Prof. Douglas W. Diamond , one of the world's leading authorities on bank runs and liquidity crises who is considered the father of modern banking theory, has been awarded the 2018 Onassis Prize in Finance.

Awarded every three years, the Onassis Prize recognizes the world’s foremost academics in the fields of finance, international trade and shipping, to honor outstanding academic achievements that have had international significance. Nobel laureate and Chicago Booth scholar Eugene Fama won the inaugural prize in finance in 2009.

“I am delighted to receive the Onassis Prize,” said Diamond, the Merton H. Miller Distinguished Service Professor of Finance at the University of Chicago Booth School of Business. “After the recent financial crisis, policymakers and scholars have a renewed focus on the stability of financial institutions.”

Diamond changed the way people view banks through his pioneering research, which laid the groundwork for how central bankers, regulators, policymakers and academics approach modern finance. His research agenda for the past 30 years has been to explain what banks do, why they do it and the consequences of these arrangements.

Named after Aristotle Onassis who excelled in these three disciplines, each Onassis Prize is worth $200,000; they are sponsored by the Onassis Foundation and awarded jointly by Cass Business School London with the Onassis Foundation.

—This story first appeared on the Chicago Booth website.