PhD Traineeships in Macroprudential Policy and Financial Stability

Students and graduates
Macroprudential Policy & Financial Stability
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General Information

Type of contract PhD traineeship

Who can apply? EU nationals eligible for our traineeship programme (see further information section)

Grant The trainee grant is €1,970 per month plus an accommodation allowance (see further information section)

Working time Full time

Place of work Frankfurt am Main, Germany

Closing date 24.10.2021

Your team

You will be part of the Directorate General Macroprudential Policy and Financial Stability. Our Directorate General has approximately 100 staff members providing analyses and policy advice on issues relating to financial stability, financial regulation and macroprudential policy. In particular, we identify and measure systemic risks, and assess the impact of regulations and macroprudential measures. We work on policy strategy and coordination, as well as the challenges facing the banking and non-banking sectors. Our Directorate General is currently also working on a financial system-wide assessment of risks and vulnerabilities resulting from the coronavirus (COVID-19) pandemic. We are looking for PhD trainees in the Macroprudential Policy Division, the Systemic Risk and Financial Institutions Division, the Market-based Finance Division, and the Financial Regulation and Policy Division.

In the area of macroprudential policy, we identify and monitor systemic risks at the country level to inform the potential activation of macroprudential tools. In addition, we design, assess and propose macroprudential policy measures in countries participating in European banking supervision and evaluate their impact ex post. 

In the area of systemic risk and financial institutions, we analyse developments in the banking sector and the broader financial system in the euro area from a systemic risk perspective. We coordinate the production of the Financial Stability Review. We also assess and propose structural macroprudential policy measures for systemic banks. 

In the area of market-based finance, we assess systemic risks arising from the activities and behaviours of non-bank financial intermediaries and market participants. We also monitor and assess financial stability risks in financial markets and coordinate the market intelligence activities of the Directorate General. 

In the area of financial regulation, we analyse policy issues relating to financial regulation from a financial stability and financial integration perspective. We conduct impact analysis on regulatory developments to assess the effectiveness of adopted or proposed reforms from a macroprudential perspective. We also contribute to European and international discussions on regulatory and supervisory issues.

In your role as a PhD trainee, you will be part of a team with approximately 20 members of staff responsible for policy-relevant analysis, model development and coordination of the ECB’s views on the issues outlined above. You will work closely with one or two experts, contributing to projects that are of relevance to the division to which you are assigned.

The ECB is an inclusive employer and we strive to reflect the diversity of the population we serve. We encourage you to apply irrespective of age, disability, ethnicity, gender, gender identity, race, religious beliefs, sexual orientation or other characteristics.

Your role

As a PhD trainee you will:
  • in the area of macroprudential policy, contribute to the design, assessment and evaluation of macroprudential policies (including their interaction with other policies) and work empirically with large granular datasets, such as balance sheet and loan-level data of households and non-financial corporations, to assess, for example, the use of capital buffers by banks and the interaction of different policies. You will provide analytical input to the wider debate of prudential policy effectiveness, employing macro- and microeconometric modelling techniques;
  • in the area of systemic risk and financial institutions, contribute to the surveillance and assessment of potential systemic risks originating in the banking sector and to the monitoring of systemically important institutions using large and complex granular datasets for econometric modelling. This may include, for example, the analysis of bank profitability, bank asset quality, bank risk-taking and bank funding, as well as the study of financial interconnectedness and contagion channels;
  • in the area of market-based finance, work on research projects assessing systemic risk in the non-bank financial sector, including from asset management and insurance activities, and its role in funding the real economy; work empirically with large granular datasets, such as data reports on derivatives or securities financing transactions, portfolio holdings data, or commercial data on investment funds and financial markets; and provide analytical input to the wider policy debate around non-bank financial intermediation and systemic risk;
  • in the area of financial regulation, contribute to the assessment of policy issues in the areas of macroprudential policies, financial sector regulation, and/or financial stability arrangements including impact assessments to evaluate the effectiveness of adopted or proposed reforms from a financial stability and financial integration perspective. This may include, for example, empirical analysis on the interaction between regulations, the issue of capital buffer usability, or banks’ intermediation activities and financial and real sector outcomes more broadly. Additional issues of interest are sustainable finance, non-bank financial intermediation, interaction between integration and stability and the interaction between micro- and macroprudential instruments.

The position offers you excellent opportunities to familiarise yourself with the work of the area to which you are assigned through different tasks and projects. You will be able to develop your potential, gain an overview of all the activities performed by the Directorate General and may also contribute to its regular work. You will have your own assigned supervisor, but you will be expected to use your own initiative and work in a largely autonomous way in order to complete your projects. 

You will be able to attend a wide range of seminars and access the ECB’s library, as well as computing, programming and statistical resources. You will have an excellent opportunity to network, engage with other employees and increase your personal awareness and business knowledge. You will be part of a multicultural team that strives for continuous innovation to make a positive impact on the lives of European citizens.

Qualifications, experience and skills

Essential: 
  • a master’s degree and at least two years of PhD studies in the field of finance, law (with a focus on financial markets), economics, statistics, mathematics, physics, engineering, computer science or a related discipline;
  • a solid background in one or more of the following fields: macroeconometrics (including Bayesian VARs), financial instruments, institutions and markets, expertise in financial sector analysis, policy and/or regulation, panel data econometrics, DSGE models, numerical techniques, mathematical optimisation models, computational economics, network analysis, banking theory, monetary economics and/or corporate finance;
  • an advanced (C1) command of English and an intermediate (B1) command of at least one other official language of the EU, according to the Common European Framework of Reference for Languages.

Desired: 
  • experience in working with large granular datasets, combining different data sources and drawing information from complex financial and real sector data;
  • an advanced knowledge of programming languages and econometric software (e.g. Python, R, MATLAB, C++, Stata, SQL and/or EViews);
  • a good knowledge of at least one of the areas described under “your role” above.

You are curious and eager to learn, and want to further develop your ability to analyse complex information. You are keen to collaborate with others, pursue team goals and learn from other people’s diverse perspectives. You strive to know and anticipate stakeholder needs, and will signal any need for change and propose alternative solutions.

You are motivated to contribute to the ECB’s mission, to serve the citizens of the EU as a member of a public institution and to work with colleagues from all over Europe. You are keen to be part of our team and to use your skills and competencies to achieve the objectives of this position.

Further information

PhD traineeship of between 3 and 12 months in total.

The earliest starting date will be mid-January 2022, and additional dates will be available throughout 2022.

Application and selection process

Further information on how to join us is available on our website.

The recruitment process for this position will include an online interview.