Javier Suarez

Professor of Finance

CEMFI - Casado del Alisal 5 - 28014 Madrid - Spain
Phone: +34 914290551 - Fax: +34 914291056 - E-mail:
suarez@cemfi.es  CV in PDF

Doctoral studies
Ph.D. in Economics, Universidad Carlos III de Madrid, 1991-1994.

Current positions
Full Professor at CEMFI.
Research Fellow of the Center for Economic Policy Research (CEPR). 
Research Associate of the European Corporate Governance Institute (ECGI).

Member of the Advisory Scientific Committee (ASC) of the European Systemic Risk Board (ESRB).


Previous positions
Postdoctoral fellow, Harvard University, 1994.
Lecturer in Economics at the London School of Economics (LSE), 1994-1996.
Member of the Financial Markets Group of the LSE, 1994-1996.
Research Affiliate of the CEPR, 1996-2001.
Assistant Professor at CEMFI, 1996-2001.
Associate Professor at CEMFI, 2001-2004.

Associate editor of the Review of Finance, 2003-2009.

Swiss Finance Institute Visiting Professor at the University of Zurich, February-April 2011.

Visiting Scholar at the Federal Reserve Bank of New York, September-November 2011.

Associate editor of the Journal of the European Economic Association, 2009-2012.

Academic advisor of the Macro-prudential Research Network (MaRs) of the ESCB, 2013-2014.

Chair of the ESRB Task Force Financial Stability Implications of IFRS 9, 2016-2017.

Vice-Chair (2015-2018; 2019-2020, 2022-2023) and Chair (2018-2019; 2020-2021) of the ASC of the ESRB.

Corporate Finance, Banking.

Current research
Corporate finance, banking theory, banking regulation, financial crises, venture capital.

Selected research papers (highlighted papers can be downloaded in pdf format)

A. Published or accepted for publication in refereed journals (reverse chronological order)

·       "Bank restructuring under asymmetric information: The role of bad loan sales" (with A. Segura), Journal of Financial Intermediation, 56 (2023), 101058. [Revised version of CEPR DP 13718, April 2019.]

·       "Capital forbearance in the bank recovery and resolution game" (with N. Martynova and E. Perotti), Journal of Financial Economics, 146 (2022), 884-904. [Revised version of CEPR DP 13617, March 2019.]

·       "Growth-at-risk and macroprudential policy design", Journal of Financial Stability, 60 (2022), 101008. (Revised version of ESRB Occasional Paper No. 19, September 2021.)

·       "Bank capital in the short and in the long run" (with C. Mendicino, K. Nikolov and D. Supera), Journal of Monetary Economics, 115 (2020), 64-79. [Available online, June 2019].

·       "Liquidity standards and the value of an informed lender of last resort" (with J. Santos), Journal of Financial Economics, 132 (2019), 351-368. [Online Appendix for January 2018 version]

·       "Optimal dynamic capital requirements" (with C. Mendicino, K. Nikolov and D. Supera), Journal of Money, Credit, and Banking, 50 (2018), 1271-1297. [Online Appendix for October 2017 version.]

·       "How excessive is banks’ maturity transformation?" (with A. Segura), Review of Financial Studies, 30 (2017), 3538-3580. (Based on an old paper titled "Recursive maturity transformation", September 2013.) [Online Appendix for September 2016 version.]

·       "Capital regulation in a macroeconomic model with three layers of default" (with L. Clerc, A. Derviz, C. Mendicino, S. Moyen, K. Nikolov, L. Stracca, and A. Vardoulakis), International Journal of Central Banking, 11 (2015), 9-64.

·       "Interest rates and credit risk" (with C. González-Aguado), Journal of Money, Credit, and Banking, 47 (2015), 445-480.

·       "The procyclical effects of bank capital regulation" (with R. Repullo), Review of Financial Studies, 26 (2013), 452-490. (Revised version of "The procyclical effects of Basel II", CEPR DP 6862, June 2008.)

·       "Patent litigation and the role of enforcement insurance" (with G. Llobet), Review of Law & Economics, 8 (2012), 789-821. [Revised version of "Financing and the protection of innovators", CEPR DP 4944, March 2005.]

·       "A Pigovian approach to liquidity regulation" (with E. Perotti), International Journal of Central Banking, 7 (2011), 3-41.

·       "The Spanish crisis: Background and policy challenges", Moneda y Crédito, 232 (2011), 151-192.

·       "Deposit insurance and money market freezes" (with M. Bruche), Journal of Monetary Economics, 57 (2010), 45-61. (A previous version circulated under the title "The macroeconomics of money market freezes".)

