Prudence at a price? Expected regulatory stigma and sectoral credit reallocation under an NPL ceiling

Financing Corporate Acquisitions: RBI’s Framework and the Case for Linked Reforms

The Reserve Bank of India’s amendment to the Commercial Banks- Capital Market Exposure Directions, 2025, effective 1 July 2026, formally permits Indian commercial banks to finance corporate acquisitions. This marks a significant departure from decades of regulatory restrictions. While the Directions establish a coheren...

Incredulous creditors: ESG momentum, credibility barriers, and state-contingent pricing in corporate bonds

This paper investigates the pricing of ESG momentum in corporate bond markets, identifying a credibility barrier that conditions whether sustainability improvements are rewarded by investors. Analysing a decade-long panel of 3,380 unique EUR-denominated bonds, we document that ESG momentum exhibits state-contingent eff...

WORKING PAPER CURSE AND BLESSING: THE EFFECT OF THE DIVIDEND BAN ON EURO AREA BANK VALUATIONS AND SYNDICATED LENDING

Virtual assets in non-bank financial institutions: A conceptual prudential compatibility index

Type of the article: Theoretical ArticleAbstractVirtual assets are integrated into financial markets, but legal recognition and tradability do not determine whether an instrument can support regulated liabilities in non-bank financial institutions (NBFIs). This theoretical study develops the Conceptual Prudential Compa...

Regulation or rate cut? Pricing India's gold-loan directions

The Reserve Bank of India issued draft directions regarding lending against gold collateral on 9 April 2025. It issued softened, finalised directions in the opposite direction on 6 June 2025, a decision made on two separate monetary policy announcement days, both followed by rate cuts. Such an event study does not addr...

The Price of Permission: Classification Uncertainty in Constrained Capital Markets

Shariah-compliant equity screening provides a transparent setting in which institutional rules determine who may own a stock. A binary label identifies current eligibility but not whether the feasible investor base is fragmented across standards or close to changing. We define this instability as classification uncerta...