Events

Liquidity and Leverage - Why Banks?

Hosted by the Centre for Economic Performance

Old Theatre, Old Building

Speaker

Professor Raghuram Rajan

Lionel Robbins was one of the outstanding men of his time; economist, public servant and supporter of the arts. The lectures, which were established in his name, take place each year and are a major event in the life of the School, featuring eminent economists from around the world.

This year Raghuram Rajan, the Katherine Dusak Miller Distinguished Service Professor of Finance at Chicago Booth will deliver the Lionel Robbins Lectures. 

A bank's issuance of short-term demandable or overnight claims in order to finance illiquid loans leads to panics. Since the dawn of banking in Assyria and Sumeria, long before we had central banks, deposit insurance, or a tax advantage to debt, banks have had this structure, and critics have been troubled by it, as they are today. Professor Rajan will argue that this structure of banks - financing illiquid loans with short term or demandable debt - is not just a bug in the system, it is also a feature.

This lecture will focus on why banks have the structure they have - long term illiquid assets financed by short term runnable liabilities. It will explain why the risk of runs is inherent in the business of banking and cannot be eliminated without impinging on that business. 

Raghuram Rajan was the 23rd Governor of the Reserve Bank of India between September 2013 and September 2016. Between 2003 and 2006, Dr. Rajan was the Chief Economist and Director of Research at the International Monetary Fund.

The second of this years Lionel Robbins Lectures will take place on Tuesday 12 March.

Established at LSE in 1990 CEP (@CEP_LSE) is one of Europe's leading economic research centres. It addresses three related questions: How to foster growth? How to share growth? How to make growth sustainable? 

Twitter Hashtag for this event: #LSERobbins

Podcast 

A podcast of this event is available to download from Liquidity and Leverage - Why Banks?

Podcasts and videos of many LSE events can be found at the LSE Public Lectures and Events: podcasts and videos channel.

Social Media

Follow LSE public events on Twitter for notification on the availability of an event podcast, the posting of transcripts and videos, the announcement of new events and other important event updates. Event updates and other information about what’s happening at LSE can be found on the LSE's Facebook page and for live photos from events and around campus, follow us on Instagram. For live webcasts and archive video of lectures, follow us on YouTubeLSE in Pictures is a selection of images taken by the school photographer.

CPD

This event has been certified for CPD purposes by the CPD Certification Service. Self-Assessment Record forms will be made available for delegates wishing to record further learning and knowledge enhancement for Continuing Personal and Professional Development (CPD) purposes. For delegates who wish to obtain a CPD Certificate of Attendance, it is the responsibility of delegates to register their details with a LSE steward at the end of the event and as of 1 September 2014 a certificate will be sent within 28 days of the date of the event attended by the CPD Certification Service.  If a delegate fails to register their details at the event, it will not prove possible to issue a certificate. (For queries relating to CPD Certificates of attendance after a request please phone 0208 840 4383 or email info@cpduk.co.uk).
From time to time there are changes to event details so we strongly recommend that if you plan to attend this event you check back on this listing on the day of the event.

Twitter

LSE Events LSEpublicevents

Catch our LSE Arts photo exhibition exploring conflict and post-conflict themes in Iraq and Syria during the last d… twitter.com/i/web/status/1…

3 hours ago

Reply Retweet Favorite

LSE Events LSEpublicevents

NEXT WEEK: @LSEGeography & @GRI_LSE are hosting Jared Diamond to present his new book on how 7 countries have survi… twitter.com/i/web/status/1…

7 hours ago

Reply Retweet Favorite

  Sign up for news about events