PhD traineeships in Macroprudential Policy and Financial Stability

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

Grant The trainee grant is €2,120 per month plus an accommodation allowance (see further information section)

Working time Full time

Place of work Frankfurt am Main, Germany

Closing date 13.09.2022

Your team

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

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

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

In the area of financial regulation, we analyse policy issues from a financial stability and financial integration perspective. We conduct impact analyses 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 of approximately 20 members of staff responsible for policy-relevant analysis, model development and the coordination of the ECB’s views on the issues outlined above. You will work closely with our experts, contributing to projects that are relevant 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 in the Systemic Risk and Financial Institutions Division you will:
  • work on analytical projects to help assess the potential systemic risks originating from the real economy and the banking sector, as well as those stemming from broader threats such as climate change, using large and complex granular datasets for econometric modelling (e.g. credit registers). This may include analysing risks that arise from corporate or sovereign indebtedness, the sovereign-bank nexus and euro area banks’ risk-taking and resilience levels, as well examining financial interconnectedness and contagion channels. 

As a PhD trainee in the Market-based Finance Division you will:
  • work on research projects to assess systemic risks arising from financial markets and the non-bank financial sector, including those emanating from asset management and insurance activities and from the sector’s 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 and commercial data on investment funds and financial markets;
  • provide analytical input into the wider policy debate around non-bank financial intermediation and systemic risk;
  • carry out work relating to (i) the assessment of climate-related risks to non-bank financial intermediaries and financial markets and (ii) the role of green finance in supporting the transition towards a net zero economy, together with the associated policy options.

As a PhD trainee in the Financial Regulation and Policy Division you will:
  • contribute to the assessment of macroprudential and financial regulatory policies 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 empirical analysis of the interaction (i) between regulation and banks’ intermediation activities, (ii) between integration and stability, and (iii) between micro- and macroprudential instruments. Additional issues of interest are (i) sustainable finance, (ii) non-bank financial intermediation, and (iii) the structural transformation of the financial system caused by the evolution of private digital money (such as crypto-assets and stablecoins), together with the role played by private digital money in the wider crypto ecosystem and its linkages with the traditional financial system.

The position offers you excellent opportunities to develop your potential and become familiar with the Directorate General’s activities through varying tasks and projects, possibly including the Directorate General’s regular work. You will be assigned a supervisor but will be expected to take the initiative and complete projects in a largely autonomous way. 

You will be able to attend a wide range of seminars and access the ECB’s library as well as its computing, programming and statistical resources. You will have the 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

  • a master’s degree and at least two years of PhD studies in finance, economics, statistics, mathematics, physics, engineering, computer science or a related discipline;
  • a sound background in one or more of the following fields: macroeconometrics, financial instruments, institutions and markets, financial sector analysis, financial policy and/or regulation, panel data and time series econometrics, VaR models, 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.

  • experience in working with large granular datasets, combining different data sources and drawing information from complex financial and real sector data;
  • advanced programming skills and 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 three and 12 months in total.

The earliest starting date will be mid-January 2023, and additional dates will be available throughout 2023.

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. 

If you are not selected for this position but are still considered suitable, you will be placed on a reserve list for 12 months from the closing date for applications, from which you might be considered for similar positions within the ECB.