Financial Resilience and Systemic Risk Conference

Hosted by the Institute of Global Affairs, the Financial Markets Group and the Systemic Risk Centre


30 and 31 January 2019

Organizers_Financial Resilience and Systemic Risk_747x560
Opening remarks
Copy of DimitriDemekas_Financial Resilience and Systemic Risk_747x560

Session I: Regulatory reform overview

Dimitri Demekas, Bank of England Special Adviser and LSE IGA

Copy of DDemekas_Financial Resilience and Systemic Risk_747x560

Session I: Regulatory reform overview

Franklin Allen, Imperial College

Ernst_Ludwig _Financial Resilience and Systemic Risk_747x560

Session II: "Too-big-to-regulate?"

Ernst-Ludwig von Thadden, Mannheim University

Patrick Bolton_Financial Resilience and Systemic Risk_747x560

Session II: "Too-big-to-regulate?"

Patrick Bolton, Columbia Business School

David Aikman_Financial Resilience and Systemic Risk_747x560

Session III: Non-bank systemic risks

David Aikman, Bank of England

Kevin James_Kilian Huber_Financial Resilience and Systemic Risk_747x560

Session III: Non-bank systemic risks

Kevin James, Financial Conduct Authority UK and LSE SRC

MarG_Financial Resilience and Systemic Risk_747x560

Session IV: Costs/benefits of financial integration and policy implications

Mar Gudmundsson, Governor of the Central Bank of Iceland

Andres Velasco_Financial Resilience and Systemic Risk_747x560

Session IV: Costs/benefits of financial integration and policy implications

Andrés Velasco, LSE School of Public Policy

Michael Bordo & Piroska Nagy Mohacsi_Financial Resilience and Systemic Risk_747x560

 "An historic perspective on the quest for financial stability"

Michael Bordo, Rutgers University

Chair: Piroska Nagy Mohacsi

Marek Belka_Financial Resilience and Systemic Risk_747x560

Session VIII: Rethinking central bank accountability and independence

Marek Belka, LSE IGA, former President of the National Bank of Poland 

Charles Bean_Financial Resilience and Systemic Risk_747x560

Session VIII: Rethinking central bank accountability and independence

Charles Bean, LSE Department of Economics

Mario I Blejer and Paul Wachtel_Financial Resilience and Systemic Risk_747x560

Session VIII: Rethinking central bank accountability and independence

Mario I Blejer, IRSA and LSE IGA

Paul Wachtel, NYU Stern Business School

Building materially resilient financial systems has been a central objective of policy makers following the devastating global financial crisis (GFC) of 2008-2009. 

A lot has happened during the past decade in creating a more robust financial regulatory framework, and some now even call for reversing what they see the post GFC “regulatory grip”. Meanwhile, as necessary as it may have been, the crisis-prompted monetary easing has swelled global liquidity, increased concentration in the industry, exacerbated exchange rate volatility (“currency wars” and now their reversal) and created asset price inflation. Central banks’ pre-crisis accountability arrangements are called into question. Moreover, the previously assumed high economic benefits of globalisation with freely flowing international capital flows may have also been overstated and/or its true costs unrecognised, and it is unclear whether current policy tools to deal with them either at the global or national level are adequate even for countries with sound economic fundamentals. Yet policy makers have also learnt from the management of the crisis and discovered some new tools in the process. Private sector innovations from digitalisation and artificial intelligence are now creating new opportunities – not only risks – that monetary authorities could harness, perhaps in the form of fintech public-private partnerships, to manage systemic risk in the future. 

The fundamental questions remain whether systemic risk is actually lower or not than before the GFC, and whether economies are better equipped both technically and politically to deal with this risk. Has the system as a whole learnt to be more adaptive to shocks? Has crisis management reduced or increased moral hazard in the system? Is financial resilience is materially better than a decade ago?

The conference aimed to investigate these questions under three main themes:

  • Post-crisis regulatory reform
  • Global financial system resilience
  • Central banking and institutional resilience.

