7th Bordeaux Workshop in International Economics and Finance: “Banking Regulation, Risk and Governance”

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CfP Deadline Date:
September 15, 2019
Conference Event:
15 November 2019

Event Location:
University of Bordeaux, France

Keynote Speaker(s):
Hans Degryse (University of Leuven)
Steven Ongena (University of Zurich)

Organizer(s):
LAREFI – University of Bordeaux

The most striking feature of the financial environment since the 80’s is the increasing number of banking crises around the world; such episodes mainly result from excessive bank credit growth and the failure of financial institutions’ governance mechanisms. The policy response has, most of the time, been related to the implementation of more stringent regulation and supervision, which have been tightened even more after the recent financial crisis. Specifically, banking regulation has been strengthened with the macro-prudential component and liquidity requirements, but also with a better risk control of financial institutions that can have an important impact on the entire banking system. The effects of these changes are interfered in by an interest rate environment that has been too-low-for-too-long and by shifts in banks’ governance models. Indeed, the too-low interest rate environment is likely to erode banks’ profits and net-interest-margins, emphasizing hence the risk-taking channel in the conduct of monetary policy. According to the search-for-yield mechanism, banking institutions are encouraged to invest in high-yield but risky financial assets, threatening so the stability of banking system. On the other hand, low interest rates may reduce the default risk of borrowers and thus the risk of banking institutions. All these effects depend also on the involvement of shareholders in risk management of banks and on different connections between banks and their (most important) customers; tighter connections allow banks to know better their borrowers and therefore to reduce their risk.

The Larefi-Bordeaux university workshop aims to address all these macro-, micro- and governance aspects of the effects of banking regulation policies on individual and systemic bank risks. The following non-exclusive topics are considered:

  • Banking regulation and risk-taking of banks within a too-low-interest rate environment
  • Changes in systemic risk of banks after the setting-up of a tighter banking regulatory environment
  • Differential risk-taking behavior of systematically important banks
  • Capital and liquidity requirements: how do they interact and does governance matter?
  • Basel 3 regulation and riskiness of banks: does connections with firms matter?
  • Banking regulation and bank risk-taking: the role of banks’ ownership
  • Capital requirements and capital adjustment for systemically important banks
  • New banking regulation and macro financial stability

Further Information:
The papers should be submitted electronically in pdf format to the following addresses:
jean-marc.figuet@u-bordeaux.fr and ion.lapteacru@u-bordeaux.fr

Link CfP: Banking Regulation, Risk and Governance