FSC Colloquium on Resolution | 20 June 2019 in Brussels
The joint academic colloquium was held June 20, 2019 in Brussels at the premises of the Single Resolution Board. The call for papers had been addressed to senior scientists and experienced scholars with a research focus on aspects of the bank resolution framework. Purpose of the event was to bridge acacemic with policy-making expertise and to in-depth discuss challenges ahead.
FRS Financial Risk and Stability Network
Single Resolution Board
FSC Colloquium on Resolution | FRS – SRB
20 June 2019 in Brussels | 9:00 a.m. – 3:00 p.m.
jointly organised by FRS Financial Risk and Stability gGmbH and the Single Resolution Board as a pre-event to the Financial Stability Conference 2019
The Financial Stability Conference (FSC) 2019 on October 28 in Berlin is preceded by an academic colloquium on Thursday, June 20, 2019 in Brussels at the premises of the Single Resolution Board. Experienced scientists in the disciplines of economics, law, finance, banking and political economy as well as senior researchers from public authorities and EU institutions were invited to submit papers on relevant aspects of the bank resolution framework and related subjects to be considered for presentation and discussion at the colloquium in Brussels. We are looking forward to a high-quality event with essential in-depth analyses and beneficial enriching debates.
The extended submission deadline for papers ended April 24, 2019
Proposals were limited to 1.500 words.
Research questions could address various aspects of the resolution framework. They may relate but were not limited to the following terms and notions:
Recent experiences with bail-in; loss absorbing capacity; liquidity and funding in resolution; bail-in eligible instruments and their effectiveness; restructuring in resolution; rules vs. discretion – the SRB and decision making; legal, institutional and political impediments to resolution; governance, regulatory approvals and communications; implementation challenges; bail in execution; operational continuity; original policy objectives and reality.
We welcomed in particular work on following subjects:
- Experiences with failing or likely-to-fail institutions since the resolution framework in force – recent cases in member states and academic’s assessments.
- Practical dealings with resolution cases – what are most pressing legal, institutional and political implementation challenges? Meeting the original policy objectives.
- Approaches for possibly robust quantifications of the benefits of resolvability.
- Examining financial stability rationales/objections and trade-off caveats to resolution.
- Resolution processes decision making – rules vs. discretion in complex processes with interventions.
- State aide rules and recent practice in member states – EU law and institutions vs. national banking policies and insolvency proceedings.
- Legal constraints in resolution processes – member states insolvency proceedings, no-creditor-worse-off stipulation, bail-in cascade and lawsuits.
- Credibility of the resolution framework in stress situations – SRF, backstop provisions and their anchoring and legitimations.
- Role of central banks for provisioning of liquidity during and after resolution to the extent needed to ensure the success of the resolution scheme – are there limitations or constraints? If so, what are the implications for the EU resolution framework?
- Intergovernmental agreements as regards the resolution framework – detrimental for the integrity of Union law?
Submitted papers are reviewed jointly by the SRB and FRS. We will inform all proposers by April 30, 2019 about acceptances and further procedures.
Some relevant information on the purpose of the colloquium
Presentations should be short and policy-oriented, and they do not have to follow a given specific scientific methodology or approach. More important are clear conclusions relating to the existing resolution framework and its first experineces, practical relevance of results, ideally policy recommendations and crucial input to both the scientific as well as the policy debate. Derivations of empirical results and model explaining should not be the focus, we rather recommend to eschew models and equations and focus on the outcomes and policy implications when presenting. The organisers put emphasis on learning from this event.
For each presenter there will be a discussant, and we ask accepted presenters to be open to act as well as a discussant to another scientific paper. Also the discussants should be brief in their paper reviews to give adequate time for the plenary discussions with the audience where in our view shall be a focus on.
Inquiries and information requests to be directed to email@example.com
Financial Risk and Stability Network
Single Resolution Board
Material of the FSC Colloquium on Resolution:
Some of the presentations and prepared discussions of the sessions held at the colloquium are available below.
