Post image for 2015 Distinguished Faculty Research Lecture

2015 Distinguished Faculty Research Lecture

April 13, 2015

The fallout from the financial crisis that began in 2007 is still being sorted out in the United States. In Europe it is not yet clear whether the crisis is over.

The impact of the recent financial crisis on the health of banking systems in the United States and Europe, and how the crisis led to a severe “credit crunch,” are the topics of the 2015 Distinguished Faculty Research Lecture. “Banks, Financial Crises, and Firm Access to Credit” will be presented by Gregory F. Udell, the Chase Chair of Banking and Finance at IU’s Kelley School of Business in Bloomington.

The lecture takes place from 3 to 4:30 p.m. Friday, April 24, in the Kelley School’s Hodge Hall, Room 1006.

Udell’s research focuses on banking, bank regulation and credit. He has published extensively on these topics in economics and finance journals and has written two textbooks on banking. Udell has also been a visiting scholar or consultant to central banks throughout the world including the Board of Governors of the Federal Reserve System, the Bank of Japan, the Bank of Italy, the European Central Bank, the Federal Reserve Banks of Chicago and San Francisco, the International Finance Corp., the Peoples Bank of China, the Riksbank (the Swedish central bank), the State Bank of Vietnam and the World Bank.

“The recent financial crisis was associated with an acute contraction in the availability of bank credit — a phenomenon known as a ‘credit crunch,’” Udell said. “The financial crisis, fueled by massive bank losses in subprime residential mortgages, started in the U.S. and then propagated to Europe. Policymakers have struggled to implement programs and strategies to restore the plumbing in the European and U.S. banking systems and to mitigate the effects of the credit crunch.”

In his talk, Udell will consider how the credit crunch affected business access to finance, particularly by small and mid-sized enterprises, and how some structural and regulatory changes in Europe and the United States likely affected the severity of the credit crunch. He’ll also present new research on some key policy tools that are being considered to inhibit the build-up of risk during the next boom.

The Distinguished Faculty Research Lecture series is co-sponsored by the Office of the Vice Provost for Research and the Office of the Provost at IU Bloomington. Begun in 1980, this annual event recognizes the research achievements of an IU Bloomington faculty member and is accompanied by a $5,000 award to support the distinguished lecturer’s continuing research. Past awardees include Elinor Ostrom, David R. Williams, Meredith West and Richard DiMarchi.