Webinar #2 with Enrico Perotti
This webinar will address the new regulatory treatment of Contingent Convertible Debt instruments and the development of the underlying CoCo bond markets. The contractual feature of the existing stock of CoCo debt will be analysed along various dimensions. First, in terms of their regulatory effectiveness in absorbing risk. Second, in terms of their impact on risk incentives and thus on their preventive effect. Third, we will look at the empirical evidence on the market response to their issuance. Finally, time allowing we will discuss the recent evolution on the CoCo bond market in terms of issuances and prices.
Enrico Perotti (Ph.D. MIT) is Professor of International Finance at the University of Amsterdam, Member of the Scientific Committee of the Florence School of Banking and Finance and CEPR).
His advisory work has focused on policy advice on issues of banking, financial reforms and stability to the EC, ECB, IMF, DNB, Bank of England, the World Bank and the UK Treasury.
The European University Institute (EUI), the Brevan Howard Centre at Imperial College together with BAFFI CAREFIN at Bocconi University are organising jointly a conference entitled “Filling the Gaps in Governance: The Case of Europe” to be held at the EUI in Florence on Thursday, April 28, 2016
The conference will bring together leading economists, lawyers, political scientists and policy makers to discuss the current economic situation in Europe with particular emphasis on the issue of filling the gaps or incompleteness in the agreements governing economic cooperation in Europe. These agreements, implicit and explicit, range from matters such as the agreements about domestic debt/GDP levels, the “no bailout clause”, the new banking union, the use of a common currency, the agreement to include identical Collective Action Clauses in all Euro area sovereign bonds and so on.
Franklin Allen | Brevan Howard Centre Imperial College
Elena Carletti | BAFFI CAREFIN Bocconi University and European University Institute
Joanna Gray | Birmingham University
Mitu Gulati | Duke University
23 April 2015
24 April 2014
25 April 2013
26 April 2012
14 April 2011
The EUI-nomics workshops provide a forum for discussion among academics and economists in public and private institutions about the current and expected future global economic conditions, with a special focus on the euro area and its member countries. For each country/area there will be short presentations by leading experts followed by general discussion. The workshops will be completed by a policy panel debating on key economic policy issues for the euro area.
As part of this year’s State of the Union conference in Florence, a workshop will discuss the stability of the banking system. The event will be hosted by Professor Richard Portes. He will be joined by the Florence School of Banking and Finance’s director Professor Elena Carletti. The event will conclude with a speech by Ignazio Visco, Governor of the Bank of Italy.
This conference will address the liberalisation of the financial sector that occurred towards the end of the 20th Century, with a particular focus on the 1980s. It will cover different countries and consider the emergence and persistence of a new regulatory paradigm until – or even after – the recent financial crisis.
In most rich countries, various measures have been passed in order to liberalise and “modernise” the financial markets. Each country had its own agenda, but each of them has experienced, to a various extent, a change in regulatory regime. Interest rates paid on deposits have been liberalised, competition has been favoured, traditional barriers between insurance, banking, and
financial market activities, have been removed, as well as exchange controls. Access to domestic markets by foreign financial institutions has been facilitated through reciprocal agreements or through an open door approach attracting foreign investors.
Financial deregulation – or liberalisation – has not yet been thoroughly examined by historians, though, because of the difficulty to access archival material for recent periods. However, such material is becoming increasingly accessible and allows historians to take a new look at the matter, particularly concerning the 1980s.
As major reforms of the financial sector, such as Basel III, are being widely debated today, it is important to take a broader and longer-term view, in order to understand if we are still living under the same regulatory regime as before, or if a truly new paradigm has emerged. We will address the relevance of the notion of “deregulation”, the links between the changes under consideration and globalisation, and the respective influence of market forces and politics in this process. These questions call for an interdisciplinary approach that not only looks at historical and economic aspects, but also addresses legal, conceptual, and political issues.
Organiser: Youssef Cassis
The European University Institute Forum on Brexit with short contributions from Brigid Laffan, Gary Marks and Liesbet Hooghe.
Brigid Laffan is Director of the Robert Schuman Centre for Advanced Studies (RSCAS) at the EUI.
Gary Marks is a research professor in Multilevel Governance at the VU University Amsterdam and Burton Craige Distinguished Professor of Political Science at the University of North Carolina at Chapel Hill. Gary Marks is currently a Visiting Scholar at the RSCAS.
