2024 Financial Stability Conference
Financial Stability: Emerging Risks in a Time of Interconnectedness and Innovation
The Federal Reserve Bank of Cleveland and the Office of Financial Research hosted their twelfth annual financial stability conference on November 21–22, 2024. The conference, Financial Stability: Emerging Risks in a Time of Interconnectedness and Innovation, was held in Cleveland, Ohio. Virtual attendance was available.
Questions?
Markets and institutions, increasingly interconnected, are being challenged by the dizzying pace of change in the financial system, accelerating the buildup of risk and threats to solvency. Regulatory adaptations add another layer of complexity to the issue. Increasingly sophisticated algorithms and the rise of generative artificial intelligence may create new vulnerabilities across the system as banks, nonbank financial institutions, and financial markets exploit nascent opportunities. The conference explored how firms and markets can become resilient or even antifragile and how regulators can encourage and shepherd, or at least not derail, needed changes.
Agenda
Thursday, November 21, 2024
| 8:00–8:45 am |
Registration and Breakfast |
|
8:45–9:00 am |
Welcome and Opening Remarks | videoJoseph Haubrich, Senior Economic and Policy Advisor, Federal Reserve Bank of Cleveland Beth M. Hammack, President and Chief Executive Officer, Federal Reserve Bank of Cleveland |
| 9:00–10:00 am |
Panel: Emerging Risks | videoModerator: Alexander Lipton, Global Head, Research and Development, Inaugural Advisory Board Member, Abu Dhabi Investment Authority, Senior Founding Connection Science Fellow, Massachusetts Institute of Technology Scott W. Bauguess, Vice President, Global Regulatory Policy, Coinbase |
| 10:00–10:15 am |
Break |
Paper Session: Emerging Risks |
|
| 10:15–11:00 am |
Digital Payments and Monetary Policy Transmission | paper | videoSergey Sarkisyan, Assistant Professor of Finance, Max M. Fisher College of Business at the Ohio State University | slides Discussant: Rod Garratt, Senior Advisor, Bank for International Settlements | slides |
| 11:00–11:45 am |
Financial Innovation and Risk: Evidence from Operational Losses at U.S. Banking Organizations | paper | videoAtanas Mihov, Associate Professor of Finance, University of Kansas School of Business | slides Discussant: Anna Chernobai, Professor of Finance, Syracuse University, Whitman School of Management | slides |
| 11:45 am–12:30 pm |
Lunch |
| 12:30–1:15 pm |
Keynote Conversation | videoBeth M. Hammack, President and Chief Executive Officer, Federal Reserve Bank of Cleveland Sandra L. Thompson, Director, Federal Housing Finance Agency |
| 1:15–1:30 pm |
Break |
Paper Session: Financial Institutions |
|
| 1:30–2:15 pm |
The Economics of Market-Based Deposit Insurance | paper | videoEdward T. Kim, Assistant Professor of Finance, Stephen M. Ross School of Business at the University of Michigan | slides Discussant: Vikas Agarwal, Professor of Finance and Distinguished University Professor of the University System of Georgia and Bank of America Distinguished Chair, J. Mack Robinson College of Business Georgia State University | slides |
| 2:15–3:00 pm |
Bailouts, Bail-ins, and Banking Industry Dynamics | paper | videoApril Meehl, Research Economist, Office of Financial Research at the US Department of Treasury | slides Discussant: Kyle Dempsey, Assistant Professor of Economics, The Ohio State University | slides |
| 3:00–3:30 pm |
Break |
| 3:30–4:30 pm |
Panel: Financial Institutions | videoModerator: Jill Cetina, Executive Professor of Finance and Associate Director of the Commercial Banking Program, Mays Business School, Texas A&M University Elena Carletti, Professor of Finance, Universita’ Bocconi |
| 4:30–6:30 pm |
Reception Hosted at the Federal Reserve Bank of Cleveland |
Friday, November 22, 2024
| 8:00–8:30 am |
Registration and Breakfast |
| 8:30–8:45 am |
Welcome and Opening Remarks | videoStacey Schreft, Deputy Director, Research and Analysis, Office of Financial Research at the US Department of the Treasury James Martin, Acting Director, Office of Financial Research at the US Department of the Treasury |
| 8:45–9:45 am |
Keynote: Fighting Financial Crises in the 21st Century | videoAndrew Metrick, Janet L. Yellen Professor of Finance and Management and Director of the Yale Program on Financial Stability, Yale School of Management | slides |
| 9:45–10:00 am |
Break |
Paper Session: Financial Markets |
|
| 10:00–10:45 am |
Reaching for Duration and Leverage in the Treasury Market | paper | videoDaniel J. Barth, Principal Economist, Board of Governors of the Federal Reserve System | slides Discussant: Pingle Wang, Assistant Professor of Finance, Naveen Jindal School of Management at University of Texas, Dallas | slides |
| 10:45–11:30 am |
Flow-Induced Trading: Evidence from the Daily Trading of Municipal Bond Mutual Funds | paper | videoSergey Chernenko, Associate Professor of Management, Mitchell E. Daniels, Jr. School of Business at Purdue University | slides Discussant: Michael J. Fleming, Head of Capital Markets Studies, Federal Reserve Bank of New York | slides |
| 11:30–11:45 am |
Break |
| 11:45 am–12:45 pm |
Panel: Financial Markets | videoModerator: Karen M. Pence, Deputy Associate Director of Research and Statistics, Board of Governors of the Federal Reserve System Christian Lundblad, Richard Levin Distinguished Professor of Finance and Senior Associate Dean for Faculty and Research, University of North Carolina Kenan-Flagler Business School |
| 12:45–1:45 pm |
Closing Remarks and LunchJoseph Haubrich, Senior Economic and Policy Advisor, Federal Reserve Bank of Cleveland |
When and where
November 21 – November 22, 2024
Cleveland, Ohio and Hybrid