26th Conference on Globalization: Banks, financial stability and globalization
The global financial crisis, which began in the United States in 2007, revealed flaws in the U.S. and European banking systems. In the beginning, states intervened to contain the crisis and structural reforms were gradually imposed following this, particularly under the authority of the G20. To stop the continued turbulence in 2011 and in 2012, and against the backdrop of the euro area crisis, the banks’ rigor is being strengthened by improving their capital bases. Intense debates this spring between bankers and regulators, between Europeans and Americans, and among Europeans themselves on the outlines of the new cautionary rules known as "Basel III", showed how difficult and highly technical the task ahead is. Greater financial stability is expected with the improvement of these funds. In addition, liquidity ratios and a cap on leverage will also add to this stability.
26th Conference on Globalization:
Banks, financial stability and globalization
Wednesday, June 27th 2012 from 5:00 p.m. to 7:30 p.m.
Sciences Po - Amphitheatre Jacques Chapsal
27, rue Saint-Guillaume - 75007 Paris
Another issue is what model is most appropriate to use. “Megabanks" have emerged ever since a deregulation process of banking activities began in the 1980s. Privatization, disintermediation processes, financial globalization, and the introduction of the euro strengthened this development. The size of these institutions, which its supporters claimed would strengthen the institutions' rigor and financial stability, and their tendency to engage in riskier and more volatile economic activities, are now subject to criticism. In order to remove any undue risk, is splitting retail business and investment, which would be end of universal banking, the only safeguard? Will this lead remaining national retail banks and investment banks with a European or global dimension to combine?
The central banks are also concerned. The People’s Bank of China and the six central banks of major developed economies (U.S., Europe, Japan, Canada, Switzerland, and England) intervened in 2011 to contain the financial and economic crisis, which now exceeds the borders of the euro area. The European Central Bank (ECB) has distinguished itself by distributing more than 1,000 billion euros in loans to financial institutions in the course of three months, offset by a wider range of assets. These exceptional measures have fueled a debate around the ECB’s mission. Should it become a lender of last resort and make growth, in addition to price stability, its objective like the Federal Reserve?
Ultimately, the question is how to maintain a flow of credit to the real economy. In France, the financing of SMEs and mid-cap companies is a fundamental issue. What are methods for long-term financing, particularly in view of growing "shadow banking", that could solve this issue? What paths will regulators take parallel to this?
Please note, registration will be first come first served and will be subject to availability
- Opening by Vincent Chriqui, Director General of the Centre d’analyse stratégique
With, in order of appearance:
- Laurent Clerc, head of financial stability at the Bank of France: "Banks and financial stability: the challenge of Basel III"
- Philippe Dessertine, Chairman of Citigroup France: "What business model should be used for banks?"
- Dominique Pilhon, professor of economics at the University Paris-XIII-North "Central banks, new deus ex machina?"
- Jean Peyrelevade, chairman of the investment bank Leonardo France and former chairman of Crédit Lyonnais: "What long-term financing options for the future? "
- Conference chaired by: Jézabel Couppey-Soubeyran, lecturer at the University of Paris I Pantheon-Sorbonne and scientific advisor to the Council of Economic Analysis (CAE)