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COVID-19 and policy responses: Early evidence in banks and FinTech stocks
The Australian government and Reserve Bank of Australia responded to challenges posed by the COVID-19 pandemic with a number of rapid interventions within a short period of time in early to mid-2020. We examine the impact of news relating to COVID-19, monetary policy interventions, containment measu...
Autores principales: | , |
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Formato: | Online Artículo Texto |
Lenguaje: | English |
Publicado: |
Elsevier B.V.
2022
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Materias: | |
Acceso en línea: | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9279165/ http://dx.doi.org/10.1016/j.pacfin.2022.101815 |
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author | Kakhkharov, Jakhongir Bianchi, Robert J. |
author_facet | Kakhkharov, Jakhongir Bianchi, Robert J. |
author_sort | Kakhkharov, Jakhongir |
collection | PubMed |
description | The Australian government and Reserve Bank of Australia responded to challenges posed by the COVID-19 pandemic with a number of rapid interventions within a short period of time in early to mid-2020. We examine the impact of news relating to COVID-19, monetary policy interventions, containment measures, and the unwinding of restrictions on Australian bank and FinTech stock prices. The global pandemic was caused by factors outside the banking sector and capital markets, therefore, the policy responses from this unique crisis provides us with new knowledge. Bank and FinTech stock prices were more sensitive to the government's macroeconomic announcements and the unwinding of containment measures than to monetary policy interventions in this unique environment. The response of banks and FinTechs to COVID-19 related macroeconomic decisions is consistent with the response of bank stock prices in previous financial crises. This finding suggests a stronger emphasis on macroeconomic announcements is required as a stabilizing policy tool when managing future crises from outside the banking and capital market sectors. |
format | Online Article Text |
id | pubmed-9279165 |
institution | National Center for Biotechnology Information |
language | English |
publishDate | 2022 |
publisher | Elsevier B.V. |
record_format | MEDLINE/PubMed |
spelling | pubmed-92791652022-07-14 COVID-19 and policy responses: Early evidence in banks and FinTech stocks Kakhkharov, Jakhongir Bianchi, Robert J. Pacific-Basin Finance Journal Article The Australian government and Reserve Bank of Australia responded to challenges posed by the COVID-19 pandemic with a number of rapid interventions within a short period of time in early to mid-2020. We examine the impact of news relating to COVID-19, monetary policy interventions, containment measures, and the unwinding of restrictions on Australian bank and FinTech stock prices. The global pandemic was caused by factors outside the banking sector and capital markets, therefore, the policy responses from this unique crisis provides us with new knowledge. Bank and FinTech stock prices were more sensitive to the government's macroeconomic announcements and the unwinding of containment measures than to monetary policy interventions in this unique environment. The response of banks and FinTechs to COVID-19 related macroeconomic decisions is consistent with the response of bank stock prices in previous financial crises. This finding suggests a stronger emphasis on macroeconomic announcements is required as a stabilizing policy tool when managing future crises from outside the banking and capital market sectors. Elsevier B.V. 2022-09 2022-07-14 /pmc/articles/PMC9279165/ http://dx.doi.org/10.1016/j.pacfin.2022.101815 Text en © 2022 Elsevier B.V. All rights reserved. Since January 2020 Elsevier has created a COVID-19 resource centre with free information in English and Mandarin on the novel coronavirus COVID-19. The COVID-19 resource centre is hosted on Elsevier Connect, the company's public news and information website. Elsevier hereby grants permission to make all its COVID-19-related research that is available on the COVID-19 resource centre - including this research content - immediately available in PubMed Central and other publicly funded repositories, such as the WHO COVID database with rights for unrestricted research re-use and analyses in any form or by any means with acknowledgement of the original source. These permissions are granted for free by Elsevier for as long as the COVID-19 resource centre remains active. |
spellingShingle | Article Kakhkharov, Jakhongir Bianchi, Robert J. COVID-19 and policy responses: Early evidence in banks and FinTech stocks |
title | COVID-19 and policy responses: Early evidence in banks and FinTech stocks |
title_full | COVID-19 and policy responses: Early evidence in banks and FinTech stocks |
title_fullStr | COVID-19 and policy responses: Early evidence in banks and FinTech stocks |
title_full_unstemmed | COVID-19 and policy responses: Early evidence in banks and FinTech stocks |
title_short | COVID-19 and policy responses: Early evidence in banks and FinTech stocks |
title_sort | covid-19 and policy responses: early evidence in banks and fintech stocks |
topic | Article |
url | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9279165/ http://dx.doi.org/10.1016/j.pacfin.2022.101815 |
work_keys_str_mv | AT kakhkharovjakhongir covid19andpolicyresponsesearlyevidenceinbanksandfintechstocks AT bianchirobertj covid19andpolicyresponsesearlyevidenceinbanksandfintechstocks |