'Risk Appetite and Risk Aggregation: Do banks understand what they are doing?'
Professor Alistair Milne MA (Cambridge), MSc (LSE), PhD (LSE)
Professor of Financial Economics
Bank capital; financial regulation; financial risk management; financial stability; central banking; payments, systems of payments, clearing and settlement; liquidity and lender of last resort; macroeconomic dynamics and monetary transmission
Alistair Milne joined the school in July 2011 as professor of financial economics. He was previously reader in banking and finance at Cass Business School, City University of London and has also held positions at the Bank of England, the University of Surrey, London Business School, HM Treasury and the national statistics office of Malawi.
In recent years his principal research has been on bank balance sheet management and regulation, and its relationship to banking performance, monetary transmission and financial stability; and on the network economics of financial infrastructure, including retail payments and securities and derivatives clearing and settlement. He has also worked on a variety of other issues in financial risk management, liquidity risk, central banking, financial regulation, housing markets, development finance and macroeconomics. He is the author of The Fall of the House of Credit (Cambridge University Press, July 2009) which is a comprehensive single volume account of all different dimensions of the global financial crisis and has been a regular media commentator on the crisis and the response by policy makers. He is also a frequent speaker at policy and industry conferences.
Since 2005 Alistair has been an annual research visitor at the Monetary Policy and Research Department of the Bank of Finland. He has been a consultant to the Houses of Parliament, the Financial Services Authority, the European Commission, and to several private sector institutions and trade bodies.
bank capital; financial regulation; financial risk-management; central banking; payments, clearing and settlement
Selected recent journal publications:
- Livne, Gilad; Garen Markarian and Alistair Milne (2011 forthcoming) , Bankers’ Compensation and Fair Value Accounting, Journal of Corporate Finance
- Jokipii, Terhi and Alistair Milne (2011) ‘Bank capital buffer and risk adjustment decisions’, Journal of Financial Stability, Vol. 7, issue 3, August, pages 165-178
- Milne, Alistair (2011), Limited-liability debt for the Eurozone, CES-ifo Economic Studies, 57(1), March, pages 44-78
- Milne, Alistair and Mario Onorato (2010) “Risk-adjusted measures of value creation in financial institutions” European Financial Management, published online
- Milne, Alistair (2009), “Macroprudential Policy: Is it really so new?” Oxford Review of Economic Policy, 25:4, pp 1-22
- Alistair Milne and Geoffrey Wood (2009) ‘Shattered on the Rock: British Financial Stability from 1866 to 2007’, Journal of Financial Regulation, 10(2) pages 89-127
- Jokipii, Terhi and Alistair Milne (2008) “Cyclical Behaviour of European Bank Capital Buffers”, Journal of Banking and Finance, 30th anniversary volume, 32(8), 1440-1451
- Milne, Alistair (2006) “What’s in it for us? Network externalities and bank payment innovation” Journal of Banking and Finance, 30, pp 1613-1630
- Dimou, Paraskevi; Colin Lawrence and Alistair Milne (2005), “Skewness of Returns, Capital Adequacy, and Mortgage Lending”, Journal of Financial Services Research28:1/2/3 pp135-161
In a short taster lecture for prospective MSc students, Professor Alistair Milne explores the benefits and drawbacks of seeking finance through public equity or private equity.
Professor Alistair Milne on the rewards of teaching Loughborough students and equipping them to understand global financial markets, particularly in light of the mistakes that led to the recent world financial crisis.