2019 Financial Stability Conference: Financial Stability: Risks, Resilience, and Policy
Financial Stability: Risks, Resilience, and Policy
1455 East 6th Street
Cleveland, OH 44114
Organized by the Federal Reserve Bank of Cleveland and the Office of Financial Research
The Federal Reserve Bank of Cleveland and the Office of Financial Research invite the submission of research and policy-oriented papers for the 2019 Financial Stability Conference to be held November 21–22, 2019, at the Federal Reserve Bank of Cleveland.
Post-financial-crisis debate has focused on identifying risks to financial stability and developing appropriate policy tools to enhance the resilience of financial markets and institutions to future systemic shocks. This conference will advance this debate by spotlighting research on potential financial stability risks facing financial markets and institutions, sources of resiliency in the financial system, and the adequacy of regulatory and supervisory policy tools to monitor and address risks. Topics include the effects of macroprudential and monetary policy on financial stability, regulatory challenges of technological advances on financial markets and financial institutions, and systemic risks and risk mitigants associated with nonbank financial institutions.
To develop these themes, the conference will bring together a mix of policymakers, market participants, and researchers in two types of sessions:
- Policy Discussions
These sessions will include keynote addresses and panel discussions in which participants from industry, regulatory agencies, and academia can share their insights.
- Research Forums
These forums will follow the format of an academic workshop and include sessions to discuss submitted papers.
We welcome submissions of research on topics related to potential financial stability risks facing financial markets and institutions, sources of financial system resilience, and related public policy. Conference topics include but are not limited to the following:
- The Effects of Macroprudential and Monetary Policies on Financial Stability
- Resilience versus dynamic tools
- Interactions between macroprudential and monetary policy
- Data needs for policy tools
- Advancements in regulatory technologies
- Lessons from the international experience
- Policy coordination with divided responsibility
- Nonstandard policies (negative rates, quantitative easing, and so on)
Post-financial-crisis reforms have provided regulators with macroprudential tools aimed at not only preventing future crises but also limiting their impact. Have these tools proved effective? What should be adjusted and what should be eliminated? How do these tools trade resilience for growth? How do emerging technologies aid or hinder regulatory efforts? Has the international experience revealed insights into best practices? What challenges do coordination amongst regulators around the world pose to supervisory and macroprudential policies in individual countries?
- Financial Intermediation and Financial Market Resilience
- Information and trading in financial markets
- Herding, crowded trades, and reach for yield
- Leverage and fire sales
- Regulatory frictions
- Payments, wholesale funding, short-term funding markets
- Financial networks and financial market structure
- Opaque markets
Disruptions to financial intermediaries can profoundly affect financial market stability, as evidenced during the previous crisis. Regulations on financial intermediaries can serve to both enhance and hinder the ability of these institutions to support financial markets. How has the regulatory response following the last crisis affected financial market resilience? Have potentially unintended consequences sprouting from these regulations offset the intended benefits to market participants? Have changes in the structure of funding and asset markets after the crisis affected risk incentives of market participants? Have reach for yield and other risk incentives of investors grown in recent years, and are the risks on financial stability that they pose comparable to those before the crisis?
- Emerging Technologies and Financial Stability Challenges
- Regulatory challenges of financial innovation
- Big data
- Innovations in asset management and trading technologies
- Algorithms: use and abuse
- Digital currencies, private and central bank
- Smart contracts and blockchain
Emerging technologies have created new opportunities that benefit market participants. However, these innovations pose challenges, both to regulators and financial institutions. How have financial innovations contributed to or weakened the resilience of the financial system? What are the key challenges facing regulators in assessing risks from new instruments and markets? What should be the policy responses to those challenges? How do big data, algorithmic trading, and fintech affect how firms and market participants compete with each other, and has this competition adversely affected stability in financial markets? Can existing technologies remain viable in the face of new ones? Can digital currencies be used as an effective policy tool for central banks?
- Household balance sheets and financial stability
- Unintended consequences of financial reforms on household credit
- Bank and nonbank incentives and consumer credit
- Housing reforms, government-sponsored enterprises, and mortgage markets
- Nontraditional factors affecting household financial behavior
- Household leverage and portfolio choice
- Household financial market participation
Household balance sheets were an important catalyst for the last financial crisis. In the aftermath, however, a large number of financial reforms were enacted to mitigate potential feedback from the household sector to the broader financial system. How do household balance sheets differ today, and are there any new threats to financial stability in this regard? Have post-financial-crisis regulatory changes made household leverage more or less important to financial stability? Have there been unintended consequences of these financial reforms for households? Have regulatory tools used by central banks and other regulators been effective in curbing excessive leverage in the household sector?
Andrea Eisfeldt, University of California, Los Angeles
Andrew Winton, University of Minnesota
Stathis Tompaidis, University of Texas at Austin
Rod Garratt, University of California, Santa Barbara
Christine Parlour, University of California, Berkeley
Giovanni Dell’Ariccia, International Monetary Fund
Paul S. Willen, Federal Reserve Bank of Boston
Paper Submission Procedure
The deadline for submissions is June 30, 2019. Please send completed papers by email to OFR-FRBC_Conf@ofr.treasury.gov and include “FINANCIAL STABILITY CONF” in the subject line. Notification of acceptance will be provided by September 15, 2019. Conference papers are due on November 1, 2019. Questions about the call for papers or the conference can be directed to Joseph Haubrich at firstname.lastname@example.org.
Expenses for Conference Speakers and Presenters
Travel and accommodation expenses will be provided for conference speakers and paper presenters.