RESEARCH WORKSHOP 2020

FRS Research Workshop | 6 November 2020 | online-event

The FRS Research Workshop 2020 was held on 6 November as a virtual event. Researchers and scholars in the EU and beyond were invited to submit policy contribution proposals on aspects of four thematic clusters. We reviewed the submitted proposals and selected the most promising for drafting policy contributions, presentation and discussion at the workshop. The programme is available below on this page.

The workshop was an open event bringing together senior and junior scientists and researchers with experts from authorities and institutions, citizens and industry experts. The motto is ‘science to policy’ and the format encourages participants to take part in current debates.

workshop organiser 2020
call for contributions 2020
workshop program 2020
workshop organiser 2020
organiser:
Financial Risk and Stability Network
call for contributions 2020

FSC Research Workshop 2020
6 November 2020  |  9:00 – 16:00 h  |  Berlin

UPDATE: Call for Policy Contribution Proposals 2020

Junior and senior scientists and scholars – including PhD candidates, early stage and PhD researchers – in the disciplines of economics, law, finance, banking and political economy as well as researchers from public authorities, central banks, institutions and civil organisations are invited to signal their interest and submit policy contribution proposals to draft contributions on research questions of envisaged conference topics and aspects thereof as well as topical issues in the context of the coronavirus crisis.

Step I
Extended proposal deadline for policy contribution ideas/sketches: 28 July 2020

Step II
Review of all proposals and information on acceptances: beginning August 2020

Step III
Submission deadline for drafted policy contributions: 24 September 2020

Step I

Proposals for policy contribution subjects / research ideas could address various aspects of the following four thematic clusters (see below various topics and aspects issues thereof):

  1. Implications of the Corona crisis on financial stability and the financial system
  2. Climate change, the transition to a low-carbon economy and sustainable finance
  3. Resilience of financial institutions and crisis management frameworks in the EU
  4. ECB strategy review and the formulation of policies in the light of changing roles

For topical reasons we want to set this year a focus on the economic policy, regulatory and supervisory, fiscal and monetary policy measures in the EU and member states in reaction to the Covid-19 pandemic as well as on various dimensions of the coronavirus crisis effects on the financial system and the implications of various measures taken at different policy levels relating to financial stability and financial institutions in the EU. Considerations about effects and interconnections to above bullets 2., 3. and 4. are mostly appreciated. A second focus shall be on climate change risks in connection with bullets 3. and 4.

A compilation of links and information sources relating to Covid-19 measures and reflections can be found via ‘posts’ on this website: ‘Corona Pandemic Responses – Compilation of information materials and sources‘.

Proposals may relate to a broad bundle of terms and notions as regards the above thematic clusters, and we are also open to unconventional ideas. We welcome in particular preliminary and forward looking contribution proposals suggesting options and conclusions on the basis of a clear analysis and reasoning as well as personal assessments and viewpoints at a draft stage to be discussed in-depth at the workshop.

Following terms and notins present for each cluster various thematic hints and suggestions which could be dealt with, either specific aspects and research questions or reasonably combined aspects:

  1. Implications of the Corona crisis on financial stability, financial system and Euro area
    through which channels systematic risks might be triggered; how would this impact the financial sector; credit performance, alleviations for creditors and effects on NPL-rates; effects of temporary banks’ capital reliefs; long-term effects on financial stability, debt and resilience; effects on financial regulation and supervision (calls for loosening rules / standards); redistributive effects (inequality question); side and adverse effects of ECB’s assistance and asset purchase programmes; financial relief programs and macroeconomic policy responses: ESM credit facilities, ‚Corona‘ bonds for the Euro-area, renewed discussions about a Euro-area treasury budget; Euro area member states joint expenditures and common fiscal anti-crisis actions; assessment of fiscal options to deal with the long-term effects of the crisis; Italy, other countries and the Euro area on the verge of a long and deep recession; sharp rising debt levels and sovereign debt crisis measures; institutional, European (burden balancing) and societal distribution of sovereign and fiscal costs.
  2. Climate change, the transition to a low-carbon economy and sustainable finance
    how to handle and manage climate related risks; how to incentive authorities and financial institutions acting for the necessary transitions: role of central banks, central banks’ portfolios and liquidity investments; green bonds; green funds and green washing; taxonomy and ESG factors; question of stricter guidance by regulatory and supervisory measures as regards bank business modells; question of bold rules or guidelines for financial institutions in dealing with climate risks in the transition period; role of banks, credit and lending in achieving sustainable finance objectives; financial stability and systemic risks as well as their implications for supervisiory interventions and financial markets policy considerations (see e.g. ‚green swan‘ publication BIS).
  3. Resilience of financial institutions and crisis management frameworks in the EU
    including banking resolution on the backdrop of existing (debt, zero or near-zero interest rates environment for a long time, economic downturns, national economic, fiscal and banking interests in the EU, too-big-, too-complex-, too-political-to-fail issues) and incoming challenges (climate change risks, impact of Corona crisis and related measures, trade conflicts and deglobalisation, regulatory arbitrage risks with Brexit); which measures, reforms, regulations and institutional designs could enhance banks’ resilience and the existing crisis management framework on the backdrop of lessens to be learnt also from current Corona crisis impacts; which policy proposals and projects shall be revived and prioritised to avoid a renewed sovereign debt crisis in the Euro area and to mitigate the state-bank nexus; how to adopt Banking Union settings and missings to new assessments and considerations.
  4. ECB strategy review and the formulation of policies in the light of changing roles
    (Lagarde: “we will turn each and every stone without preconceived landing zone”): various roles and mandates; discussion of ECB’s climate change risk policies and strategy; role and initiatives of central banks as regards a smooth transition to a low-carbon economy; transparency, governance and communications; conflicting aims between monetary policy decisions/strategies and financial stability considerations; scope of actions and room for manoeuvre of ECB’s monetary policies; effectiveness and relevance of central banks‘ monetary policy decisions and actions in current and future economic cycles (long-term low interest); joint ECB cooperation with NCAs, national central banks and supervisory decisios making; coordination with Commission, SRB and national resolution authorities on banking resolution decisions (failing or likely to fail); trade-offs and conflicting functions/mandates within the ECB as regards banking supervision; discussion about the direct supervision of all (also small) banks at the ECB; legal issues and lacking harmonisation at European and member states levels.

→  Policy contribution proposals/sketches to be emailed by Tuesday, 28 July 2020 to: workshop@financial-stability.org

We do not expect drafted or written poliy contributions by this deadline, but a proposal with a clear subject outline of max. 1.500 words. All proposed research ideas and subject proposals will be reviewed and considered for drafting contributions, presentation at the workshop, discussion and publication.

Step II

→ We will inform all proposers beginning August 2020 on acceptances and the further procedure.

Step III

We ask to work out accepted research proposals and to draft the policy contributions until fall 2020. The policy contributions should be short and policy-oriented, and they do not have to follow any given specific scientific methodology or approach. More important are policy-relevance, comprehensibility as well as a clear and plausible structure. Emphasis lies on conclusions, practical relevance of results, ideally policy recommendations and 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 to focus on the outcomes and policy implications. The policy contributions have to be finalised and send to the organiser by 24 September to give time for review by discussants before the workshop date.

Information materials, links and online coverage of the Corona-crisis are listed on our site >> here.

→  Accepted proposals shall be worked out until fall and the drafted policy contributions have to be emailed by Thursday 24 September 2020 to: workshop@financial-stability.org

Important information on the purpose of the workshop and about the task:

We ask for policy contributions which is a difference to academic papers. The task is to bring a policy contribution to the ground, means to draft it in a non-technical wording and understandable for a wider public. Essential is to eschew models and equations, focusing instead on lines of thoughts, reasonings and conclusions or policy options and recommendations. We welcome viewpoints and opinions based on a thorough and thought out argumentation. Thus, the workshop is as well intended as an experiment to bring researchers closer to policy debates. To sum up, the conributions should be brief and written in a nontechnical language, aimed at a broad audience interested in policy issues, presented and published to elicit comment and further policy debate.

As regards subjects and research questions of policy contributions there are no specifications or preferences from the organiser. Any specific aspect relating to the set thematic clusters and topics can be accepted. We do not see problems with potential thematic overlappings. In the contrary, it might be fruitful to have contributions on quite similar aspects for an enriching discussion.

There are no detailed specifications as regards format as well: just to edit subject, reasoning and rationale in a clear and logical way, be precise and leave the unnecessary and redundant aside. Length: better short than lengthy; 5 to 8 pages would be best and appropriate, and we ask to not exceed the max. of 10 pages.

For each presenter there shall be a discussant, and we ask accepted presenters to be open to act as a discussant to another policy contribution. The focus shall be in our view on the plenary discussions with the audience. Our intention and aim is that all participants are learning from the workshop, gain new insights and get manyfold ideas for future work. We also intend to discuss relevant workshop results and proceedings with high-level policymakers at the Financial Stability Conference in fall 2021.

Questions to be directed to: workshop@financial-stability.org

The research workshop will be held as a public virtual (online) event.