Bank Resolution Regimes and Systemic Risk
Presenter: Thorsten Beck, Cass Business School
Authors of the relating paper (not public): Thorsten Beck (Cass Business School), Deyan Radev (University of Bonn), Isabel Schnabel (University of Bonn)
Publication (on which presentation was based):
The Single Resolution Mechanism and the Single Resolution Fund: Legal aspects of the second main pillar of the Banking Union
Presenter and author: Christos Gortsos, National and Kapodistrian University of Athens
Liquidity Provision in Resolution and Post Resolution: Comments to Christos Gortos
Discussant: María Nieto, Bank of Spain
FSC Colloquium on Resolution – PROGRAM
20 June 2019 – Brussels | 9:00 – 15:00 h | Single Resolution Board
Academic colloquium ahead to the Financial Stability Conference 2019:
“EU between Regress and Progress: How to cope with National Banking Policies, Single Market Deficiencies and the unsolved Sharing Issue“
The colloquium was a precursor to the Financial Stability Conference to be held on 28 October in Berlin. Experienced scientists in the disciplines of economics, law, finance, banking and political economy as well as senior researchers from public authorities and EU institutions were invited to submit papers on relevant aspects of the bank resolution framework and related subjects to present and discuss them at the colloquium. Three papes had been selected for presentation and discussion. Participation in the joint colloquium was by invitation only.
08:45 Check-in and Coffee
09:10 Welcome and Opening
Martin Aehling, Director, FRS Financial Risk and Stability Network
Elke König, Chair, Single Resolution Board
9:35 Session I
Liquidity in Resolution under the Framework governing the Single Resolution Mechanism and the Single Resolution Fund
Presenter: Christos Gortsos, Professor of Public Economic Law, National and Kapodistrian University of Athens
Discussant: Maria Nieto, Senior Advisor, Bank of Spain
Chair: Gaetan Viallard, Head of Unit, Single Resolution Board
10:30 Coffee Break
11:00 Session II
The new EU Framework for Banking Crisis Management: Rules versus Discretion
Presenter: Concetta Brescia Morra, Professor of Economic Law, University of Roma Tre
Discussant: Donato Messineo, Legal Counsel, Bank of Italy
Chair: Nadège Jassaud, Head of Unit, Single Resolution Board
11:55 Session III
Bank Resolution Regimes and Systemic Risk
Presenter: Thorsten Beck, Professor of Banking and Finance, Cass Business School
Discussant: Bart Joosen, Professor of Financial Law, VU University Amsterdam
Chair: Marc Roovers, Director Resolution, De Nederlandsche Bank
12:50 Light Lunch
13:45 Panel Discussion
Looking forward: How to tackle Challenges to Resolution and Impediments to Practice
Discussant: Andrew Lodge, Head of Resolution Division, Bank of England
Discussant: Christian Stiefmüller, Senior Research and Advocacy Advisor, Finance Watch
Discussant: Emiliano Tornese, Deputy Head Resolution and Deposit Insurance, European Commission
Discussant: Tsvetomira Tsenova, Senior Economics Adviser, Experian
Discussant: Ruth Walters, Senior Advisor, Bank for International Settlements
Moderator: Sebastiano Laviola, Board Member, Single Resolution Board
14:50 Wrap up and Closing
Samy Harraz, Head of Policy Coordination and International Relations, Single Resolution Board
PRESENTATIONS, DISCUSSIONS, VIEWS EXCHANGE AND NETWORK BUILDING
FSC Colloquium on Resolution participation information:
Pls note: The colloquium is a closed event
Pls note: Participation is by invitation only
The FSC Colloquium on Resolution was a closed, non-public event. It aimed at bridging profound academic research and theory with the practice of banking resolution. The organisers reserved the right to publish photos and documentation of this event in print and online formats. Those who were invited and participated in the colloquium were requested to consent that they may appear in a print and/or online documentation.