The ECB’s Targeted Review of Internal Models (TRIM) limited banks’ dis- cretion in the design of their internal models. We show that TRIM led banks to change their credit allocation in favor of young firms. This has happened since IRB models became stricter after TRIM, making banks more selective in screening borrowers. This enhanced the quality of the lending portfolio, and banks could reduce the need for Collateral, allowing young firms, which generally cannot pledge Collateral, to have greater access to bank credit.
Franco Fiordelisi is a Professor of Banking and Finance at Essex Business School of the University of Essex, where he is also the head of the finance group and director of the Financial Technology Centre EsseX (FinteX). He is also the President of the Financial Intermediation Network of European Studies (FINEST) and a part-time professor of Finance at the University of Rome III, Italy.
Franco has received many honors and awards for his scientific outputs and his university teaching skills. In international rankings, IDEAS/RePEc ranks his research in the top 10% in the Fields of "Banking", and "Corporate Finance".
His research revolves around bank management, financial risk management, and Fintech. His work has been published in international academic journals (such as the Journal of Financial and Quantitative Analysis, Review of Finance, Journal of Financial Intermediation, and Journal of Corporate Finance) and presented to primary international financial conferences (e.g., American Finance Association, American Economic Association, European Finance Association, Financial Intermediation Research Society, and Federal Deposit Insurance Corporation).
Franco was Fulbright Senior Scholarship at the Olin Business School, Washington University in St. Louis, US. He has been (and in some cases still is) a visiting researcher and consultant for important institutions, such as the European Central Bank, World Bank, and Federal Reserve of New York.
The seminar will be held in English.
Major information: Giulia Baschieri (giulia.baschieri@unibo.it).