Date: May 21, 2026
Time: 10h00 - 11h00 (EET)
Format:  Hibrid:

• Fizic: Lounge Room, FEAA, Timișoara
• Online: via Google Meet (link)

Invited Speaker: Florian HORKY (Zeppelin University, Germany & Slovak National Bank, Slovakia)
Presentation Title: Structural interest rate adjustments after natural disasters 

Co-authors: (1) Steven ONGENA (University of Zurich); (2) Florentina PARASCHIV (Technical University of Denmark (DTU) Copenhagen)

Abstract: Are banks prepared for satisfying the demand for loans after natural disasters? Regional shocks caused by natural disasters are becoming more frequent and severe, causing significant and growing economic losses. When a disaster hits firms’ financial constraints become especially relevant. Firms may require external finance precisely when internal liquidity is depleted and investment needs for repair, replacement, and adaptation increase. Thus, if catastrophes exceed a certain threshold, the role of bank lending becomes crucial for firm level and economic recovery. This project examines how banks reprice or restructure credit to corporates after a natural disaster shock has occurred. This is highly relevant as immediately after disasters valuation uncertainty, delayed information on borrower impairment, and collateral damage can alter pricing governance. The identification of patterns in banks loan pricing strategies around natura disasters is highly relevant to banks, affected companies and (regional) governments and policy makers. For banks, our research provides insights into structural shifts, that might be used for ex ante pricing governance regulations. For affected companies our results can help optimizing their recovery financing strategy. Ultimately, for regional governments our results can help for optimal timing and design of recovery aid programs from companies.