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Jean-Charles Rochet
SFI Senior Chair; SFI Head of Research
Professor of Banking

Jean-Charles Rochet is Professor of Finance at the University of Geneva. He has held an SFI Senior Chair since 2010 and has been SFI Head of Research since 2015. Before joining the faculty in Geneva, Prof. Rochet held a chair at the Toulouse School of Economics. Prof. Rochet is the author of Why Are There so Many Banking Crises?, a book that sheds light on the causes of recent and past banking crises.

Research Interests:
His research interests lie in banking crises and regulation.
Recent Research:
Prof. Rochet and his coauthor have recently developed a theory of “risky utilities”, which contributes to the growing literature that seeks to better assess the risks at stake when private firms manage infrastructure for a public-utility service. Because continuity of service is essential to society, “risky utilities” cannot be liquidated and regulation needs to be introduced. The role of regulation is to avoid seeing shareholders diverting earnings to their benefit or having them engage in excessively risky activities that provide them with short-run earnings and society with long-run catastrophic losses. The optimal regulatory contract minimizes social cost by steering firms away from risky activities and is implemented with a capital adequacy requirement and a resolution mechanism when the requirement is breached.