The Future of Regulatory Reform
CEPR has just held its first conference on financial regulation - The Future of Regulatory Reform -
bringing together senior policymakers, leading academics and industry practitioners. Had this event
taken place five years ago, the attendance would have been quite different. Those invited may well have
accepted, but no doubt something would have come up. Client meetings, political briefings and PhD
defences would have suddenly needed urgent attention. And the traffic would have been just awful. But
this is 2010, and the room was packed. Even with London's underground rail service blighted by strikes,
one delegate walked for over an hour to arrive on time. As another attendee put it, regulation is now
sexy.
Why the change in attitude? A simple answer would be that the world has just been through the most
severe financial crisis since the Great Depression, and that the pain is not over. Yet this is perhaps too
straightforward. As those attending agreed, the future will be anything but.
The event's co-organisers, CEPR President Richard Portes and Patricia Jackson, partner at Ernst &
Young and board member at CEPR, argue that the timing is crucial. With the new regulatory landscape
being decided by the end of this year, there is still active debate over several areas.
For many, this crisis should not be wasted. It offers a window of opportunity that has never been so wide open. José María Roldán of the
Bank of Spain made the point that the regulatory body is by its nature static and the financial industry dynamic. For the first time though,
says Jochen Sanio, President of the German financial regulator BaFin, the bank lobbyists are outside the room. 'Now', he argues, 'is the
hour of the regulator.' Read more
A central theme of the
day was the need for
'bank resolution' - a code
of conduct for the next
time a systemically
important financial
institution (SIFI)
becomes insolvent.
According to Xavier
Freixas of Pompeu Fabra
University and CEPR,
banks should no longer
be able to hold the
government hostage.
Visit VoxEU.org
Papers and Slide Presentations
Paper: "A Safer World Financial System:
Improving the Resolution of Systemic
Institutions" Presentation: Slides
Stijn Claessens
Paper: "Banking Resolution: Lessons
from the Crisis" Presentation: Slides
Xavier Freixas
Paper: "Liquidity Regulation: The Choice
Between Liquidity Risk Levies and
Mandatory Liquidity Buffers" Javier
Suarez
Paper: "Shadow Banking" Presentation:
Slides
Tobias Adrian
Paper: "Countercyclical Capital Buffers:
A Critical Assessment of the Basel
Proposal" Presentation Slides
Rafael Repullo
Discussion: Presentation
Thomas Huertas (FSA)
Presentation: "Fair Value Accounting and
Procyclicality: Regulatory Challenges"
Presentation: Slides
Christian Laux
Discussion: Presentation
Patricia Jackson
Programme
Morning Session
Chair: Richard Portes (CEPR and London Business School)
Opening remarks
Patricia Jackson (Ernst & Young and CEPR)
Richard Portes (CEPR and London Business School)
"A Safer World Financial System: Improving the Resolution of
Systemic Institutions"
*Stijn Claessens (IMF, University of Amsterdam and CEPR)
Richard J. Herring (Wharton School, University of Pennsylvania)
Dirk Schoenmaker (Duisenberg School of Finance)
Discussion
Vicky Pryce (FTI Consulting and CEPR)
"Banking Resolution: Lessons from the Crisis"
Xavier Freixas (Universitat Pompeu Fabra and CEPR)
Discussion
Jochen Sanio (BaFin)
"Liquidity Regulation: The Choice Between Liquidity Risk Levies and
Mandatory Liquidity Buffers"
Javier Suarez (Centre for Monetary and Financial Studies, Madrid and
CEPR)
Discussion
Oliver Burkart (Committee of European Securities Regulators)
Keynote speech
José María Roldán (Banco de España)
Discussion
Oliver Burkart (Committee of European Securities Regulators)
Panel Discussion: "Lessons from the Crisis"
Chair: Patricia Jackson (Ernst & Young and CEPR)
Panellists:
Peter Praet (National Bank of Belgium)
José María Roldán (Banco de España)
Jochen Sanio (BaFin)
Carol Sergeant (Lloyds Banking Group)
Afternoon Session
Chair: Patricia Jackson (Ernst & Young and CEPR)
"Shadow Banking"
*Tobias Adrian (Federal Reserve Bank of New York)
Adam Ashcraft (Federal Reserve Bank of New York)
Hayley Boesky (Federal Reserve Bank of New York)
Zoltan Pozsar (Federal Reserve Bank of New York)
Discussion
Peter Praet (Banque Nationale de Belgique)
"Countercyclical Capital Buffers: A Critical Assessment of the Basel
Proposal"
*Rafael Repullo (Centre for Monetary and Financial Studies Madrid and
CEPR)
Jesús Saurina (Banco de España)
Carlos Trucharte (Banco de España)
Discussion
Thomas Huertas (FSA)
"Fair Value Accounting and Procyclicality: Regulatory Challenges"
Christian Laux (Vienna University of Economics and Business)
Discussion
Patricia Jackson (Ernst & Young and CEPR)
Panel discussion: "The implications of Dodd-Frank for European
Financial Regulation"
Chair: Richard Portes (CEPR and London Business School)
Panellists:
Mark Austen (Association for Financial Markets in Europe)
Benoît Coeuré (Direction générale du Trésor)
Andrew Cross (Credit Suisse)
Thomas Huertas (FSA)
Concluding remarks
Patricia Jackson (Ernst & Young and CEPR)
Richard Portes (CEPR and London Business School)
This conference is partly financed by the PEGGED Collaborative Project.
The PEGGED Collaborative Project is funded by the European Commission's 7th Framework Programme for Research. Grant Agreement no. 217559