Banking and Financial Intermediation: Frictions, Regulation and Optimal Design

Norges Bank hosts the conference "Banking and Financial Intermediation: Frictions, Regulation and Optimal Design", October 9th - 10th 2015.

There are four general topics we will be pursuing: (1) Optimal Financial Design and Regulation, (2) Financial Industrial Organization, (3) Financial Interconnections, and (4) Financial Instability. The set of papers have much overlap among these areas. At the end of each session there will be a general discussion and brainstorming, where people can talk about open questions, direction for future research etc. After lunch the first day there will be a policy forum, where we will be discussing current issues in banking regulation.

Program

Friday October 9

08:15 - 08:50: Registration and entry

09:00 - 09:10 Welcome Speech

Jon Nicolaisen (Deputy Governor, Norges Bank)

09:10 - 11:00 Financial Instability

Rafael Repullo (CEMFI)
Search for Yield

Ali Hortaçsu (University of Chicago)
Deposit Competition and Financial Fragility: Evidence from the U.S. Banking Sector

11:00 - 11:20 Break

11:20 - 13:20 Optimal Financial Design and Regulation

Saki Bigio (UCLA)
Bank Asset Choice and Liability Design

Douglas Diamond (University of Chicago Booth School of Business)
Liquidity Requirements, liquidity choice, and financial stability

13:20 - 14:30 Lunch

14:30 - 15:40 Policy discussion

Moderator: Ida Wolden Bache (Executive Director, Financial Stability Norges Bank)

Panel: Skander Van der Heuvel (Federal Reserve Board of Governors), Carmelo Salleo (European Central Bank), Kjetil Storesletten (University of Oslo/Norges Bank Executive Board).

15:40 - 16:00 Break

16:00 - 18:00 Financial Interconnections I

Will Gornall (University of British Columbia)
Financing as a Supply Chain: The Capital Structure of Banks and Borrowers

Erik von Schedvin (Sveriges Riksbank)
Curbing Shocks to Corporate Liquidity: The Role of Trade Credit

Saturday October 10

08:45 - 09:15 Re-registration and entry

09:15 - 11:15 Optimal Financial Design

Benjamin Lester (Federal Reserve Bank of Philadelphia)
Screening and Adverse Selection in Frictional Markets

Robert Townsend (MIT)
Spatial Competition among Financial Service Providers and Optimal Contract Design

11:15 - 11:30 Break

11:30 - 13:30 Financial Interconnections II

Gadi Barlevy (Federal Reserve Bank of Chicago)
Mandatory Disclosure and Financial Contagion

Briana Chang (University of Wisconsin-Madison)
Endogenous Market Making and Network Formation

13:30 - 14:30 Lunch

14:30 - 16:30 Financial Industrial Organization

Victor Aguirregabiria (University of Toronto)
The Geographic Flow of Bank Liquidity Within and Between Branch Networks

Dean Corbae (University of Wisconsin-Madison)
Capital and Liquidity Requirements in a Quantitative Model of Banking Industry Dynamics

Published 23 September 2015 13:00

Organizing committee

  • Jin Cao (Norges Bank Research)
  • Sigurd Galaasen (Norges Bank Research)
  • Alfonso Irarrazabal (BI Norwegian Business School).

Scientific advisors

  • Robert Townsend (MIT)
  • Dean Corbae (University of Wisconsin-Madison).