Dr Zhao is a micro-economist with a particular interest in exploiting the micro-economic foundation of the financial development on economic growth. Her research focuses on empirical questions regarding 1) how the changes in regulatory structure, market structure and organizational structure influence competition, efficiency, productivity and risk taking behaviour of banks, and 2) how those changes are propagated into the financing and investment policies of the real sector.  Her research also covers the topics regarding the role of economy-wide institutional setting on banks’ risk taking and financial intermediation behaviour. Her recent research relates to the impact of the characteristics of regional banking market on the spatial differential of the access to external finance of the real sector. Her current research considers the implication of the organizational aspects and scoring techniques used in the lending process for SMEs’ access to bank finance.