FRSN is an independent initiative focusing on regulation, financial stability and financial sector reforms in the EU. It contributes to the provision of information and views exchange on these issues via its activities, financial-stability.org and events. The initiative thereby presents a basis and starting point for dialog, networking and cooperation on these issues.
FRSN stimulates debates and opinion making on regulation and financial sector reforms amongst scientists, politicians, regulators, industry experts and interested public. The initiative will thereby intensify the discussion on an adequate regulation of the financial sector. It provides opportunities and offers a framework for all those who are interested in. Future activities shall be determined with the contribution or cooperation of those others. The initiative is also open to and envisaging institutional cooperations.
Independence, transparency as well as a critical and constructive perspective are core values of the Financial Risk and Stability Network (see below). The understanding is as a complementary to institutions and organisations which have a societal-, dialog- and research-driven approach.
For public debate and an active exchange of views the initiative started organising events in 2012. The events shall be expanded in the forthcoming years, fostering partnerships and providing an impact to the discussions on regulatory reforms.
Interested persons and institutions can participate in the network if they find that objectives and mission of the initiative are valuable and shall be supported. For more information see “network”.
When the network develops well, we will install an advisory board to accompany the agenda setting and future activities of the initiative. Likewise, we intend to give FRSN an appropriate organisational and legal form in due time. This will be dependent on the availability of funding.
Initiator of the FRSN has been Martin Aehling, with some moral support from a few scientists. Martin Aehling operates the platform, organises the events and coordinates the activities.
Most of the funding and work comes from Martin Aehling. The initiative currently operates at a low level because of limited resources. The development of the initiative and activities should be funded in future by grants, donations and contributions from different sources.
In the medium term we seek to ensure an institutional funding which does not affect the principles and independence of FRSN. For this, we envisage setting up an appropriate legal and organisational form in due time.
Current work can be supported via donor- and sponsorships. We also are open to institutional cooperations.
A sound financial sector is key for Europe, its citizans and economic welfare. We are still far from this. As the last years have shown, the financial sector paradigm is due for changes, both to mitigate future crises as well as to reorient financial institutions toward activities that benefit economy and society at large.
Crisis and moral hazard will not vanish in the future. Equally, financial stability is never a given condition. It is only achieved by rules, good regulation and oversight. We need to improve regulation, enhance governance and redirect responsibility to those who take the risks. And we have to ensure that underlying causes of risk build-up and vulnerabilities are finally addressed.
The initiative encourages a new and for the society positive role of the financial sector. Some of its activities do not serve the economy and the society at large. To fulfill its vital functions and to create a better financial system more involvement from societal groups and academia is necessary. Likewise, we have to carefully look for signs of risks and call for different views to be heard.
Shaping policies which respect the needs of the economy, the interests of society and the public in general is therefore an essential and ongoing challenge. For this, we need a public debate on regulatory initiatives. Good governance and adequate financial regulation can only come from having this ongoing debate. For this, we will contribute.
Principles see below
Independence, transparency as well as a critical and constructive perspective, supporting the notion of public interest, are core values of the Financial Risk and Stability Network. The understanding is as a complementary to institutions and organisations which have a societal-, dialog- and research-driven approach.
Following principles are standing for the general orientation and the activities of the initiative:
Independence is the guiding princple of FRSN. The network is not associated with or related to a political party, a school of thought, a company, an industry, an association or any other organisation.
The FRSN pursues a high level of transparency. Information on funding and sponsorships are made available. It is an open network for all those who find the objectives relevant. Orientation, agenda and activities are public and transparent.
- Free access
The information on financial-stability.org is public and at no charge for users. Contributions and comments to the content are appreciated as well as new posts and suggestions for new content.
Participation in the network is welcomed and free for those who find that objectives and mission of the initiative are valuable and shall be supported. A certain level of responsiveness is expected.
- Critical and constructive perspective
The initiative has a critical and constructive perspective, supporting the notion of public interest. Aim is to contribute to information and open discussion, thereby providing an impact to the debates on financial reforms and stability.
FRSN emphasises quality and clearness of activities and own organisation. Guidlines are professionalism and fairness.
Participants and cooperation partners shall not use the network for own interests which could harm the credibility or the general orientation of the initiative.
Objectives see below
FRSN supports and is aiming at:
- regaining and ensuring a diverse and resilient financial sector across the EU
- effective regulation of the financial sector and limiting harmful activities
- reducing the financialisation of society and the dimension of the financial sector
- encouraging a new and positive role of the financial sector serving real needs
- strengthening the vital functions of the financial sector for sustanaible growth
- reorientation the allocation of capital in useful, productive investments
- reducing moral hazard and implicit subsidies thereby enhancing competition
- restoring effective risk cultures and ethical behaviour in financial institutions
- ending too-big-to-fail and too-political-to-fail by an independent resolution regime
- limiting speculation with derivatives, commodities and high frequency trading
go up to mission