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Event Frankfurt am Main | 2014-02-27 - 2014-02-28
 

Symposium on Financial Stability and the Role of Central Banks

In light of the challenges that have emerged in the recent past, central banks and supervisors worldwide have had to adjust their operational and regulatory framework to maintain the proper functioning and strengthen the resilience of the financial system. Alongside these steps, an extensive range of reform measures have been undertaken to increase financial market stability going forward.

Against this backdrop, the Deutsche Bundesbank is hosting a two-day symposium on "Financial Stability and the Role of Central Banks". High-level representatives from academia, politics, financial markets, supervisory authorities and central banks will discuss the current state of the reform process as well as areas where further action might be required. Specifically, the conference covers the following four major topics:

  • the relation and potential interaction between monetary policy and financial stability,
  • the specific role and mandate of central banks in the new environment,
  • the current state of banking regulation and modifications that may be required, and finally,
  • the regulatory framework for non-banking participants in the financial system.

The individual sessions will be filmed and the films will be published on the same day.

Welcome address
Thursday,
27 February
2.00 pm
Jens Weidmann,
President, Deutsche Bundesbank

Session

Monetary policy and financial stability –
the end of benign neglect?
Thursday,
27 February
2.30-4.00 pm

Three different presentations shedding light on the interaction of monetary policy and financial stability.
Has monetary policy contributed to excessively optimistic risk assessments, the compression of risk premia, global imbalances and the expansion of leverage?
Should additional (macro-prudential, regulatory) measures be added to the monetary policy toolkit to ensure financial stability?

Participants:
Franklin Allen (Wharton),
Claudio Borio (BIS),
Markus Brunnermeier (Princeton)

Chair:
Volker Wieland (Frankfurt)

Panel 1

A broader role for central banks following the crisis –
imperial overstretch or a better paradigm?
Thursday,
27 February
4.30-6.00 pm

What macro-prudential and regulatory measures are needed to safeguard financial stability?
Can this task be assigned to a central bank without compromising its mandate to ensure price stability?
What might the other challenges be?
How should the financial system be regulated and supervised (eg domestic vs supranational level)?

Participants:
Viral Acharya (NYU Stern),
Olivier Blanchard (IMF),
Richard Fisher (Federal Reserve),
Otmar Issing (CFS),
Klaas Knot (DNB)

Chair:
Mark Schieritz (Die Zeit)

Reception and dinner
Thursday,
27 February
7.30 pm
Mario Draghi,
President, European Central Bank

Panel 2

Pittsburgh and beyond:
are banking activities safer than before?
Friday,
28 February
10.00-11.30 am

This panel will debate the current state of banking regulation: Are banks well prepared for the new regulatory landscape?
How have banks adjusted their business models?
Is there sufficient focus on regulatory arbitrage?

Participants:
Jürgen Fitschen (Deutsche Bank),
Martin Hellwig (MPI for Collective Goods),
Sabine Lautenschläger (European Central Bank),
Gerhard Schick (Member of German Parliament),
Michael Sommer (DGB)

Chair:
Mark Schieritz (Die Zeit)

Keynote speech
Friday,
28 February
11.45-12.30 pm

Wolfgang Schäuble,
Federal Minister of Finance

Keynote speech
Friday,
28 February
2.00-2.30 pm
Claudia Buch,
Council of Economic Experts and Halle Institute for Economic Research

Panel 3

Extending the reach of regulation beyond banks –
what should we be aiming for?
Friday,
28 February
2.30-4.00 pm

Does the current regulatory framework adequately cover the entire financial system?
What potential risks may stem from other financial intermediaries, including various forms of investment banks and insurers?
How should the shadow banking system be incorporated into the regulatory framework?

Participants:
Nikolaus von Bomhard (Munich Re),
Claudia Buch (Council of Economic Experts and Halle Institute for Economic Research),
Mark Carney (Bank of England),
Andreas Dombret (Deutsche Bundesbank),
Elke König (BaFin/Federal Financial Supervisory Authority)

Chair:
Mark Schieritz (Die Zeit)

Concluding remarks
Friday,
28 February
4.00-4.30 pm
Concluding remarks


Programme

Press release