From left, Tore Ellingsen, Hans Ellegren and John Hassler members of the Royal Swedish Academy of Sciences announce the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2022, during a press conference at the Royal Swedish Academy of Sciences in Stockholm, Sweden, Monday, Oct. 10, 2022. (AP)

FILE – Federal Reserve Chairman Ben Bernanke. 2022’s Nobel Prize in economic sciences has been awarded to three U.S.-based economists “for research on banks and financial crises.”The award to Ben S. Bernanke, Douglas W. Diamond and Philip H. Dybvig was announced Monday, Oct. 10, 2022. (AP Photo)

This year’s laureates in economic sciences, Ben Bernanke, Douglas Diamond and Philip Dybvig, have significantly improved our understanding of the role of banks in the economy, particularly during financial crises. An important finding in their research is why avoiding bank collapses is vital.

The work for which Ben Bernanke, Douglas Diamond and Philip Dybvig are being recognised has been crucial to subsequent research that has enhanced our understanding of banks, bank regulation, banking crises and how financial crises should be managed.