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Regulatory Treatment of Sovereign Exposures and Safe Assets


Registration deadline: 9 June 2020

  • General description

    Euro area governments have committed to break the doom loop between bank risk and sovereign risk. But policymakers disagree on how to treat sovereign exposures in bank regulation and whether and how to design a common safe asset. The objective of this course is to review the economics underpinning these contentious policy debates.

    This course will begin by recounting the history of the euro area sovereign debt crisis and reviewing theories that account for the role of the banking sector. Attention will then turn to recent trends in banks’ holdings of sovereign debt securities in view of current regulation. Through this lens, we will provide a framework for evaluating ideas to reform regulation, both in terms of prudential treatment and a possible common safe asset.

  • Topics covered

    • Theory and empirics of the bank-sovereign nexus (‘doom loop’)
    • Current regulatory treatment of sovereign exposures for banks and insurers
    • Ideas for reforming regulation with and without a common safe asset
    • Categorizing and evaluating common safe asset designs
    • Policy outlook: which path towards breaking the doom loop?

  • Meet the instructors

    Per Callesen is Governor of the National Bank of Denmark. Previously, he was Executive director at the IMF from 2010 to 2011 and served as Deputy Permanent Secretary at the Danish Ministry of Finance from 1993 to 2010. He holds a degree in economics from the University of Copenhagen.

    Sam Langfield is a PhD student at the Massachusetts Institute of Technology. He is on leave from the European Central Bank, where he was (Principal) Economist from 2012 to 2019, serving the European Systemic Risk Board’s Advisory Scientific Committee and High-Level Task Force on Safe Assets. He holds a degree in economics from the University of Oxford.

    Marco Pagano is Professor of Finance at the University of Naples Federico II, where he directs the Centre for Studies in Economics and Finance (CSEF). He is also a fellow at the Einaudi Institute for Economics and Finance (EIEF), and previously served as its inaugural president from 2008 to 2019. He holds a PhD in economics from the Massachusetts Institute of Technology and a first degree in economics from the University of Cambridge.

  • Prerequisites

    An advanced degree in economics, finance, or a related subjects is required to attend the course. Background knowledge of the euro area financial architecture is helpful, but not required.

  • Fees

    1950€ – Public Authorities (e.g. National Competent Authorities, Central Banks and European Institutions).

    2250€ – Private Sector.

    950€ – Academics (Full-time Professors, full-time PhD Students and full-time Research Associates). Please submit a certificate attesting your status of Professor, PhD Student or Research Associate to fbf@eui.eu before registering. FBF secretariat will provide you with a code to register.

    The course fee covers coffee and lunch breaks. Travel and hotel costs are not included.

    Please note that the payment must be settled two weeks before the start of the course.


    • In case a course is cancelled, registered participants will receive the full refund.
    • In case a course is moved to another date, registered participants may request a voucher to attend another FBF course.
    • Registered participants who have not yet paid the registration fee can cancel their participation until one month before the start of the course.
    • The registration fee is non-refundable, however it will be possible to transfer registration to another person or request a voucher for another FBF course up to 20 days before the start date of the course.

    For more details, please contact fbf@eui.eu
  • Practical information

    A certificate of attendance will be provided to all participants after the course.


    Please notice that the course dinner, and most of the social activities, will take place downtown.

    Recommended hotels nearby the EUI:

    Recommended hotels in downtown Florence:

    Suggested restaurants in Florence city centre


    On arrival, participants will be provided with temporary wi-fi access for the whole duration of the course.

    Privacy Notice

    The personal information you have provided will be processed in compliance with the EUI Privacy Statement for conferences. For general queries: fbf@eui.eu


    General information on local transport

    From Florence airport:

    Florence airport is located 8 km from the city centre, approximately 30 minutes by taxi or bus. Taxis can be found outside the arrivals terminal; no reservation is needed. A taxi ride from the airport costs about €20 and takes approximately 25/30 minutes.

    A tramway (line T2) connects the airport to the city centre. Trains leave from the airport terminal and take 20 minutes to the main railway station. One-way tickets can be bought from vending machines for €1.50.

    The airport is also connected to the main railway station in Florence by a shuttle bus (‘Vola in bus’) that leaves every 30 minutes (on the hour and on the half-hour) and takes 25 minutes. Tickets are available on board for €6.00.

    From the central railway station:

    Take bus n. 7 at the bus stop Stazione Nazionale in the direction “Fiesole Piazza Mino”, get off at the stop ‘San Domenico 01’. For bus routes and timetables consult the official timetable.

    Bus tickets are sold outside the railway station, at ATAF ticket kiosks and vending machines, tobacconists (tabacchi), newspaper kiosks (edicole), and most cafès (bar). Bus tickets can be purchased also on board with a contactless credit card (Mastercard, Maestro, Visa and V PAY).

    Private car

    From the A1 Milano-Napoli (Autostrada del Sole), take the Firenze Sud exit and follow directions to the city centre/Stadio. Follow the directions to the stadium (Stadio), then for Fiesole. San Domenico is on the main road to Fiesole.

    The EUI has several free parking areas available all over the Campus.