Speakers:

 

David AikmanBank of England

 slides

 

Franklin AllenImperial College

slides

 

Charles BeanLSE Department of Economics

 

Marek BelkaLSE IGA, former President of the National Bank of Poland

 

Erik BerglöfLSE IGA

slides

 

Mario I BlejerIRSA and LSE IGA

 

Patrick BoltonColumbia Business School

 

Ralph de HaasEBRD and LSE IGA

slides

 

Dimitri DemekasBank of England Special Adviser and LSE IGA

slides

 

Ben Dyson, Bank of England

 

Mar Gudmundsson, Governor of the Central Bank of Iceland

 

Kilian HuberUniversity of Chicago

 

Kevin JamesFCA, SRC, LSE

slides

 

Ousmène MandengAccenture and LSE IGA

slides

 

Piroska Nagy-MohácsiLSE IGA

 

Ricardo ReisLSE Department of Economics

slides

 

Hélène ReyLondon Business School

 

Christina Segal-KnowlesBank of England and LSE IGA

 

Judy Shelton, EBRD

 

Vania StavrakevaLondon Business School

 

Elöd TakátsBIS and LSE IGA

slides

 

Andrés VelascoLSE School of Public Policy

slides

 

Édouard VidonBank of France

 

Ernst-Ludwig von ThaddenMannheim University

slides

 

Paul WachtelNYU Stern Business School

slides

 

The conference programme can be viewed here.

The conference brought together researchers and policy makersand hosted the following three LSE public lectures:

Podcast

Podcast

  • Thursday 31st  January 2019 6:30pm to 8:00pm | Dr. Vito Tanzi (former Director of the IMF and Deputy Minister of Finance of Italy) | "Fiscal Resilience: Termites of the State" | Wolfson Theatre, New Academic Building

Video

Podcast

 

The event was co-organised by the LSE Institute of Global Affairs (IGA), the Financial Markets Group (FMG) and the Systemic Risk Center (SRC) and supported by a grant of the Rockefeller Foundation.

Financial Resilience and Systemic Risk_747x560
Conference organizers (from left to right): Erik Berglof, IGA; Piroska Nagy Mohacsi, IGA; Jean-Pierre Zigrand, SRC and Dimitri Vayanos (FMG)
Christina Segal-Knowles_Financial Resilience and Systemic Risk_747x560

Session I: Regulatory reform overview

Christina Segal-Knowles, Bank of England and LSE IGA

Kilian Huber_Financial Resilience and Systemic Risk_747x560

Session II: "Too-big-to-regulate?"

Kilian Huber, University of Chicago

DimitriVayanos_Financial Resilience and Systemic Risk_747x560

Session III: Non-bank systemic risks

Dimitri Vayanos, LSE FMG 

Helene Rey_Financial Resilience and Systemic Risk_747x560

Session IV: Costs/benefits of financial integration and policy implications

Helene Rey, London Business School

 

EB_Financial Resilience and Systemic Risk_747x560Edouard Vidon_Financial Resilience and Systemic Risk_747x560

 Session V: Global financial system challenges

Erik Berglof, LSE IGA

Edouard Vidon, Bank de France

Session VI_Financial Resilience and Systemic Risk_747x560

Session VI: New central banking tools & digital currency

Ousmene Mandeng, Accenture and LSE IGA

Ben Dyson, Bank of England

Ricardo Reis, LSE Department of Economics

Judy Shelton_Financial Resilience and Systemic Risk_747x560

Session VIII: Rethinking central bank accountability and independence

Judy Shelton, EBRD

Jacques de Larosière & Erik Berglof_Financial Resilience and Systemic Risk_747x560

"The demise of the Bretton-Woods System explains much of our current financial vulnerabilities"

Jacques de Larosière, Chairman of the Strategic Committee of the French Treasury

Chair: Erik Berglof

Vito Tanzi & Piroska Nagy Mohacsi_Financial Resilience and Systemic Risk_747x560

"Fiscal Resilience: Termites of the State"

Vito Tanzi, former IMF Director for Fiscal Policy and Deputy Minister of France

Chair: Piroska Nagy Mohacsi