Esa Jokivuolle, Senior Research Adviser, Research Unit

010 831 2309 (national),
+358 10 831 2309 (international)
Postal address
PO Box 160
FI – 00101 HELSINKI 
010 831 2294 (national),
+358 10 831 2294 (international)



Esa Jokivuolle is Senior Research Adviser in the Research Unit of the Monetary Policy and Research Department.





M.Pol.Sc. (Economics), University of Helsinki, 1990
Ph.D. (Finance), University of Illinois at Urbana-Champaign, 1996


Work experience

Adjunct Professor (Finance) since 2001, full-time visiting in 2002–3 and 2011, Aalto University School of Economics (former Helsinki School of Economics)
Research Adviser, Department of Monetary Policy and Research, Bank of Finland, 2005– (on leave of absence during 2011)
Project Supervisor, Financial Markets and Statistics Department, Bank of Finland, 1999–2005
Senior Quantitative Analyst, Leonia Ltd (former Postipankki Ltd), 1997–1999
Researcher, 1996, assistant/tutor 1990–1991 and 1994–1995, University of Helsinki


 Selected publications


Articles in refereed journals

Why is credit-to-GDP a good measure for setting countercyclical capital buffers?
Journal of Financial Stability, forthcoming (with Jarmo Pesola and Matti Virén) 

Does a Leverage Ratio Requirement Increase Bank Stability?
Journal of Banking and Finance, February 2014, Vol. 39, pp. 240–254 (with Ilkka Kiema)

Why Do We Need Counter-cyclical Capital Requirements?
Journal of Financial Services Research, 2014, Volume 46, Issue 1, pp 55–76 (with Ilkka Kiema and Timo Vesala)
Cyclical Default and Recovery in Stress Testing Loan Losses
Journal of Financial Stability, Volume 9, Issue 1, April 2013, Pages 139–149 (with Matti Virén)
Rating Targeting and Dynamic Economic Capital
Journal of Risk, Summer 2010, Vol. 12, No. 4: 3-13 (with Samu Peura)
Trading Nokia: The roles of the Helsinki vs the New York stock exchanges  
The Finnish Journal of Business Economics, 3/2005 (with Markku Lanne)
Simulation Based Stress Tests of Banks' Regulatory Capital Adequacy
Journal of Banking and Finance, September 2004 (with Samu Peura)
(received the Iddo Sarnat Annual Memorial Award for the best paper published in the Journal of Banking and Finance, Volume 28, 2004)
Incorporating Collateral Value Uncertainty in Loss-Given-Default Estimates and Loan-to-Value Ratios
European Financial Management, September 2003 (with Samu Peura)
Regulatory Capital Volatility
Risk, May 2001 (with Samu Peura)
Pricing European Options on Autocorrelated Indexes
Journal of Derivatives, Winter 1998 
Measuring True Stock Index Value in the Presence of Infrequent Trading
Journal of Financial and Quantitative Analysis, Vol. 30, No. 3, September 1995

Articles in scientific books

Transmission of Macro Shocks to Loan Losses in a Deep Crisis: The Case of Finland
Model Risk – Identification, Measurement and Management, Ed. D. Rösch and H. Scheule, Risk Books 2010 (with Matti Virén and Oskari Vähämaa)

Macro Model-Based Stress Testing of Basel II Capital Requirements
Stress-Testing for Financial Institutions – Applications, Regulations and Techniques, Ed. D. Rösch and H. Scheule, Risk Books, 2008 (with Kimmo Virolainen and Oskari Vähämaa)

Stress Tests of Banks’ Regulatory Capital Adequacy: Application to Tier 1 Capital and to Pillar 2 Stress Tests
The Basel Handbook (2nd edition): A Guide for Financial Practitioners. Ed. Michael Ong, Risk Books 2007 (with Samu Peura)

Aligning Regulatory Capital with Economic Capital
Risk Management: A Modern Perspective (ed. Michael Ong), Elsevier 2006

LGD in a Structural Model of Default
Recovery Risk (ed. Altman, Resti and Sironi), Risk Books, 2005 (with Samu Peura)

Stress Tests of Banks' Regulatory Capital Adequacy: Application to Tier 1 Capital
The Basel Handbook: A Guide for Financial Practitioners. Ed. Michael Ong, Risk Books, London, 2004 (with Samu Peura)  

Working papers

Ilkka Kiema – Esa Jokivuolle: Why are bank runs sometimes partial?
(BoF DP 10/2015)

Esa Jokivuolle – Jussi Keppo – Xuchuan Yuan: Bonus caps, deferrals and bankers' risk-taking
(BoF DP 5/2015)

Eero Tölö – Esa Jokivuolle – Matti Virén: Do private signals of a bank’s creditworthiness predict the bank’s CDS price? Evidence from the Eurosystem's overnight loan rates
(BoF DP 9/2014)

Esa Jokivuolle – Juha Kilponen – Tero Kuusi: GDP at Risk in a DSGE Model: An Application to Banking Sector Stress testing
(BoF DP 26/2007)

Other publications

Introduction to the Special Issue on Housing markets – a shelter from the storm or cause of the storm?
Journal of Financial Stability, Volume 6, Issue 4, December 2010, pp. 187–188