Models for Financial Stability and Prudential Policy
This course presents the concepts, principles and models underlying prudential regulation of banks and studies how they have to be modified to deal with systemic risk and contagion. It discusses the use of lenders of last resort as a way to reduce systemic risks, contagion and transmission of balance sheet imbalances and other measures for bank resolution that shield the banking system from generalized crises and runs.
The course will feature lectures and applications to real life situations.
- The objectives of prudential regulations
- Capital regulation for banks: static and dynamic models
- Bank runs and the Lender of Last Resort
- Systemic risk and contagion
- Bank resolution and Total Loss Absorbing Capacity
What you will learn
- You will learn the objectives of macro-prudential regulation.
- You will learn how to design aggregate models of financial stability.
- You will get an understanding of recent academic research on systemic risk.
Meet the instructors
Jean-Charles Rochet is SFI Professor of Banking in the Banking and Finance Institute at Zürich University. He has also taught in Paris, London (B.P. visiting professor, London School of Economics, 2001-02), and Toulouse (1988-2011). Professor Rochet has visited many universities and central banks all over the world. He is a Fellow of the Econometric Society since 1995 and has been elected Vice President for 2011 and President in 2012). He has also been council member of European Economic Association, and associate editor of Econometrica. He has written more than 60 articles in international scientific journals and 7 books , including Microeconomics of Banking (with X. Freixas, MIT Press), When Insurers Go Bust (with G. Plantini, Princeton UP), Why are there so Many banking Crises? (Princeton UP) and Risk Management in Turbulent Times (with G.Beneplanc, Oxford UP). His research interests include financial stability, payments economics, industrial organization of financial markets, risk management, contract theory, and solvency regulations for financial institutions.
Bruno M. Parigi is Professor of Economics, University of Padova, Italy. His research interests are in banking and financial economics. He has published in various journals among which the Journal of Money Credit and Banking, the Journal. of Banking and Finance, the Journal of Financial Intermediation, and the Journal of Economic Theory. He has been consultant for many central banks among which New York Fed, ECB, BIS, and he has held visiting positions at the University of Toulouse, the European University Institute, the University of Zurich, and the University of Munich. He received his Ph.D. in Economics from Rutgers University.
A BA or MA degree in Economics or Finance is required to attend this course.
Participants are expected to have a background in economics, prior knowledge of basic banking and finance models and understanding of dynamic optimization and of basic simulation techniques.
1750€ – Public Authorities (e.g. National Competent Authorities, Central Banks and European Institutions).
1900€ – 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 email@example.com before registering. FBF secretariat will provide you with a code to register. *Seats for academics are limited and assigned by the FBF secretariat on a case-by-case basis.
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 firstname.lastname@example.org
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
- Restaurant Accademia – Ph. +39 055 217343
- Restaurant Cucina Torcicoda – Ph. +39 055 265 4329
- Finisterrae – Ph. +39 0552638675
- Il Vezzo – Ph. +39 055 281096
- Osteria di Giovanni – Ph. + 39 055 284897
On arrival, participants will be provided with temporary wi-fi access for the whole duration of the course.
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:
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).
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.
Course materialRegistered participants can access the course material using the password provided by the FBF secretariat.