“The impact of European Central Bank's Quantitative Easing on Fair Value in the Banking Industry”

The goal of the thesis is to investigate how banks account for government bonds in their financial statements during different time ranges characterized by various bond yields. A literature and theory review was conducted in order to understand the state of art on this topic and what has already been done by economists. The analysis was conducted using a dataset composed of N banks from European countries and the period considered is of 4 years (2016-2019) split into quarters for a total of 16-time observations for each bank. The choice of considering quarter financial data allows to better study the phenomenon. Once the impact of the bounds yield on regulatory capital was explained, the main finding is to give evidence of how banks act according to the level of spread