Financial Stability and Macroprudential Policy

Workshop, Oslo, 16 August 2016

Norges Bank hosted a workshop on the topic of “Financial Stability and Macroprudential Policy”, a day ahead of the EFA conference in Oslo. The objective of this workshop was to bring together academics and policymakers to discuss current issues and challenges in financial stability and regulation. The workshop was organised in cooperation with the European System of Central Banks and the Central Bank Research Association.

After the recent global financial crisis, it has been widely accepted that conventional, microprudential policies that aim to maintain the soundness of individual financial institutions are not sufficient to safeguard the stability of the financial system. Instead, policy makers need to establish a system‐level perspective, focus on risks that may have systemic impact and adopt properly designed macroprudential policies and instruments. Against this background, we welcomed submissions related to topics such as:

  • Financial instability and sources of systemic risk
  • Systemic risk indicators and measurements, early warning systems, stress testing
  • Financial market infrastructure and financial stability
  • Instruments and tools to address systemic risk
  • The cost and benefit of financial regulation
  • The interaction between banking crises and recessions
  • Macroprudential monetary policy

Papers presented at the workshop:

Ricardo Correra, Federal Reserve Board: "International banking and cross-border effects of regulation: Lessons from the United States" (w/ Jose Berrospide, Linda Goldberg and Friederike Niepmann)

Maximilian Eber, Harvard University: "How do banks adjust to stricter supervision?" (w/ Camelia Minoiu)

Fergal McCann, Central Bank of Ireland: "Credit conditions, macroprudential policy and house prices" (w/ Robert Kelly and Conor O'Toole)

Matthew Pritsker, Federal Reserve Bank of Boston: "Choosing stress scenarios for systemic risk through dimension reduction"

Diane Pierret, University of Lausanne: "Lender of last resort versus buyer of last resort – The impact of the European Central Bank actions on the bank-sovereign Nexus" (w/ Viral Acharya and Sascha Steffen)

Robert Smith, University College London: "News and narratives in financial systems: Exploiting big data for systemic risk assessment" (w/ Rickard Nyman, David Gregory, Sujit Kapadia, Paul Ormerod and David Tuckett)

Anton Korinek, Johns Hopkins University: "Risk-taking dynamics and financial stability" (w/ Martin Nowak)

Kalin Nikolov, European Central Bank: "Equity versus bail-in debt in banking: An agency perspective" (w/ Caterina Mendicino and Javier Suarez)

John C. Driscoll, Federal Reserve Board: "Bank liquidity and capital regulation in general equilibrium" (w/ Francisco Covas)

Sergio Mayordomo, Banco de España: "Keeping it personal" or "getting real"? On the drives and effectiveness of personal versus real loan guarantees" (w/ Antonio Moreno, Steven Ongena and María Rodríguez-Moreno)

Published 31 December 2015 16:08
Edited 9 September 2016 12:27

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Scientific committee:

  • Tobias Adrian (Federal Reserve Bank of New York)
  • Farooq Akram (Norges Bank)
  • Wilko Bolt (De Nederlandsche Bank)
  • Steven Ongena (University of Zurich)
  • José‐Luis Peydró (Universitat Pompeu Fabra)
  • Kasper Roszbach (Sveriges Riksbank)

Local organising committee:

Jin Cao and Sigurd M. Galaasen