Using Bank Data to Identify Corruption

17 September 2015
17:00  - 18:30

Prof. Sumit Agarwal, Department of Economics, Finance and Real Estate, National University of Singapore

In this lecture Prof. Agarwal will discuss how regulators can detect corruption and insider trading behavior. Corruption costs the world over 1 trillion dollars annually. Most people agree it is value destroying. So, if we can try to minimize the role of corruption it would be a worthy goal. He will present three cases from which important lessons can be drawn. In the first, coming from China, he looks at how some banks influenced bureaucrats by providing them higher lines of credit and then letting them default and reinstate their account. In return the bureaucrats gave the banks cheap sources of deposits. In another example, from Singapore, he will discuss how bureaucrats used inside information to benefit from their housing transactions at the cost of the general public. Finally, in a third example from Mexico, he will discuss how banks gave loans to firms in the districts of politicians who held influential portfolios.


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