The JRC supports the Commission in the effort of assessing risks for the financial sector raising for digital finance. Namely, the team makes use of statistical analyses, computation and modelling tools to anticipate and quantify financial risks triggered by systemic events, such as the COVID emergency and the twin transition, to improve prudential regulation for banks and insurances.
Currently, the JRC is supporting the Directorate-General Economic and Financial Affairs to assess the impact on banks’ balance sheets and profitability of introducing a Central Bank Digital Currency.
Alessi, L. and Savona, R., Machine learning for financial stability, In: Data Science for Economics and Finance: Methodologies and Applications, 2021, ISBN 978-3-030-66891-4 (online), p. 65-87, JRC122499.
Bellia M., Calès L. (2022) Bank profitability and central bank digital currency, JRC Working Papers in Economics and Finance, forthcoming.