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Interconnectedness: Building Bridges
between Research and Policy
May 8-9, 2014
The International Monetary Fund (IMF) in collaboration with the Institute for New Economic Thinking (INET) and the Deutsche Bundesbank are hosting a two-day conference on financial networks at the IMF’s Headquarters in Washington, D.C on May 8-9, 2014.
The financial crisis has highlighted the need to better understand the role of financial interconnectedness in creating systemic risk and macroeconomic instability. Financial interconnectedness is broadly understood as referring to direct and indirect exposures from various asset markets and players. Interconnectedness based on interbank exposures has been most studied, but other sources of shock propagation based on securities and state-contingent exposures are also important. Systemic risk can arise through these linkages so that the failure or distress of one or more entities can have negative spillovers throughout the financial system and the real sector, domestically and across borders. The global financial crisis has led to an overhaul of the regulatory framework and has prompted regulators and supervisory authorities to develop new models and tools for analyzing interconnectedness and its implications for systemic stability. Indeed, one of the fundamental characteristics that make financial players systemically important is their degree of interconnectedness. While the crisis has spurred a large body of academic work on financial networks, many challenges remain.
Against this backdrop, the International Monetary Fund (IMF) in collaboration with the Institute for New Economic Thinking (INET) and the Deutsche Bundesbank are hosting a two-day conference on financial networks at the IMF’s Headquarters in Washington, D.C. The event will bring together leading academics and senior policy-makers for an intensive dialogue on the implications of financial interconnectedness for systemic risk and financial stability. By hosting this event, the IMF aims to provide a unique forum for information-sharing and coordination between the academic and policy communities, with a view to strengthening the resilience of its membership to spillovers while also influencing the areas where more research is needed to support policy.
Conference attendance is by invitation only (Please email interconconf@imf.org if you are interested in attending. Due to capacity constraints, note that we will not able to accommodate all requests.) The conference will start on Thursday, May 8 at 9:00 a.m. and will conclude on Friday, May 9 at 2:00 p.m. with a high-level panel discussion followed by lunch. Invited attendees are required to present photo identification on entering the IMF at 1900 Pennsylvania Avenue, N.W., Washington D.C.
Conference Agenda
May 8-9, 2014 |
|
Thursday, May 8, 2014 |
|
| 8:45–9:00am | Arrival/Registration |
| 9:00-9:15am | Opening Remarks |
| 9:15–9:45am | Interconnectedness and Financial Stability |
| 9:45–10:25am | Session 1: Financial Networks in OTC and Interbank Markets |
|
Chair: Ben Craig (Deutsche Bundesbank)
|
|
| 10:25–10:50am | Coffee Break |
| 10:50am–12:10pm | Session 2: Financial Networks in OTC and Interbank Markets |
Chair: Stijn Claessens (IMF, Research Department)
Paper: EffIciency and Stability of a Financial Architecture with Too-Interconnected-to-Fail Institutions |
|
| 12:10–1:10pm | Lunch (By invitation, HQ2 Conference Hall 2) |
| 1:10–3:10pm | Session 3: Welfare Implications of Financial Networks |
Chair: Giovanni Dell’Ariccia (IMF, Research Department) Paper: Intermediation in Networks Paper: Bilateral Trading in Networks
|
|
| 3:10–3:30pm | Coffee Break |
| 3:30–5:30pm | Session 4: Financial Networks and Systemic Risk |
Chair: Ratna Sahay (IMF, Monetary and Capital Markets Department) Paper: Financial Networks and Contagion Paper: How Likely is Contagion in Financial Networks? |
|
| 5:30–7:00pm | Reception/Dinner (By invitation, HQ2-02B-300G) |
Friday, May 9, 2014 |
|
| 9:00–10:30am | Session 5: Interconnectedness in Policy Work |
Chair: Brenda Gonzalez-Hermosillo (IMF, Monetary and Capital Markets Department) Paper: Sweden and the Global Banking System: Network Links and Vulnerabilities Paper: Crisis Transmission in the Global Banking Network |
|
| 10:30–11:30am | Session 6: The Present and Future Role of Financial Networks |
|
Paper: The Present and Future Role of Financial Networks |
|
| 11:30–11:45am | Coffee Break |
| 11:45am–1:00pm | Closing Panel |
|
Chair: José Viñals (Financial Counselor and Director, IMF, Monetary and Capital
Markets Department) |
|
| 1:00–2:00pm | Lunch (By invitation, HQ2 Conference Hall 2) |
Conference organizers
- Stefano Battiston (University of Zürich)
- Co-Pierre Georg (Deutsche Bundesbank)
- Brenda Gonzalez-Hermosillo (IMF)
- Camelia Minoiu (IMF)
