by Sebastian Schich | Jan 10, 2025 | Anchor assets, Crypto assets, fiat currencies, Safe haven asset, Stablecoins
Stablecoins are not robust anchors. In volatile financial markets, safety and stability are desirable. Hence, investors seeking refuge from economic uncertainties often gravitate towards safe-haven assets. Safe haven assets maintain or increase their value during...
by Sebastian Schich | Apr 13, 2024 | AI, Artificial intelligence, ChatGPT, GenAI, Google job search, Natural language models
Embracing individual morality in generative artificial intelligence The release of ChatGPT by OpenAI in late 2022 may well have been a tipping point for artificial intelligence. Since then, generative artificial intelligence (GenAI) models have moved beyond generating...
by Sebastian Schich | Nov 16, 2023 | Uncategorized
Yoann Ximenes at Paris Photo Days Photographers have made efforts to visualise sound waves for some time now. A recent notable effort is “Matières d’Écho,” an exhibition that showcases the work of plastic artist Yoann Ximenes. The exhibition runs...
by Sebastian Schich | Sep 14, 2023 | bank levy, Ending too-big-to-fail, financial safety net, financial sector guarantees, financial support for SMEs, implicit guarantees, TBTF, too-big-to-fail, why banks are special
Banking sector extraordinary privileges Banks benefit from an extraordinary privilege: in times of impending systemic financial crises, governments act as guarantors of last resort for banks’ financial obligations. This privilege is not paid, at least not...
by Sebastian Schich | Jul 20, 2023 | financial safety net, financial sector guarantees, financial support for SMEs, implicit guarantees, TBTF, too-big-to-fail
Financial sector guarantees are a key public policy tool All financial claims are risky. Against this background, governments have traditionally provided support for guarantees of financial claims, provided they of public policy interest. This choice is based on the...
by Sebastian Schich | Jul 19, 2023 | AI, Artificial intelligence, ChatGPT, Google job search
The ChatGPT announcement triggered searches for jobs in functions exploiting artificial intelligence (AI). While it also heighted job security concerns, Google job search trends suggest that people, rather than sitting idle, react by exploring associated new...
by Sebastian Schich | Jun 21, 2023 | bank "specialness", financial safety net, financial sector guarantee, Fintech, why are banks special, why banks are special
Fintech developments challenge the business model of incumbent financial market players but are they making banks less “special”? The short answer is no. Banks manage two sets of cash flows – deposits and loans – and provide two key services – liquidity provision and...
by Sebastian Schich | Jun 2, 2023 | European venture capital markets, financial support for SMEs, venture debt
Do public venture loans help overcome the diagnosed financing gap for SMEs in Europe and help them to grow? The preferred policy tool to achieve more desirable credit allocations consists of financial sector guarantees, e.g. for bank lending or securitisations of...
by Sebastian Schich | Jul 20, 2022 | Ending too-big-to-fail, financial safety net, implicit guarantees, TBTF, too-big-to-fail
Are changes in regulation and resolution regimes sufficient to reduce the value of implicit bank debt guarantees? Or are actual losses for bank creditors needed? Banks continue to benefit from implicit guarantees (Schich, 2018). Market participants’ expectations that...
