Swiss Finance Institute @ EPFL
The Swiss Finance Institute @ EPFL has been created to foster research in finance and to develop a strong offering of programs in finance and financial engineering at the Ecole Polytechnique Fédérale de Lausanne. The focus is on the areas within finance that have a natural interaction with mathematics, statistics, engineering, and science, namely, mathematical finance, financial econometrics, and entrepreneurial finance.
The Swiss Finance Institute @ EPFL participates in two teaching programs, The Master in Financial Engineering at EPFL, which is a highly selective 2-year master program, and The PhD in Finance, which is organized jointly with the Swiss Finance Institute and the Universities of Geneva and Lausanne.
The Swiss Finance Institute @ EPFL benefits from the institutional support of the Swiss Finance Institute, a private foundation created in 2006 by Switzerland’s banking and finance community in cooperation with leading Swiss universities, and from Swissquote, who endowed the Swissquote Chair in Quantitative Finance.
By: Alexandre ROBERT – Quant Developer - Alumnus MFE
The short-termism of lenders amplifies boom-bust credit cycles, leading in turn to real costs for the aggregate economy. During the U.S. housing credit boom, publicly-traded banks increased mortgage lending activity and relaxed standards much more than privately-held banks, and more so if they were run by short-term oriented CEOs. In the ensuing bust, counties with greater exposure to short-term oriented public banks experienced more severe downturns across a variety of outcomes, including economically large drops in aggregate employment, durable consumption, and retail sales. The findings hold for text-based measures of short-term focus and are robust to using an identification strategy that instruments for county mortgage lending with shocks that areplausibly unrelated to local economic conditions. In all, we provide micro-founded evidence that the ownership structure and short-term focus of depository institutions matter for the real economy.
By: Antonio FALATO, Federal Reserve Bank