Europe’s Banking System- Fast Forward Six Months
The COVID-19 pandemic is affecting our lives in many unprecedented ways, which will result in long-lasting changes on our societies and economies. To discuss the macro-economic impact of the crisis and the effects of the fiscal measures being taken to contrast the COVID-19 virus, the Florence School of Banking and Finance teamed up with Oliver Wyman Forum to organise an online debate on the topic of ‘Europe’s Banking System: Fast Forward Six Months‘ on 15 April 2020.
This debate assessed the learnings from the latest macro-economic scenarii, discussing how European economies are likely to look like in six months from now. In particular, the discussion focused on the challenges for Europe’s banking system imposed by the pandemic and the financial measures undertaken by governments, addressing the question of which policies are needed to prevent market fragmentation and ring-fencing.
This online event, moderated by Elena Carletti (Bocconi University, Florence School of Banking and Finance, and Unicredit), featured as speakers selected high-profile professionals in the banking and financial sector, including Andrea Federico (Partner at Oliver Wyman), Michala Marcussen (Chief Economist, Societe Generale), Erik Fossing Nielsen (Group Chief Economist and Global Head of CIB Research at Unicredit) and Jörg Zeuner (Chief Economist of Union Investment).
The discussion started with an overview of the role of banks in sustaining the economy. Their importance in ensuring financing to firms, as well as their possible actions in face to the supervisory measures adopted post COVID-19, were also addressed. In a second moment, speakers tackled the question of debt sustainability, raised by the substancial increase in debt levels that are likely to arise as a consequence of the crisis.
Finally, the debate was closed by a discussion on the European level and the possible actions that can guarantee a level playing field. Speakers provided their assessment of the current policies and their view of the actions and instruments that are needed for the post-virus recovery phase.