Past Event

Risks Stemming from the Intertwined Global Financial Markets – How can Policymakers, Regulators and Businesses Work Together to Mitigate these Risk Factors?

Tue. December 12, 2023 08:30 am - 10:30 am !Thompson Hine Offices New York, NY 10017

The last decades have in general exhibited an increase in political and economic openness, mostly accompanied by an increase in financial integration. The interconnected nature of the financial system has been at a major concern among financial institutions, academics and policymakers.

Today’s financial systems of advanced economies are highly interconnected, with a few large institutions playing a dominant role and interacting with smaller institutions through various financial products and markets. While this structure, referred to as core-periphery, may help buffer small shocks, it is a source of systemic instability as it concentrates resources in systemically important banks, leaving the rest of the system vulnerable to their failure.

Interconnections between financial markets play a dual role. On the one hand, they can absorb shocks and lead to greater robustness. They can also propagate shocks and create greater fragility.

 

AGENDA will include topics like:
• Factors and structural challenges that invites certain risk in the first place
• The ”too-interconnected-to-fail” problem (also “too-big-to-fail”)
• Why financial institutions often concentrate risk in a manner that generates systemic instability, rather than spreading risk across the financial system?
• External risk factors to the system incl. risks of a technical, financial, political nature or cyber related
• What can be done to mitigate these risk factors? What steps regulators and financial supervision are taking? What are their limits?
• Is there a need for policy changes (both internally within the US and EU-level and internationally)
• What are the key future challenges for the interconnectedness of financial markets - e.g. with (central bank) digital currencies?

 

SPEAKERS:
• Tom Campanile, Head of US Banking & Capital Markets Risk Management, EY
• Elizabeth McCaul, Member of the Supervisory Board, EUROPEAN CENTRAL BANK
• Nathaniel Wuerffel, Head of Market Structure, BNY MELLON
• Yvonne Bendinger-Rothschild, Executive Director, EACCNY