Assessing the Economic Impact of COVID-19
The outbreak of the COVID-19 virus is profundly affecting the world’s society and economy. To provide an in-depth assessment of the economic and financial impact of the COVID-19 epidemic, the Florence School of Banking and Finance is organising a series of online lectures, seminars and debates, aimed particularly at reviewing Europe’s economic policy response to the virus.
These policy debate activities are designed on the basis of the School’s academic expertise and the know-how of selected partners from its network of research centres, institutions, and private sector organisations.
Assessing the Preliminary Impact of COVID-19 on the EU Banking Sector
Online debate - 02 July 2020 - 13:00 CET
In this online debate, Mario Quagliariello (European Banking Authority) will provide selected findings on the state of health of the EU banking sector during in the first phase of the crisis and will review what preliminary assessments tell us about banks’ resilience (e.g. asset quality, capital & liquidity buffers, operational continuity). The online debate will also discuss merits and limits of different diagnostic tools – such as stress testing – but also data needs and methodological challenges. It will conclude by engaging with lessons learnt for risk assessment.
Following Mario Quagliariello’s initial remarks, Véronique Ormezzano (BNP Paribas), Til Schuermann (Oliver Wyman) and Nicolas Véron (PIIE and Bruegel) will be sharing their perspectives on the current state of the banking sector and the challenges ahead.
The debate will be chaired by Elena Carletti (Bocconi University and Florence School of Banking and Finance, EUI) and is part of a COVID-19 online event series organised by the Florence School of Banking and Finance to discuss Europe’s economic policy response to the pandemic.
Restraining Dividends (and other Pay-Outs)
Online debate - 24 June 2020 - 12:30 CET
The European University Institute’s Florence School of Banking and Finance in cooperation with the Leibniz Institute for Financial Research SAFE (Goethe University, Francfort) and the Centre for Economic Policy Research (CEPR) will introduce and discuss the rationale, merit and scope of the ESRB Recommendation on the restriction of pay-outs during the COVID-19 pandemic. Francesco Mazzaferro (Head of the Secretariat of the European Systemic Risk Board (ESRB)) will present the report and the ESRB Recommendation to achieve a uniform approach to restraints on pay-outs across the European Union and across different segments of the financial sector. The debate will be chaired by Elena Carletti (Bocconi University, Florence School of Banking and Finance and CEPR), moderated by Jan-Pieter Krahnen (Goethe University, Leibniz Institute for Financial Research SAFE and CEPR) and will feature Viral V. Acharya (New York University, Stern School of Business and CEPR) and Sylvie Mathérat (Independent member of the EU commission High Level Forum on Capital Market Union) as commentators.
The French-German COVID-19 Recovery Plan
Online debate - 18 June 2020
This online debate held by the European University Institute’s Florence School of Banking and Finance will introduce and discuss the unprecedented French-German proposal of a grants-based Recovery Plan funded by a European Union borrowing capacity entrusted to the European Commission.
The debate will be moderated by Elena Carletti (Bocconi University and Florence School of Banking and Finance, European University Institute) and will feature as speakers Jörg Kukies State Secretary, German Ministry of Finance and Odile Renaud-Basso Director General of the French Treasury
ECB Policies in COVID-19 Times
Online debate - 10 June 2020
In this online seminar, Isabel Schnabel (Member of the ECB’s Executive Board) will review the ECB’s policy response to the COVID-19 pandemic explaining the economic rationale for the ECB’s crisis-related monetary policy measures – including the Pandemic Emergency Purchase Programme (PEPP), targeted and non-targeted liquidity operations, as well as recent changes to the ECB’s collateral framework. Furthermore, Ms Schnabel will look beyond the immediate crisis response to the medium-term economic impact of the pandemic, including the economic outlook, the situation of the financial sector and the future of European integration.
Speakers include Jean-Pierre Mustier (European Banking Federation, Unicredit) and Patrick Honohan (Trinity College Dublin, Peterson Institute for International Economics, formerly Governor of the Central Bank of Ireland). The debate is moderated by Elena Carletti (Bocconi University and Florence School of Banking and Finance, European University Institute).
Credit Ratings and the COVID-19 crisis
Online debate - 4 June 2020
This online seminar will take stock of the current regulation and supervision of Credit Rating Agencies in the European Union and will assess the impact of recent or future downgrades on issuers and markets. Lastly, it will explore lessons learned from the supervision of CRAs during the past euro crisis for the current COVID-19 crisis. Speakers include Stephen Hynes and Gwenael Pover (ESMA). The debate is moderated by Elena Carletti (Bocconi University and Florence School of Banking and Finance, European University Institute).
SSM supervisory measures in the context of the COVID-19 pandemic
Online debate - 28 May 2020
In the euro area, the European Central Bank (ECB) adopted measures in its supervisory competence to ensure banks fulfil their lending role to households and businesses. The ECB adopted supervisory measures on temporary capital and operational relief, with the relaxation of some buffers e.g. allowing banks to go below the Pillar 2 Guidance (P2G), the Capital Conservation Buffer (CCB) and the liquidity coverage ratio (LCR) or adapting the composition of capital for Pillar 2 Requirements (P2R). The ECB also introduced flexibility regarding the treatment of non-performing loans (NPLs), as well as recommended the adoption of transitional IFRS 9 rules, amongst others. Against this background, this online seminar will dive into those supervisory measures and discuss the implications of temporary measures for supervisors and banks. Speakers include Edouard Fernandez-Bollo,ECB Supervisory Board and Thorsten Beck, Cass Business School. The debate is moderated by Elena Carletti (Bocconi University and Florence School of Banking and Finance, European University Institute).
