VGSF - WU Vienna - LC

Vesa Pursiainen, University of St. Gallen

online via Microsoft Teams 11:30 - 12:30

Organizer WU Vienna

The Fin­ance Brown Bag Sem­inar is held by the In­sti­tute for Fin­ance, Bank­ing and In­sur­ance (WU Vi­enna) and the Vi­enna Gradu­ate School of Fin­ance (VGSF). It serves as a present­a­tion plat­form for PhD stu­dents, fac­ulty mem­bers, and vis­it­ors. An over­view of BBS on the web­site of the In­sti­tute for Fin­ance, Bank­ing and In­sur­ance.

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Novem­ber 24th, 2020, 11:30 am - 12:30 pm
You can par­ti­cip­ate in the sem­inar on­line via Mi­crosoft Teams
The meet­ing will open at 11:15 am for you to dial in. To join the stream please fol­low this link.
In case of tech­nical prob­lems please con­tact: clemens.wag­n­er­1@wu.ac.at

Vesa Pur­si­ainen, Uni­versity of St. Gal­len

Title: "Stress Test­ing Banks' Di­gital Cap­ab­il­it­ies: Evid­ence from the COV­ID-19 Pan­demic"

Ab­stract

We study the re­la­tion­ship between banks' IT cap­ab­il­it­ies and their ab­il­ity to serve cus­tomers dur­ing the de­mand shock for di­gital bank­ing ser­vices gen­er­ated by the COV­ID-19 pan­demic. Amid mobil­ity restric­tions im­posed dur­ing the out­break, banks with bet­ter IT cap­ab­il­it­ies ex­hibit bet­ter share price per­form­ance, lar­ger re­duc­tion in phys­ical branch vis­its, lar­ger in­creases in web­site traf­fic and shorter re­ac­tion times to men­tion COV­ID-19 on their web­sites. Banks with bet­ter IT ori­gin­ate more PPP loans, espe­cially in seg­ments more de­pend­ent on hu­man in­ter­ac­tion as well as in areas with more severe COV­ID-19 out­breaks, higher levels of in­ter­net use, and higher bank com­pet­i­tion. They also at­tract more de­pos­its dur­ing the pan­demic.



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