You are here

Eric Nowak
SFI Faculty Member
Professor of Finance
  +41 58 666 46 37
  eric.nowak@sfi.ch   http://usi.to/ey9
Eric Nowak is Professor of Finance at the Università della Svizzera italiana and has been an SFI Faculty Member since 2006. Throughout his career, Prof. Nowak has held visiting appointments at leading universities worldwide, including Stanford University, the University of Chicago, and the National University of Singapore, where he is appointed as Visiting Professor in the Risk Management Institute.
Research Interests:
His research areas include corporate governance, family firms, and private equity.
Recent Research:
In a recent paper, Prof. Nowak and his coauthors focus on bank failure in the US in the aftermath of the 2008 crisis and address the questions of whether the commercial banks that ended up being subject to Federal Deposit Insurance Corporation (FDIC) resolution received Capital Purchase Program (CPP) funds and whether the non-allocation of CPP funds made FDIC receivership more likely for viable commercial banks. Results show almost no overlap between CPP-funded and FDIC-resolved commercial banks following the credit crisis, suggesting that the Treasury made a good job in granting public funds to fend off further bankruptcies while avoiding supporting non-viable banks. However, the data also provides strong evidence that Treasury could have prevented a significant number of banks from failing by granting more CPP funding. This result is likely explained by excessive reliance upon capital ratios and a defective assessment of the funding and resolution costs involved. In terms of policy recommendations, the authors suggest that it would be advisable to rescue too many rather than too few banks, as this would reduce resolution costs overall without affecting banks’ risk-taking incentives in a meaningful way.