Rationale and Limitations of ‘SURE’
Online debate - 15 May 2020
This joint Bruegel-EUI discuss the rationale and potential limitations of SURE, ‘Support to mitigate Unemployment Risks in an Emergency’, a new instrument proposed by the EU Commission to empower Member States to mobilise significant financial means to fight the negative economic and social consequences of the coronavirus outbreak on their territory. Speakers include Roel Beetsma (University of Amsterdam),Grégory Claeys (Bruegel) and Gilles Mourre (DG ECFIN, European Commission). The debate is moderated by Elena Carletti (Bocconi University and Florence School of Banking and Finance, European University Institute).
European Pandemic Equity Fund – contribution from SAFE (Frankfurt)
FBF Director Elena Carletti (Bocconi University and EUI), together with Arnoud Boot (University of Amsterdam), Rainer Haselmann (Goethe University Frankfurt), Hans-Helmut Kotz (Harvard Center for European Studies and SAFE), Jan Pieter Krahnen (SAFE), Loriana Pelizzon (Goethe University Frankfurt, SAFE, Ca’ Foscari University of Venice), Stephen Schaefer (London Business School), Marti Subrahmanyam (NYU Stern Business School), recently contributed to the growing debate on the need for a European Pandemic fund, continued SME lending and debt sustainability – as being core to the recovery.
Further information on the European Pandemic Equity Fund may be found in these series of Policy Letters:
The Coronavirus and Financial Stability – Policy Letter 78
Corona and Financial Stability 2.0: Act jointly now, but also think about tomorrow – Policy Letter 79
Corona and Financial Stability 3.0: Try equity – risk sharing for companies, large and small – Policy Letter 81
Corona and Financial Stability 4.0: Implementing a European Pandemic Equity Fund - Policy Letter 84
SME Financing in the COVID-19 Context
Online debate - 29 April 2020
This joint EUI-Oliver Wyman Forum online debate assesses the impact of the wide-spread lockdowns that followed the outbreak of COVID-19 on real economies, particularly on Small and Medium-Sized Enterprises (SMEs) which struggle to bridge their profit shorfalls. The debate, introduced by James Bryan (Oliver Wyman), features as speakers Christian Ossig (Association of German Banks), José María Roldán (Spanish Banking Association), Frédéric Visnovsky (Banque de France and ACPR), in a discussion moderated by Elena Carletti (Bocconi University and FBF).
Europe’s Banking System- Fast Forward Six Months
Online debate - 15 April 2020
This joint EUI-Oliver Wyman Forum online debate takes stock of the early evidence of the macro-economic impact of the crisis and of the fiscal measures being taken to protect our societies and economies from the COVID-19 virus. It also discusses the unparalleled challenges that will follow for Europe’s banking system. The online debate features contributions by Andrea Federico (Oliver Wyman), Michala Marcussen (Société Générale), Erik Nielsen (Unicredit), Jörg Zeuner (Union Investment), in a discussion moderated by Elena Carletti (Bocconi University and FBF).
A Fiscal Response to COVID-19: What are the Options?
Online debate - 10 April 2020
EU Member States are putting place a series of extraordinary and unprecedented fiscal measures to support their economies and to combat the ravaging effects of COVID-19. Vitor Constâncio (Lisbon School of Economics and Management), Clemens Fuest (ifo Institute, University of Munich), Jean Pisani-Ferry (EUI and SciencesPo) and Guido Tabellini (Bocconi University) assess whether those measures will be effective, what coordination instruments are available at the European level, and which new EU financial assistance instruments could be considered. The debate is moderated by Elena Carletti (Bocconi University and FBF).
State Aid in the context of COVID-19
Online seminar - 3 April 2020
On 19 March, the European Commission adopted a Temporary Framework to enable Member States to use the full flexibility foreseen under State aid rules to support the economy in the context of the COVID-19 outbreak. In this online seminar, Ramona Ianus (DG Competition, European Commission) illustrates the main characteristics of the Framework, which enables Member States to put in place direct grants, selective tax advantages, public guarantees or public loans can be granted to companies that face difficulties because of the COVID-19 outbreak.
Financial Stability in Times of Epidemics
Online lecture - 26 March 2020
The coronavirus epidemic will not wipe us out, but it can be anticipated that it will have a major impact on our habits, world trade and the virtual economy. In the end it might make us all wiser, but probably also poorer for a while. Enrico Perotti (Professor of International Finance at the University of Amsterdam) provides an analysis of our current phase financial stagnation and its potential vulnerabilities, with special attention to bank and shadow bank related risks. On these grounds, he introduces a speculative view on the likely effects of the COVID-19 virus crisis on asset prices, inflation and financial stability.