How to fix the Deficiencies in the EU Financial System? Bank-State-Nexus, Business Models and the missing Level Playing Field

High level joint conference with a most topical program in Berlin. Following topics have been elaborated and discussed:

  • limiting sovereign bonds exposure,
  • banks´ business models and profitability,
  • resolvability and bail-in instruments,
  • common EU deposit insurance scheme.

The conference has been organised and coordinated by Financial Risk and Stability Network. Scientific co-organisers were ESMT Berlin, DIW Berlin, Bruegel and Jacques Delors Institut Berlin.

→  Program
→  Speakers
→  Report

08:15  Check-in



09:00  Opening
Martin Aehling, Head, Financial Risk and Stability Network


09:15  Address
Matthias Kollatz-Ahnen, Senator for Finance, Berlin


09:30  Opening Speech
Capital, Accountability and Courage

Robert Jenkins, Adjunct Professor of Finance, London Business School, and Senior Fellow, Better Markets


10:10  Panel Discussion I
Limiting Sovereign Bonds Exposure:
Feasibility, Effects and Implications

–   Easier said than done: The political Dispute on „Equitising“ Sovereigns
–   What would be the Implications of Risk Weights and Exposure Limits?
–   How to design an appropriate Regime and shape a transitional Period?
–   What would be the Effects on Public Debt, Markets and Banks‘ Viability?

Claudia M. Buch, Vice President, Deutsche Bundesbank
Mathias Dewatripont
, Executive Director, National Bank of Belgium
Dietrich Domanski
, Head of Policy Analysis, Bank for International Settlements
Roberto Gualtieri, European Parliament, Chair of ECON Committee, Member S&D
Erik F. Nielsen, Group Chief Economist and Global Head of CIB Research, UniCredit
Moderation: Jörg Rocholl, President, ESMT Berlin

11:20    Coffee


11:50  Panel Discussion II
Business Models and Banks‘ Stability:
How to enhance Banks´ Resilience?

–   State of Play: Current Risks, legacy Issues and NPL in the EU Banking Sector
–   SREP and supervisory Transparency: How to better address Weaknessess?
–   Leverage Ratio: A Counter Check for the flawed Concept of Risk Weights?
–   Uneasy Interdependencies: ECB Liquidity, Funding Structures and Stability

Elena Carletti, Professor of Finance, Bocconi University
Klaus Düllmann
, Head of SSM Risk Analysis Division, DG Microprudential Supervision IV, European Central Bank
Santiago Fernández de Lis
, Head of Financial Systems and Regulation, BBVA Research
Piers Haben, Director Oversight, European Banking Authority
Constantin Sobiella, Partner, d-fine
Moderation: Dirk Schoenmaker, Senior Fellow, Bruegel


13:00  Lunch


14:00  Keynote
Finance: Trade-offs among Stability, Inclusiveness and Growth?

Catherine L. Mann, Chief Economist and Head of the Economics Department, OECD


14:45  Panel Discussion III
How to tackle weak and TBTF Banks?
Enabling Resolvability and Bail-in

–   How to decide on whether fragile Banks should be capitalised or resolved?
–   Challenges to Implementation: Policy and a ponderous Bail-in Mechanism
–   Cooperation, unfeasible Living Wills and Plan Execution: How to get along?
–   Bail-in of eligible Bonds: How to avoid Market Contagion for other Banks?

Andrew Gracie, Executive Director, Resolution Directorate, Bank of England
Dominique Laboureix, Board Member and Director Resolution Planning and Decisions, Single Resolution Board
Sven Schelo
, Partner, Linklaters
Mark Venus, Head of Recovery and Resolution Planning, BNP Paribas
David Walker, Secretary General, International Association of Deposit Insurers
Moderation: Isabel Schnabel, Professor of Financial Economics, University of Bonn

16:00    Coffee


16:30  Panel Discussion IV
A Level Playing Field and EU-wide Deposit Insurance:
Mission impossible?

–   „Good“ Banks and „Bad“ Banks in the EU: Why is a Cleaning-up still missing?
–   How could the EU Banking System be changed to a fairer Level Playing Field?
–   Deleveraging and Risks Depression: Preconditions for introducing EDIS?
–   Completing the Banking Union: Is the Fear of a redistributive Scheme justified?

Sylvie Goulard, European Parliament, Member of ECON, Member ALDE
Levin Holle, Director General Financial Markets Policy, German Federal Ministry of Finance
Gerhard Schick, Member Deutscher Bundestag, Bündnis 90/Die Grünen
Emiliano Tornese
, Deputy Head, Resolution and Crisis Management Unit, European Commission
Vincenzo La Via, Director General of the Treasury, Italian Ministry of Economy and Finance
Moderation: Henrik Enderlein, Director, Jacques Delors Institut Berlin, and Professor of Political Economy, Hertie School of Governance


17:50   Closing
Martin Aehling, Head, Financial Risk and Stability Network

18:00   Get together