Online Appendix to "Regulatory Stress Tests and Bank Responses: Heterogeneous Treatment Effect in Dynamic Settings"

Abstract

We investigate how the regulatory stress-test framework in the European Union affects banks' investment decisions and portfolio choices. Using the causal inference and event-study methods, we document a substantial impact of EU-wide stress tests in 2011, 2014, and 2016 on the banks' portfolio strategies.

Keywords

• Regulation
• European Union
• banks
• stress-test framework