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Assessing risk and resilience of Non-Bank Financial Intermediation (Advert Reference: RDF22/BL/AFM/CHANDORKAR)

   Faculty of Business and Law

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  Dr Pankaj Chandorkar, Dr Zary Aftab, Prof J Brzeszczyński  No more applications being accepted  Competition Funded PhD Project (Students Worldwide)

About the Project

Rationale: The COVID-19 crisis has highlighted the crucial role non-bank financial intermediation (NBFI) plays in the financial system's stability. NBFI has grown faster than banks in 2020 and now represents approximately half of the global financial system amounting to $200 trillion in total financial assets. NFBI has become an increasingly important source of funding for several players in the real economy (FSB, 2020). The market distress in March 2020 showed that NBFI gives rise to vulnerabilities that can amplify shocks in other parts of the financial system through (in)direct linkages. Consequently, distress in this vital sector ripples through the whole financial system, which negatively influences the economy. This research aims to identify potential areas of vulnerabilities using data-driven approaches, to help investors and policymakers estimate and mitigate risk arising from those vulnerabilities. 

Description: This project will identify potential areas of fragility and quantify the financial risks arising from NBFI and its spill over to the wider economy. The project will also evaluate the impact of regulatory efforts to mitigate such risks and identify the areas of weaknesses that still exist in the NBFI entities and activities.

The study will estimate risk-contributing factors in NBFI such as risk-taking appetite, leverage built-up, credit and liquidity risk, resulting in systemic risk built-up. This accumulation of risk can lead to a system-wide failure in times of distress. The work will employ suitable econometric models such as regression analysis, value-at-risk measurement approaches, and network modelling to quantify such risks. This exercise will help identify the potential areas that can lead to NBFI’s failure. Identifying vulnerabilities is an important first step in understanding the weaknesses in the system that need regulatory attention. Multiple market events (e.g., COVID-19 and NFBI reporting requirements introduced after global financial crisis) have created an opportunity to study the efficacy and effectiveness of existing regulations. The research will employ policy evaluation tools including regression discontinuity design, the difference in differences approach and matching methods to evaluate the impact of current regulatory efforts. Doing so will highlight the policies that have proved helpful in maintaining financial stability as well as the rules that have unintentionally exacerbated the vulnerabilities in NBFI. It will also bring attention to the areas that have evaded regulatory scrutiny but represent a significant risk to the financial system. Consequently, this work will provide insights into the risk landscape of NBFIs, which practitioners and policymakers can use to form risk mitigation strategies to improve the resilience and overall financial stability of the system.

The supervision team will consist of Dr Chandorkar; Dr. Zary Aftab; Professor Brzeszczynski.

Eligibility and How to Apply:

Please note eligibility requirement:

  • Academic excellence of the proposed student i.e. 2:1 (or equivalent GPA from non-UK universities [preference for 1st class honours]); or a Masters (preference for Merit or above); or APEL evidence of substantial practitioner achievement.
  • Appropriate IELTS score, if required.
  • Applicants cannot apply for this funding if currently engaged in Doctoral study at Northumbria or elsewhere or if they have previously been awarded a PhD.

For further details of how to apply, entry requirements and the application form, see


Please note: Applications that do not include a research proposal of approximately 1,000 words (not a copy of the advert), or that do not include the advert reference (e.g. RDF22/BL/AFM/CHANDORKAR) will not be considered.

Deadline for applications: 18 February 2022

Start Date: 1 October 2022

Northumbria University takes pride in, and values, the quality and diversity of our staff and students. We welcome applications from all members of the community.

Funding Notes

Each studentship supports a full stipend, paid for three years at RCUK rates (for 2021/22 full-time study this is £15,609 per year) and full tuition fees. UK and international (including EU) candidates may apply.
Studentships are available for applicants who wish to study on a part-time basis over 5 years (0.6 FTE, stipend £9,365 per year and full tuition fees) in combination with work or personal responsibilities.
Please also read the full funding notes which include advice for international and part-time applicants.


Dr. Zary Aftab
Aftab, Z., & Varotto, S. (2019). Liquidity and shadow banking. Journal of International Money and Finance, 99, 102080.
Dr. Pankaj Chandorkar
Chandorkar, P., Poshakwale, S. S., & Agarwal, V. (2019). Implied volatility and the cross section of stock returns in the UK. Research in International Business and Finance, 48, 271-286.
Chandorkar, P., & Poshakwale, S. S. (2019). The impact of aggregate and disaggregate consumption shocks on the Equity Risk Premium in the United Kingdom. Annals of Economics and Finance, 20(2), 489-524.
Chandorkar, P. & Poshakwale, S., (2016). The impact of monetary policy shocks on the equity risk premium before and after the quantitative easing in the United Kingdom. Investment Management and Financial Innovations, 13(4), 146-159
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