Liesbet Hooghe is the W. R. Kenan Jr. Professor of Political Science at the University of North Carolina at Chapel Hill. She also holds a research professorship in multilevel governance at the VU University Amsterdam. Liesbet Hooghe is currently a Visiting Scholar at the RSCAS.
Watch the Recording of the Conference
Europe has grown out of its crises when reason and solidarity have prevailed, but it has also been devastated by its crises when fear and nationalism have taken the lead. Brexit, in the aftermath of the euro crisis, brings this dichotomy back to the foreground. Since 2010 there have been important advances in the development of the Economic and Monetary Union (EMU) and flexible forms of participation have allowed other EU countries, reluctant to join the euro, to share the basic principles that define the EU and have a common presence in the interdependent global world.
Brexit raises 3 crucial questions:
- Should the EMU be accelerated to become a centre of gravity within the EU, or slowed down to avoid a centrifugal diaspora? If accelerated, how?
- Should an ‘exit’ country be allowed free entry to the single market and other EU public goods without accepting freedom of movement?
- Should the EU remain as it is, or increase its capacity to offer common public services (Banking Union, border security, research funding, environment, etc.), or limit its scope of activity to the EU single and integrated market?
Joaquín Almunia (Former vice-president of the European Commission)
Ramon Marimon (European University Institute and UPF – Barcelona GSE; ADEMU)
Gorgio Monti (European University Institute; ADEMU)
Morten Ravn (University College London; ADEMU)
Annika Zorn (European University Institute, Florence School of Banking & Finance)
Watch the recording
On the 14-15 of July, the Florence School of Banking & Finance will hold an executive seminar on banking resolution. The aim of this Chatham House seminar will be to discuss, in the presence of senior decision-makers from the European Central Bank, the European Commission, the Single Supervisory Mechanism, the European Banking Authority and the Single Resolution Board the implications for regulators and financial institutions alike of the newly established banking resolution regime. Distinguished academics and senior practitioners from financial institutions have also confirmed their participation.
This is a closed event.
After two years of existence, it is time to focus on what happened in practice for the Single Supervisory Mechanism (SSM) and the Single Resolution Mechanism (SRM), i.e. in the core of the Banking Union, in Member States and beyond the EU. The workshop gathers as broad a range of perspectives as possible with a variety of countries (ins and outs, including non-participating Member States and third countries, crisis and non-crisis countries), levels (national, supra- and international), and backgrounds (academic and supervisory practice).
A good range of the most important issues will be discussed, namely: to what extent does the regulatory framework under the Single Rulebook assist or hinder centralized decision-making? Have the Joint Supervisory Teams (JST) proven to be a tool to have both a sufficiently high information basis on the local level of the banks supervised and robust enough a membership to avoid capture? Has the split of supervisory competences in the SSM created problems or can it be seen as a sensible scheme?
But also, if the purpose of the SRM, as part of the Banking Union project, is to centralize resolution decision-making, to what extent does discretion remain within the national authorities? To what extent should all classes of retail financial services be exempted from bail-in? To what extent does Minimum Requirement for own funds and Eligible Liabilities (MREL) under the BRRD framework and the Total Loss Absorbing Capacity (TLAC) standard developed by the Financial Stability Board (FSB) give raise to a one size fits all approach to resolution?
Stefaan De Rynck (DG FISMA, European Commission) will present a paper on the state of banking union, covering the issues of supervision, resolution and deposit guarantees. The paper reviews competing explanations for the emergence of banking union on the EU agenda. It also discusses the first indications on the effectiveness of banking union, both for a more centralized EU banking policy and for breaking the nexus between national banks and their sovereigns in the context of Euro Area crisis management.
Mr. De Rynck is an EU official who worked with Commissioner Michel Barnier on the creation of the single supervisory mechanism and the new resolution regime for EU banks. He is currently Head of Unit in DG FISMA for free movement of capital and enforcement of financial regulation. He teaches at the Collegio Carlo Alberto (University of Turin) and the College of Europe (Bruges), and has a PhD from the EUI, and has recently published in JEPP on the creation of the banking union. Currently he is drafting a chapter on banking union for a Routledge Handbook on EU Public Policy.
- Manuela Moschella (Associate Professor in International Political Economy, Scuola Normale Superiore, Florence)
- Christy Petit (Law Department, European University Institute)
The session will be chaired and moderated by Pierre Schlosser, Florence School of Banking and Finance