·       "Social contacts and occupational choice" (with S. Bentolila and C. Michelacci), Economica, 77 (2010), 20-45.

·       "Firms' stakeholders and the costs of transparency" (with A. Almazan and S. Titman), Journal of Economics and Management Strategy, 18 (2009), 871-900.

·       "Financial distress, bankruptcy law, and the business cycle" (with O. Sussman), Annals of Finance, 3 (1) (2007), 5-35.

·       "Incomplete wage posting" (with C. Michelacci), Journal of Political Economy, 114 (6) (2006), 1098-1123.

·       "Loan pricing under Basel capital requirements" (with R. Repullo), Journal of Financial Intermediation, 13 (4) (2004), 496-521.

·       "Venture capital finance: A security design approach" (with R. Repullo), Review of Finance, 8 (2004), 75-108.

·       "Business creation and the stock market" (with C. Michelacci), Review of Economic Studies, 71 (2) (2004), 459-481.

·       "Entrenchment and severance pay in optimal governance structures" (with A. Almazan), Journal of Finance, 58 (2) (2003), 519-548.

·       "Managerial compensation and the market reaction to bank loans" (with A. Almazan), Review of Financial Studies, 16 (1) (2003), 237-261.

·       "Last bank standing: What do I gain if you fail?" (with E. Perotti), European Economic Review, 46 (09) (2002), 1599-1622.

·       "Entrepreneurial moral hazard and bank monitoring: A model of the credit channel" (with R. Repullo), European Economic Review, 44 (10) (2000), 1931-1950.

·       "Financial distress and the business cycle" (with O. Sussman), Oxford Review of Economic Policy, 15 (3) (1999), 39-51.

·       "Risk-taking and the prudential regulation of banks", Investigaciones Económicas, 22 (1998), 307-336.

·       "Monitoring, liquidation, and security design" (with R. Repullo), Review of Financial Studies, 11 (1998), 163-187. Reprinted in S. Bhattacharya, A. Boot, and A. Thakor (eds.), Credit, Intermediation, and the MacroeconomyOxford University Press, Oxford (2004). 

·       "Endogenous cycles in a Stiglitz-Weiss economy" (with O. Sussman), Journal of Economic Theory, 76 (1997), 47-71. Reprinted in B. Biais and M. Pagano (eds.), New Research in Corporate Finance and Banking, Oxford University Press, Oxford (2002). 


B. Unpublished (reverse chronological order)

·       "Twin defaults and bank capital requirements" (with C. Mendicino, K. Nikolov, J. Rubio-Ramirez and D. Supera), November 2023. (Revised version of CEPR DP 14427, January 2021.)

·       "On the interaction between patent screening and its enforcement" (with G. Llobet and A. Parra), October 2023. (Revised version of CEPR DP 16715, November 2021.

·       "A model of interacting banks and money market funds" (with M. Farias), May 2023.

·       "Optimally solving banks’ legacy problems" (with A. Segura), March 2020. (Revised version of CEPR DP 13718, April 2019.)

·       "The procyclicality of expected credit loss provisions" (with J. Abad), October 2018. (Revised version of "Assessing the cyclical implications of IFRS 9 – A recursive model", ESRB Occasional Paper No. 12, July 2017.)

·       "Equity versus bail-in debt in banking: An agency perspective" (with C. Mendicino and K. Nikolov), January 2018.

·       "Banks’ endogenous systemic risk taking" (with D. Martínez-Miera), September 2014. (Revised version of "A macroeconomic model of endogenous systemic risk taking", CEPR DP 9134, September 2012.)

·       "Entrepreneurial innovation, patent protection, and industry dynamics" (with G. Llobet), March 2013. (Revised version of "Financially constrained innovation, patent protection, and industry dynamics", RICAFE WP 052, January 2008.)

·       "Hot and cold housing markets: International evidence" (with J. Ceron), CEPR DP 5411, January 2006.

·       "Closure rules, market power and risk-taking in a dynamic model of bank behavior", LSE Financial Markets Group DP 196, November 1994. (Re-typed version of the original manuscript, with new pagination.)


Selected contributions to policy reports (reverse chronological order)

·       Corporate credit and leverage in the EU: Recent evolution, main drivers and financial stability implications (with T. Beck, T. Peltonen, E. Perotti, A. Sánchez-Serrano), Reports of the Advisory Scientific Committee No. 14, European Systemic Risk Board, June 2023.

·       On the stance of macroprudential policy (with S. Cecchetti), Reports of the Advisory Scientific Committee No. 11, European Systemic Risk Board, December 2021.

