics methods including time series and panel data. We occasionally use of large datasets – sometimes high frequency – and from these, we estimate structural models to test for causal relationships. We also employ economic theory to build theoretical models from first principles.

Our law-related research can result from qualitative works, involving review and analysis of financial regulation, case-law and legal literatures. It also employs empirical legal methods that typically apply to economics, psychology and sociology, to explore the interplay between financial regulation and governance with relevant stakeholders and the wider society.

Publication highlights include

Chatziantoniou, Ioannis ; Filippidis, Michail ; Filis, George et al. / A closer look into the global determinants of oil price volatility. In: Energy Economics. 2021 ; Vol. 95.
Hasan, Mohammad S. ; Gausden, Robert ; Kume, Ortenca. / An examination of higher-moment contagion during the South Sea Bubble. In: Applied Economics Letters. 2021.
Stenfors, Alexis ; Doraghi, Mehrdaad ; Soviany, Cristina et al. / Cross-market spoofing. In: Journal of International Financial Markets, Institutions and Money. 2023 ; Vol. 83.
Huang, Xing ; Wang, Xiaodong ; Han, Liang et al. / Does sound lending infrastructure foster better financial reporting quality of SMEs?. In: The European Journal of Finance. 2022.
Stenfors, Alexis ; Chatziantoniou, Ioannis ; Gabauer, David. / Independent policy, dependent outcomes: a game of cross-country dominoes across European yield curves. In: Journal of International Financial Markets, Institutions and Money. 2022 ; Vol. 81.
Alfaihani, Sara Mohamed Abdulwahab ; Badunenko, Oleg ; Jaffry, Shabbar. / Market size and market structure in banking. In: Journal of International Financial Markets, Institutions and Money. 2021; Vol. 72.
Heinlein, Reinhold ; Mahadeo, Scott Mark Romeo. / Oil and US stock market shocks: implications for Canadian equities. In: Canadian Journal of Economics. 2023 ; Vol. 56, No. 1. pp. 247-287.
Liu, Jie ; Wu, Chonglin ; Yuan, Lin et al. / Opening price manipulation and its value influences. In: International Review of Financial Analysis. 2022 ; Vol. 83.
Wang, Xiaodong ; Han, Liang ; Huang, Xing et al. / The financial and operational impacts of European SMEs' use of trade credit as a substitute for bank credit. In: The European Journal of Finance. 2021.
Magkonis, Georgios ; Oh, Ey ; Bakas, Dimitrios. / What drives volatility in Bitcoin market?. In: Finance Research Letters. 2022 ; Vol. 50.

Discover our areas of expertise

Banking and financial markets is one of 3 areas of expertise within our Finance research – explore the others below.

Corporate finance

We're working to improve our understanding of asset pricing in capital markets, especially in relation to the performance of Initial Public Offerings.

Person standing in front of screens showing financial data

Fintech and microfinance

Join us in our work in helping individuals, firms, and governments learn to use FinTech to meet their needs. Explore our fintech and microfinance research.