Location: De Nederlandsche Bank (DNB), Amsterdam
A common European regulatory system was set up at extraordinary speed in the last years. In this transitional context, analytical insight is needed to guide the enforcement process. A proper measurement of capital requirements is a major challenge. The experience of the crisis has taught that static rules will be progressively eroded by market behaviour. Prudential policy must thus recognise and track how intermediaries and markets adapt and evolve over time. This insight is required to act preventively on endogenous risk creation, while avoiding excessive rigidities.
A central question is how new capital norms will affect the interaction of banking and capital markets along the credit cycle. The scale of new regulation implies a significant potential for spillovers across sectors and asset markets, and raises issues on the coordination between micro and macroprudential policy.
The conference is a joint initiative of CEPR, De Nederlandsche Bank and the CIFRA research centre at the University of Amsterdam, and is part of the CEPR Financial Regulation Initiative (FRI). The programme seeks closer communication between policymakers, market participants and researchers on concrete themes of policy relevance.
• Measuring asset risk over the cycle
• Correlated risks in asset and funding choices
• Measuring the quality of capital and bail in capacity
• Optimal design of going-concern contingent capital
• Prevention versus risk absorption
• Asset encumbrance and run risk
• Allocation of risk bearing capacity for bail-inable debt
• Unintended consequences of rules on asset market liquidity.
Franklin Allen (Imperial College Business School and CEPR)
Elena Carletti (Bocconi University and CEPR)
Enrico Perotti (University of Amsterdam and CEPR)
José -Luis Peydró (Universitat Pompeu Fabra and CEPR)
Rafael Repullo (CEMFI and CEPR)
Sascha Steffen (European School of Management and Technology)
David Thesmar (HEC Paris and CEPR)
Tanju Yorulmazer (University of Amsterdam)
Peter Wierts (De Nederlandsche Bank)