Background

The International Workshop on Financial System Architecture and Stability (IWFSAS) provides a forum for academic researchers, practitioners, and policymakers to discuss current issues related to the structure and design of financial systems and their impact on macro-financial stability and sustainable economic development.

While the specific theme of the workshop changes every year, the this annual event’s overall objective is to stimulate high quality debate and policy relevant cutting-edge research that informs our understanding of how various financial sector issues can impact the stability of the financial system and the overall economy – nationally, regionally and globally.

Further information on previous IWFSAS meetings and their themes can be found at http://iwfsas.org/previous-iwfsas/

IWFSAS 2023 organizers:

This year’s IWFSAS meeting will be hosted by the Centre for European Policies Studies (CEPS) in collaboration with Bayes Business School (formerly Cass), the Euro-Mediterranean Economists Association (EMEA), the Gustavson School of Business at the University of Victoria and the National Bank of Belgium (NBB).

Aims and topics

The eighth IWFSAS conference offers leading academics, practitioners, and policymakers the opportunity to discuss innovative research on a range of topics related to banking regulation, supervision and crisis management aimed to preserve financial stability during a period of recurrent crises. Banking crises can have devastating effects on the economy, leading to financial instability and bank runs, job losses, and widespread economic hardship.

The recent crisis surrounding Silicon Valley Bank (SVB) and Credit Suisse (CS) has put the crisis management framework in the US and in Switzerland to the test. Calls to further strengthen the regulatory framework for banks, given the different jurisdictional domains for monetary policy and fiscal policy, and the design of the European Banking Union (EBU), have followed suit. Of the three EBU pillars, the Single Supervisory Mechanism (SSM) and the Single Resolution Mechanism (SRM) are now in place, while the proposed European Deposit Insurance System (EDIS) remains merely a proposal.

It is crucial that both bank regulation and crisis management respond appropriately to the increasing frequency of banking crises, particularly in markets where traditional banking is changing with the increasing role of open finance and digital currency.

One key response should be to strengthen the regulatory framework governing banks. This could involve increasing capital and liquidity requirements, improving risk management practices, and enhancing transparency and disclosure requirements. Sounder regulation can also help to prevent banks from taking excessive risks and reduce the likelihood of crises occurring in the first place.

On top of sounder regulation, it is also important to have effective crisis management mechanisms in place. This could involve establishing a framework for early intervention and the resolution of banks that are in distress. Such a framework would allow troubled banks to be dealt with quickly and efficiently, before they become a systemic risk to the wider economy. It could also involve establishing adequately designed deposit insurance schemes, which would protect depositors in the event of a bank failure. By ensuring that depositors are protected, such a scheme could help to prevent bank runs and other forms of contagion from spreading.

Finally, it is crucial to have effective communication and coordination between regulators, central banks, and other relevant authorities during a banking crisis. This would ensure a unified response to the crisis, and that any measures taken are effective in restoring financial stability. Effective communication and coordination can also help to prevent panic and uncertainty among the public and financial markets, which can exacerbate a crisis.

The IWFSAS 2023 call for papers invites submissions of high-quality unpublished manuscripts on topics related to banking structure, regulation and crisis management, including, but not limited to:

• The role of banking regulation in preventing and managing banking crises
• The impact of banking crises on the real economy and society
• Case studies of banking crises and lessons learnt
• Bank business models and their resilience to financial and economic crises
• The effectiveness of crisis management policies, instruments and procedures in mitigating the effects of banking crises
• The effectiveness of deposit insurance schemes in protecting depositors during a crisis
• The role of central banks in managing banking crises and maintaining financial stability
• The impact of technological advancements on banking regulation, crisis management, and deposit insurance
• Climate stress testing; climate-related financial disclosures, reporting and other regulatory issues
• Central banks, the greening of the financial sector and financial stability concerns
• Geopolitical risks and their impact on banking and finance
• Macro-prudential policy post-Covid recovery
• Sustainability and stability of financial systems
• Emerging business models and new asset classes and risks

Keynote Speakers:

José Manuel Campa is the current Chairperson of the European Banking Authority.

After studying law and economics at the University of Oviedo and earning his PhD in economics from Harvard University, Mr. Campa taught finance at New York University and the IESE Business School and consulted for a number of international organisations including the World Bank, the IMF, the Bank for International Settlements and the European Commission.

He then served as the 10th Secretary of State for Economy of the Spanish government and was most recently Director of Regulatory affairs of the Santander Bank.

Conference Program & Papers

Location: Center for European Policy Studies, Pl. du Congrès 1, 1000 Bruxelles, Belgium