·       Approaching non-performing loans from a macroprudential angle (with A. Sánchez-Serrano), Reports of the Advisory Scientific Committee No. 7, European Systemic Risk Board, September 2018.

·       Financial stability implications of IFRS 9, ESRB Report, European Systemic Risk Board, July 2017.

·       Too late, too sudden: Transition to a low-carbon economy and systemic risk, Reports of the Advisory Scientific Committee No. 6, European Systemic Risk Board, February 2016.


Policy papers, non-refereed publications and other writings (reverse chronological order)

·       "Reforming bank stress testing in the EU: reflections in light of the EBA’s discussion paper on the issue" (with W. Buiter), ASC Insight No. 1, European Systemic Risk Board, August 2020.

·        "IFRS 9 and COVID-19: Delay and freeze the transitional arrangements clock" (with J. Abad), in A. Bénassy-Quéré and B. Weder di Mauro (eds.), Europe in the Time of Covid19, A VoxEU.org eBook, CEPR Press (2020), 98-103.

·       "The simple analytics of systemic liquidity risk regulation" (with E. Perotti), in D. Schoenmaker (ed.), Macroprudentialism, A VoxEU.org eBook, CEPR Press (2014), 129-135.

·       "Macroprudential capital tools: assessing their rationale and effectiveness" (with L. Clerc, A. Derviz, C. Mendicino, S. Moyen, K. Nikolov, L. Stracca, and A. Vardoulakis), Banque de France Financial Stability Review, 18 (2014), 183-193.

·       "The socially optimal level of capital requirements: a view from two papers", in V. Acharya, T. Beck, D. Evanoff, G. Kaufman, and R. Portes (eds.), The Social Value of the Financial Sector: Too Big to Fail or Just Too Big, World Scientific Studies in International Economics, vol. 29 (2013), 257-266.

·       "A three-pillar solution to the Eurozone crisis", VOX column 6874, 15 August 2011.

·       "Discussion of: Procyclicality of capital requirements in a general equilibrium model of liquidity dependence", International Journal of Central Banking 6(4) (2010), 175-186.

·       "Liquidity insurance for systemic crises" (with E. Perotti), CEPR Policy Insight 31, February 2009.  Summarized in FT.com/economistsforum (24/02/2009). Republished in Italian as "Un’assicurazione contro le crisi sistemiche", Equilibri, 13(3) (Dicembre 2009), 391-396.

·       "La gestión de los problemas de confianza en tiempos de crisis sistémica" (in Spanish), Perspectivas del Sistema Financiero, 95 (2009), 1-17.

·       "Bringing money markets back to life", VOX column 2411, 13 October 2008. Republished in French as "Ramener rapidement les marchés monétaires à la vie", Commentaire, 124 (Hiver 2008-2009), 1001-1004.

·       "The need for an emergency bank debt insurance mechanism", CEPR Policy Insight 19, March 2008. (A summary of this piece appeared as VOX column 1013, 27 March 2008.)


Participation in policy-oriented forums in the aftermath of the Global Financial Crisis (years 2009-2012) (reverse chronological order)

·       15th Annual International Banking Conference, Federal Reserve Bank of Chicago, Chicago, 15-16 November 2012. Presentation on "The socially optimal level of capital requirements".  [Website]

·       Spanish Capital Market Forum 2012, Euromoney Conferences, Madrid, 29 May 2012. Panellist on "The future of the Spanish economy in the Eurozone".

·       Workshop on "Liquidity Regulation", Federal Reserve Board, Washington, 4 November 2011. Presentation on "A Pigovian approach to liquidity regulation".

·       Panel on "Crisis Resolution in Financial Institutions and Countries", 38th Annual Meeting of the European Finance Association, Stockholm, 19 August 2011.

·       XXIII Symposium Moneda y Crédito: The Way Out of the World Recession: Policy Strategies and Trade-Offs", Fundación Banco Santander, Madrid, 4 November 2010. Presentation on "The Spanish crisis: Background and policy challenges". [Slides]

·       CEPR Conference on "The Future of Regulatory Reform", Grocers’ Hall, London, 4 October 2010. Invited speaker.

·       DNB/UvA Workshop on Preventive Macro Prudential Instruments, De Nederlandsche Bank, Amsterdam, 3 September 2010. Invited academic.

·       Roundtable on the Macroeconomic Impact of Strengthened Capital and Liquidity Requirements, Macroeconomic Assessment Group, Bank for International Settlements, Basel, 17 May 2010.

