Kebin Ma 09 May 2016

Bank liquidity is a key component of the post Global Crisis environment. In this video, Kebin Ma discusses the interaction between market liquidity risk and funding liquidity risk. Capital requirements for preventing bank losses might not be as effective as we thought. The video was recorded in April 2016 at the First Annual Spring Symposium on Financial Economics organised by CEPR and the Brevan Howard Centre at Imperial College.

Thomas Gehrig 06 May 2016

Information asymmetry is a key factor during financial crises. In this Vox Views video, Thomas Gehrig compares the 1907 and 2007 crises and finds common patterns. Information is a driver of crises and of market liquidity. In periods of stress, finding liquidity is difficult and illiquidity increases mostly because of information. The video was recorded in April 2016 at the First Annual Spring Symposium on Financial Economics organised by CEPR and the Brevan Howard Centre at Imperial College.

Michalis Haliassos 05 May 2016

The free movement of people within the EU implies that individuals are confronted with unfamiliar policies and institutions. Can we expect them to adjust to these new sets of rules? In this Vox Views video, Michael Haliassos discusses his research on the role of cultural predispositions in household financial behaviour and the implications for the harmonisation of institutions across European countries. The video was recorded in April 2016 at the First Annual Spring Symposium on Financial Economics organised by CEPR and the Brevan Howard Centre at Imperial College.

Franklin Allen 04 May 2016

Financial regulations failed to stop the Global Crisis or prevent it from becoming so serious. In this video, Franklin Allen argues there is insufficient theoretical and empirical background on which to base regulations. Regulations tend to be introduced as immediate responses to a problem, and research needs to feed policy in order to provide regulators with the necessary theoretical and empirical tools to react efficiently. This video was recorded at the "Financial Regulation Initiative" conference organised by CEPR and held in London on 30 September 2015.

David Miles 03 May 2016

Capital requirements for banks are a key issue in the post-Crisis environment. In this video, David Miles discusses the importance of creating incentives for banks to start using equity rather than debt to finance themselves. The combination of asymmetric information and limited liability can give banks an incentive to take on more risk; capital requirements would force banks to take on less risk. This video was recorded in April 2016 at the First Annual Spring Symposium on Financial Economics organised by CEPR and the Brevan Howard Centre at Imperial College.

Charles Goodhart 22 April 2016

In this video, Charles Goodhart underlines that macroprudential policies are meant to deal with systemic issues and thus need systemic indicators. Governments need to set up quantitative criteria that would trigger macroprudential policies when the thresholds were surpassed. Credit growth and housing prices should be part of the indicators. The regulation, however, need not be automatic. As with the Bank of England inflation target, passing a credit thresholds could, for example, trigger a requirement that the regulator explicit justify the use or non-use of the policies.  This video was recorded at the 18th March 2016 conference on Financial Regulation organized by NIESR and held at the Bank of England. 

Thorsten Beck 22 April 2016

The regulatory response since the Global Crisis has been largely national with some international coordination. In this video, Thorsten Beck argues that because there has been an increase in cross-border banking, cooperation has to become more efficient. So far it has been a “sunny day” cooperation but more importance needs to be given to “rainy days” cooperation as failure to do so would have huge impacts. This video was recorded at the 18th March 2016 conference on Financial Regulation organized by NIESR and held at the Bank of England.

Market failures in bank and market liquidity – things such as fire sales and rollover risk – were key elements in the Global Crisis. In this video, Giovanni di Nicolò suggests such dangers could be reduced if banks had a ratio of liquid assets to liquid liabilities close to 1 – they certainly should be higher than they are now. While there is a wide consensus on the need to avoid another such liquidity crisis, there is no agreement on which tools would be best to achieve this. This video was recorded at the 18th March 2016 conference on Financial Regulation organized by NIESR and held at the Bank of England.

Dirk Schoenmaker 22 April 2016

Governments around the world have embraced macroprudential policies but there is still no consensus on which indicators it should focus on. In this video, Dirk Schoenmaker suggests using credit growth and housing prices as key indicators to follow for macro-prudential policy. Given that macro-prudential policies are highly unpopular, they can’t be in the hands of politicians but should be in the hands of an independent body such as the central bank. This video was recorded at the 18th March 2016 conference on Financial Regulation organized by NIESR and held at the Bank of England. 

Franklin Allen 22 April 2016

Designing good regulation requires a good knowledge of the systems to be regulated. In this video, Franklin Allen argues that we still have an imperfect understanding of systemic risk leading to difficulties in designing effective regulations. One of the problems stems from the fact that regulators still think in terms of macroeconomics instead of focusing on the financial side. This video was recorded at the 18th March 2016 conference on Financial Regulation organized by NIESR and held at the Bank of England. 

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