Topic: Limiting Too-Big-to-Fail & the Rise of Banking Fragility

Speaker: Tianyue Ruan, Assistant Professor of Finance, NUS Business School

Time: 10:00am-11:30am, October 18 (Beijing Time)

Location: 4-101

Abstract:

Since 2018, U.S. regulators have restricted Wells Fargo & Company from growing beyond $1.95 trillion in assets. Constrained by the asset cap, Wells Fargo contracted geographically, and its deposit growth stalled. We show that other banks stepped in to fill the gap. Branches near Wells Fargo branches saw higher deposit growth than other branches of the same banks in the same counties. Banks more exposed to Wells Fargo competition experienced higher growth in uninsured deposits, leading to higher stress during the regional bank crisis of 2023.

Speaker Biography:

Tianyue Ruan is an Assistant Professor in the Department of Finance at the National University of Singapore (NUS) Business School.

Her research explores issues in financial intermediation and systemic risk. Her current work focuses on the impact of financial regulation on the behaviours of traditional and emerging financial intermediaries, and associated implications for financial stability and the real economy.

She received her PhD in Finance from New York University Stern School of Business. As an undergraduate, she studied economics and finance at Peking University, China.