·       World Bank training hub on "Macro-Financial Policies", Joint Vienna Institute, Vienna, 5-9 April 2010. Two lectures. [Slide set 1][Slide set 2]

·       Roundtable to discuss contingent capital and systemic resolution levies, HM Treasury, London, 25 January 2010. Invited academic.

·       Seminar on "The procyclical effects of bank capital regulation", DG Internal Market and Services, European Commission, Brussels, 15 January 2010. Invited speaker. [Slides]

·       DNB/UvA/IMF Workshop on Concrete Macro-Prudential Tools, De Nederlandsche Bank, Amsterdam, 13 January 2010. Invited academic. [Slides]

·       Desayuno de Redacción: "El sistema financiero mundial tras la crisis", Cinco Días, Madrid, 12 November 2009. [Media coverage, in Spanish]

·       Seminario de Discusión Económica y Financiera: "Supervisión Macroprudencial" , Banco de España, Madrid, 11 November 2009. Comments to presentation by Claudio Borio.

·       10th Bank of Finland/CEPR Conference on "Credit Crunch and the Macroeconomy", Helsinki, 15-16 October 2009. Panellist.

·       BCBS/CGFS roundtable on Systemic Liquidity Risk, Bank of France, Paris, 13 October 2009. Invited speaker.

·       ECB / DG ECFIN (European Commission) Workshop "The Crisis: Impact so Far and Possible Lessons", European Central Bank, Frankfurt, 1-2 October 2009. Discussant.

·       Bernácer Conference "The future of central banking: Lessons from the genesis and management of the crisis", Banco de España, 10 June 2009. Panellist. [Transcript]

·       CFS Research Conference on "A New Supervisory Architecture for Europe’s Banking System", Frankfurt, 5 June 2009. Invited speaker. [Slides]

·       CEPR-NCAER Conference on "India in the G20: Macroeconomic Policy Coordination, Regulation and Global Governance", New Delhi, 1 June 2009. Invited speaker. [Paper]

·       2009 International Conference "Financial System and Monetary Policy Implementation", Bank of Japan, 27-28 May 2009. Invited speaker. [Website]

·       37th Economics Conference "Beyond the Crisis: Economic Policy in a New Macroeconomic Environment", Oesterreichische Nationalbank, Vienna, 14-15 May 2009. Panellist.


Recent participation in externally funded research teams and networks (reverse chronological order)

·       Financial Intermediation and Aggregate Performance, funded by Ministerio de Ciencia e Innovación (PID2022-142998NB-I00), 2023-2025.

·       Economic Analysis of Bank Risk: Implications for Regulation, Supervision, Resolution, and Macroeconomic Performance, funded by Ministerio de Economía y Competitividad (PGC2018-097044-B-I00), 2019-2021.

·       New Frontiers in Financial Economics, funded by Ministerio de Economía y Competitividad (ECO2014-59262), 2015-2017.

·       Banking Regulation after the Crisis, funded by Ministerio de Economía y Competitividad (ECO2011-26308), 2012-2014.

·       Corporate Finance and Banking under Information and Incentive Problems, funded by Ministerio de Ciencia e Innovación (ECO2008-00801), 2009-2011.

·       Regional Comparative Advantage and Knowledge-Based Entrepreneurship (RICAFE2), funded by the European Commission (RCIT5-CT-2006-028942), 2006-2008.

·       The Economics of Intermediation: Real, Financial and Regulatory Aspects, funded by Ministerio de Educación y Ciencia (SEJ2005-08875), 2005-2008.

·       European Corporate Governance Training Network (ECGTN), funded by the European Commission (MRTM-CT-2003-504799), 2005-2007.

·       Risk Capital and the Financing of European Innovative Firms (RICAFE), funded by the European Commission (HPSE-CT-2002-00140), 2003-2005.

·       Capital and Risk in Banking, funded by Ministerio de Educación y Ciencia (BEC2002-03034), 2002-2005.

·       Understanding Financial Architecture, funded by the European Commission (HPRN-CT-2000-00064), 2000-2004.


Awards and scholarships

CEMFI MSc Scholarship (1989-1991), CEMFI Prize to the Best Student of the Class (1991), Pre-doctoral grant from the Spanish Ministry of Education (1992), Research grant from Fundación BBVA (1993).

V Premio Fundación Banco Herrero (2006) (5th Fundacion Banco Herrero Prize for researchers younger than 40 years old in the fields of economics, business, and social research).

2018 Journal of the European Economic Association (JEEA) “Excellence in Refereeing Award”.


Useful links

Author page at Google Scholar
Author page at the Social Science Research Network

Author page at CEPR.org

Updated: November 2023