Views on improving the integrity of global capital markets
12 October 2020

Systemic Risk Council Calls for Renewed Debate on Reforms for Financial System Stability

Ahead of a webinar Wednesday, October 14, 2020, the Systemic Risk Council (SRC) today has issued a paper on further possible measures to underpin the resilience and stability of the financial system. The webinar is titled: Ensuring Financial Stability: Relaunching the Reform Debate after Pandemic Dislocation.

Speakers include:

A Renewed Reform Debate:

  • Jean-Claude Trichet, Former President of the European Central Bank
  • Sheila C. Bair, Former Chair of the U.S. Federal Deposit Insurance Anat Admati, George G.C. Parker Professor of Finance and Economics at Stanford Business School
  • Sir Paul Tucker, Chair, Systemic Risk Council   

Banking and Resolution:

  • Anat Admati, George G.C. Parker Professor of Finance and Economics at Stanford Business School
  • Sir John Vickers, Former Chair of the UK’s Independent Commission on Banking, & Warden of All Souls College, Oxford
  • Daniel K. Tarullo, Former Federal Reserve Board Governor
  • Andrea Enria, Chair of the European Central Bank’s Supervisory Board
  • Moderator – Peter Fisher, Senior Lecturer, Tuck School of Business at Dartmouth

Levered Markets and Shadow Banking

  • Vítor Constâncio, Former VP European Central Bank
  • Darrell Duffie, Professor of Finance Stanford Business School
  • Randal Quarles, Vice Chair for Supervision of the Federal Reserve Board of Governors
  • Moderator – Jeremy C. Stein, Professor of Economics, Harvard University

The market dislocations in March revealed continuing vulnerabilities in core markets. Central banks’ firepower stabilized conditions, but risks obscuring problems that should be addressed.

The SRC’s paper covers the regimes for bank equity capital, liquidity and resolution, as well as dynamic macroprudential policy and problems of regulatory complexity. In addition, the SRC stresses the need for reenergized efforts to address fragilities in shadow banking, levered trading markets, clearing houses, and the mandates of market regulators.

Paul Tucker, the chair of the SRC said:

“Notwithstanding efforts to make the core of the financial system more resilient, there are problems remaining from urgent unfinished business, neglected issues, and some backsliding. Our paper, and the webinar next Wednesday, amount to an attempt to persuade the authorities to renew and reinvigorate efforts to ensure the financial system is safe and sound without impairing its contribution to the economy.”

The webinar next Wednesday, hosted by CFA Institute, includes speakers from outside the SRC, including top policymakers from both the United States and the European Union.

The full text of the statement is available here.

A link to the event page registration for the October 14 webinar is here.

Photo Credit @ Getty Images / WIN-Initiative

About the Author(s)
Bristol Voss

Bristol Voss is director of content engagement and publishing at CFA Institute.

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