The organiser
Financial Risk and Stability Network
___________________________________________

Martin Aehling
Director
FRS Financial Risk and Stability gGmbH

workshop program 2020

FRS Research Workshop 2020 – PROGRAMME
6 Nov. 2020  |  virtual live event  |  13:00 – 17:45 h  CET

Policy-oriented workshop to address topical aspects in the given 4 thematic clusters of the call for policy contributions.

The workshop discussed relevant aspects in the context of the corona crisis and further topical issues. The challenge was to give a brief and focused policy-oriented presentation to a mixed audience in a clear and structured way. Presenters were encouraged to focus on reasoning, conclusions and policy options in a way that non-academics understand. A general request was to refrain from model explaining, but to highlight policy-oriented aspects. Thus, the workshop was as well intended to bring scientists closer to policy debates.

Download Programme-PDF

Programme schedule:

13:00   Welcome
Martin Aehling, Director, Financial Risk and Stability Network

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13:10   Session  I
Presentation
Protecting financial stability: Lessons from the Coronavirus pandemic
Steven L. Schwarcz, Stanley A. Star Professor of Law and Business, Duke University School of Law
Howell E. Jackson, Professor of Law, Harvard Law School
>  Policy paper for download
Discussion
13:25   Discussant:  Arnoud Boot, Professor of Corporate Finance and Financial Markets, University of Amsterdam
13:35   Q&A virtual audience
13:55   END of the session

Moderation:  Nicolas Véron, Senior Fellow, Bruegel and Peterson Institute for International Economics

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14:05   Session  II
Impulse I
The Corona crisis and the stability of the European banking sector: A repeat of the great financial crisis?
Frank Eich, External Advisor, Bertelsmann Stiftung
Philipp Schulz, Junior Project Manager, Bertelsmann Stiftung
>  Publication for download
Impulse II
Banking crisis management in the European Union amidst the pandemic crisis
Christos Gortsos, Professor of Public Economic Law, National and Kapodistrian University of Athens
>  Publication for download
>  Publication for download
>  Publication for download
Discussion
14:25   Discussion / Q&A virtual audience
14:50   END of the session

Moderation:  Andrew Metrick, Janet L. Yellen Professor of Finance and Management, Yale School of Management

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15:00   Session  III
Presentation
Unlocking the potential of green securitization
Christy Petit, Research Associate, Florence School of Banking and Finance
> Policy paper for download
Discussion
15:15   Discussant:  Christian M. Stiefmüller, Senior Research and Advocacy Advisor, Finance Watch
15:25   Q&A virtual audience
15:45   END of the session

Moderation:  Roger Silvers, Assistant Professor, David Eccles School of Business, University of Utah

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15:55   Session  IV
Presentation
Implementing a European bail-in regime: Do BRRD & SRM-R effectively eliminate implicit government guarantees in the European banking sector? An empirical analysis
Sascha Hahn, Doctoral Student, WHU – Otto Beisheim School of Management
Axel Wieandt, Honorary Professor, WHU – Otto Beisheim School of Management
> Policy paper for download
Discussion
16:10   Discussant:  Bart Joosen, Professor of Financial Supervision Law, VU University Amsterdam
16:20   Q&A virtual audience
16:40   END of the session

Moderation:  Pedro Machado, Director of Resolution Planning and Decisions, Single Resolution Board

___________________________________________

16:50   Session  V
Presentation
Three aspects of systemic risk – A comparative approach for CEE
Ewa Dziwok, Associate Professor, Department of Applied Mathematics, University of Economics in Katowice
Marta Karas, PhD, Department of Financial Investment and Risk Management, Wrocław University of Economics and Business
>  Policy paper for download
Discussion
17:05   Discussant:  Deyan Radev, Assistant Professor, Faculty of Economics and Business Administration, Sofia University
17:15   Q&A virtual audience
17:35   END of the session

Moderation:  Tamarah Shakir, Systemic Risk and Financial Institutions Division, European Central Bank

___________________________________________

17:35   Round up
Stefan Janßen, Professor for Corporate Finance and Banking, Jade University of Applied Sciences

17:45   Workshop END

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17:45   Networking and Exchange
We offered the possibility of an after workshop networking and exchange for all interested participants and attendees. The link and the password for this online gathering room was shared during the workshop via the Q&A-tool.

18:30   END

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FUNDING 2020

We would appreciate if you could support our non-profit organisation with a donation. If you find our activities senseful and relevant please contact us via info@financial-stability.org and we will send you the bank account details. Donation receipts can be given to donors from Germany.
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