Financial Regulation and Shadow Banking
- Roots of business and credit cycles
- Bank leverage and endogenous risk
- Financial recessions
- Capital regulations and TLAC
- Bank resolution and recovery
- Maturity transformation and liquidity regulation
- Shadow banking
Why this course
This two-day course by top finance professors of the University of Amsterdam covers the economic foundations for financial regulation and prudential policy, offering a guide on the evolving microprudential legislation and macroprudential policy targeting structural vulnerabilities associated with modern intermediation channels.
The course illustrates the insights underlying the novel approach by bank regulators and central banks since the financial crisis of 2007-2008. It covers the novel Basel III and FSB legislation on capital requirements and liquidity risk for banks and shadow banks. The philosophy of countercyclical policy based on explicit models of risk incentives resonates throughout the course.
Who is the training for?
Financial Stability officers, Research department officers, Ph.D. students, Research department of private banks, EBA, SSM, SRB, ESBR, EU officials.
The course requires an intermediate knowledge of banking. From that foundation it elaborates the economic concepts underlying the novel regulatory approach of Basel III and recent FSB regulations. It will be useful for executives involved in bank regulation and compliance, and graduate students interested in regulatory and central banking policy. It will be also valuable for students interested in business cycles and macro financial analysis.
Meet the course instructors
Enrico Perotti (PhD in Finance at MIT, 1990) is Professor of International Finance at the University of Amsterdam. His broad research output has appeared in the top journals in economics, finance and law. He has been a frequent guest to the IMF, Federal Reserve Board and ECB Visiting Scholar programs. Since 2009 he acted as senior advisor on banking and financial regulation to the European Commission, Federal Reserve Board, ECB, DNB and the Bank of England. He visited the Bank of England in 2011-12 as Houblon-Normal Fellow and the ECB in 2015 as Wim Duisenberg Fellow.
Tanju Yorulmazer is the Optiver Associate Professor of Finance at the University of Amsterdam. He holds a Ph.D. in Economics from New York University. He has worked at the Bank of England (2003-2007) and the Federal Reserve Bank of New York (2007-2014). His research interests span areas such as banking, financial crises, regulation, the role of central banks in preventing and managing crises, liquidity, asset prices, contagion and systemic risk. His research has been published in prestigious journals such as the Journal of Finance and the Review of Financial Studies. He is a regulator visitor at major international policy institutions and central banks.
1500 € – Public Authorities (e.g. National Competent Authorities, Central Banks) and European Institutions*
2000€ – Private Sector
850€ – Students (with certificate of studies)
* In case of registration of 3 participants from the same institution, a reduced fee of € 1000 is applied for each of them, under the following conditions:
- the names of the 3 participants have to be communicated to email@example.com before registering
- the names of other registered people from the same institution cannot be communicated. It is upon your responsibility to get in touch with your HR division
- a single debit note will be issued for the 3 participants followed by one payment
Practical Information for the registered participantsTravel and Accomodation
Participants are asked to make their own travel and hotel arrangements.Course materials
All essential material will be supplied in advance by the instructors, and there will be some advance required reading. Some additional content will be distributed during the lessons.Location
The training will take place at the modern facilities of the Amsterdam Business School at the University of Amsterdam, centrally located and easily reachable by metro, tram or bicycle. Full address:
Plantage Muidergracht 12
1018 TV Amsterdam
Registered participants can download the reading materials on this page, using the password provided by the course secretariat.a
List of readings
Background reading for the sessions led by Enrico Perotti
- Report to the European Commission on the perimeter of credit institutions established in the Member States. EBA Report, 27 November 2014
- Steven L. Schwarcz, The Governance Structure of Shadow Banking: Rethinking Assumptions About Limited Liability. Notre Dame Law Review Vol. 90:1, 2014
- Eddy Wymeersch, Shadow banking and Systemic risk. EBI Working Paper Series no. 1, 2017
- Martin Wolf, Beware of the liquidity delusion. Financial Times, 6 October 2015
- Marco Cipriani, Gabriele La Spada, and Philip Mulder, The Effect of the New SEC Regulation on Money Market Funds. Forthcoming, 2017.
- J. David Cummins, Mary A. Weiss, Systemic Risk and the US Insurance Sector. The Journal of Risk and Insurance, 2014, Vol. 81, No. 3, 489–527
- Sam Hanson, David Scharfstein, Adi Sunderam, An Evaluation of Money Market Fund Reform Proposals. Harvard University, May 2014
- Enrico Perotti, The roots of shadow banking. VoxEU, 16 January 2014.
Reading material for the sessions led by Iman van Lelyveld
- A general introductory booklet on how Central Counterparties function, DNB (2013)
- Abad et al., An overview of the European OTC derivatives markets ESRB Occasional Paper Series, 2016
- Paul Glasserman and Qi Wu, Article on the prociclicality of margining, Office of Financial Research, 2017
- Shan et al., An article on how CDSs are affecting markets, 2014. Do not read this paper in full detail; it is just illustrating one channel of connection.
- More background information is available in the list downloadable from the password-protected page accessible by course participants