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An investigation how quantitative easing programme, Vickers’ ring-fencing regulation and the ‘Brexit’ announcement impact on UK banking sector
journal contribution
posted on 2023-06-09, 11:53 authored by Malgorzata Sulimierska, Alessandro Attilio Antonio MieleIn this paper, ‘Events study analysis’ is used to analyse the impact of Vickers’ Ring-fencing regulation, Quantitative Easing programme and the United Kingdom’s vote to leave the European Union (‘Brexit’) on the UK banking system. Ten banks have been included in the study and the stock price data for each of them was collected from the 14th January 2011 to the 30th of July 2016. We find that banks affected by Vickers’ regulation did have negative abnormal returns as the policy progressed, indicating that the policy may not be the best way to limit risk in banks. The results also show that Quantitative Easing does affect the banks’ abnormal returns positively and that ‘bigger’ banks benefit more from its implementation. Finally, we discover that the ‘Brexit’ vote did cause negative abnormal returns across all banks, however, it was the smaller ‘unaffected’ banks which suffered the most.
History
Publication status
- Published
File Version
- Published version
Journal
International Journal of Empirical FinanceISSN
2310-3248Publisher
Research Academy of Social SciencesIssue
3Volume
5Page range
155-166Department affiliated with
- Business and Management Publications
Research groups affiliated with
- Business and Finance Research Group Publications
Full text available
- Yes
Peer reviewed?
- Yes
Legacy Posted Date
2018-02-02First Open Access (FOA) Date
2018-02-02First Compliant Deposit (FCD) Date
2018-02-02Usage metrics
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