Richard J. Herring

Richard J. Herring
  • Jacob Safra Professor of International Banking
  • Professor of Finance

Contact Information

  • office Address:

    2444 Steinberg-Dietrich Hall
    3620 Locust Walk
    Philadelphia, PA 19104

Research Interests: international banking, international finance, money and banking

Links: CV



PhD, Princeton University, 1973; MA, Princeton University, 1970; BA, Oberlin College, 1968

Career and Recent Professional Awards; Teaching Awards

David Hauck Award for Outstanding Teaching, 1995; Undergraduate Division Excellence in Teaching Award, 1990, 1992, 1995

Academic Positions Held

Wharton: 1972-present (Director, The Joseph H. Lauder Institute of Management and International Studies, 2000-2006; Co-Director, Wharton Financial Institutions Center, 2000-present; Vice Dean and Director, Wharton Undergraduate Division, 1995-2000; Director, Financial Institutions Center, 1988-95; Director, Program in International Banking and Finance, 1982-88). Previous appointment: Princeton University. Visiting appointment: Johann Wolfgang Goethe University, Germany

Professional Leadership 2005-2009

Co-editor, Brookings-Wharton Papers on Financial Services (2001-2004); Editorial Board, Journal of Financial Services Research, 1989-2000; Editorial Board, Journal of International Financial Markets, Institutions and Money, 1988-1998; Editorial Board, Research in Financial Services: Private and Public Policy Annual, 1991-present; Editorial Board, Quarterly Review of the Federal Reserve Bank of New York, 1994-present; Member, Shadow Financial Regulatory Committee, 1990-present; Co-Chair, 2004-present. Member, Multinational Banking Seminar, 1982-2005, American Chairman, 1992-2005. Financial Economists Roundtable, 2000-present.

Corporate and Public Sector Leadership 2005-2009

Trustee, DWS Scudder Funds, 1990-present. Trustee, Daiwa Country Funds, 2007-present.

Continue Reading


  • Richard J. Herring, C. Fernando, A. Subrahmanyam (2007), Common Liquidity Shocks and Market Collapse: Lessons from the Market for Perps, Journal of Banking and Finance, 2008. 10.1016/j.jbankfin.2007.11.011

    Abstract: We show how a high degree of commonality in investor liquidity shocks can diminish incentives for intermediaries to keep markets open and lead to market collapse, even without information asymmetry or news affecting fundamentals. We motivate our model using the perpetual floating-rate note market where two years of explosive growth – in which issues by high quality borrowers were placed with institutional investors and traded in a liquid secondary market – were followed by a precipitous collapse when market intermediaries withdrew due to large order imbalances. We shed new light on the trade-off between ownership concentration and market liquidity.

  • Richard J. Herring and N. Chatusripitak, “The Case of the Missing Market: the Bond Market & Why it Matters for Financial Development (2006)

  • Richard J. Herring (2005), Implementing Basel II: Is the Game Worth the Candle?, Financial Markets, Institutions & Instruments, Vol. 14, Number 5, 2005.

    Abstract: In this article the author provides an extensive analysis of the various aspects of the Basel II Accord. Notwithstanding the gains from adoption of Basel II, he argues that these gains are unlikely to outweigh the costs of implementation and compliance: Basel II will be very costly for banks, home and host country supervisors, and, to the extent that it exacerbates macroeconomic cycles, to the broader economy as well.


Past Courses


    Integrates the work of the various courses and familiarizes the student with the tools and techniques of research.


    This course focuses on international financial institutions, especially the activities of global, systemically important banks. We will examine how current and historical events are reshaping the industry and highlight the basic analytics of managing a bank's exposure to liquidity, credit, market and reputational risk. Most classes will begin with discussion of a current event related to course topics. Team projects will give deeper exposure to analytic techniques related to the course. Throughout the semester, we will discuss public policy issues facing the international financial system. In addition to prerequisites, FNCE 613 may be taken concurrently.


    Independent Study Projects require extensive independent work and a considerable amount of writing. ISP in Finance are intended to give students the opportunity to study a particular topic in Finance in greater depth than is covered in the curriculum. The application for ISP's should outline a plan of study that requires at least as much work as a typical course in the Finance Department that meets twice a week. Applications for FNCE 899 ISP's will not be accepted after the THIRD WEEK OF THE SEMESTER. ISP's must be supervised by a Standing Faculty member of the Finance Department.


    The senior thesis course is a capstone for seniors in the Huntsman Program in International Studies and Business. Students in the Huntsman Program should consult with the Huntsman Program advisors for more information.


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In the News

Can Stress Tests Be Effective Crisis-fighting Tools for Banks?

Based on research conducted jointly with economist Til Schuermann of Oliver Wyman, Wharton’s Richard Herring says the impact of the coronavirus crisis reveals the importance of designing stress tests that go beyond conventional shocks to the economy.

Knowledge @ Wharton - 2020/04/15
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