On 10th of October, 2022, the Royal Swedish Academy of Sciences has awarded the 2022 Nobel Prize in Economics, officially known as the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, to professors Ben S. Bernanke, Douglas W. Diamond, and Philip H. Dybvig for research on banks and financial crises.
As Benjamin Hemingway, Junior Research Fellow, Faculty of Economics and Business Administration, Vilnius University (VU), points out, the research of Nobel Prize winners has significantly improved our understanding of the role of banks in the economy and why government intervention may be needed to avoid bank collapses in times of crisis such as during the 2007 financial crisis.