MISSION STATEMENT

MOTIVATION  –  PRINCIPLES  –  OBJECTIVES

FRS Financial Risk and Stability gGmbH is an independent, recognised non-profit organisation ruled by German Law. It builts on the activities of the initiative Financial Risk and Stability Network as a successor organisation, and keeps its logo and name. The thematic focus is on regulation, financial stability and financial sector reforms in the EU. The organisation contributes to the provision of information and views exchange on these issues via its activities, its network platform and events. It thereby presents a basis and starting point for dialogue, research and cooperation on these issues.

How can society, scientists and the general public have a bigger say in the debates on financial sector reforms? This question stays of significant importance in rebalancing risks and benefits, reorient the financial sector toward activities that benefit society at large as well as to better align financial regulation with society’s goals. That is what FRS is heading at. Policy makers continue to face constraints including unfavorable structures of political economy, limited knowledge, lobbying powers and political opposition to advance financial reforms. Both, regulatory governance and policy making have to be strengthened to face regulatory and policy capture, national interests and regulatory arbitrage. Representation and governance is largely a political economy question – science and civil society have to get involved more.

FRS therefore stimulates debates and opinion making on regulation and financial sector reforms amongst scientists, politicians, regulators, industry experts and the interested public. The organisation will thereby intensify the discussion on an adequate regulation of the financial sector. It encourages research on these issues, disseminates results of its activities and takes part in the debates. FRS provides opportunities and offers a framework for all those who are interested in. The non-profit organisation is also open to and envisaging institutional cooperations as well as project collaborations as regards interdisciplinary research, views exchange and events.

MOTIVATION

A sound financial sector is key for Europe, its citizans and economic welfare. We are still far from this. The last years have clearly shown the centrality of the financial system and its destabilising risks. The financial sector cannot self-stabilise, and therefore its 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 addressed in adequate ways.

FRS 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 focused research, open exchange and serious public discussions on financial reform initiatives on a broader basis. Good governance and adequate regulation can only come from having this ongoing debate. For this, we will contribute.

PRINCIPLES

Independence, transparency as well as a critical and constructive perspective, supporting the notion of public interest, are core values of the non-profit organisation ‘FRS Financial Risk and Stability gGmbH’. The understanding is as a complementary scientific based and policy oriented organisation to research institutions and organisations. FRS stimulates research and opinion making, engages in education, advances the policy debate, and brings together the concerned stakeholders in open exchange and debate formats. The approach is dialogue- and research driven, also encouraging science in more vigorously addressing policy issues.

Following principles are standing for the general orientation and activities of FRS:

OBJECTIVES

From a policy perspective FRS supports and is aiming at:
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