Tuesday, January 28, 2025
Hoover Institution | Stanford University
Leading experts in financial regulation from the Hoover Institution and the Centre for Economic Policy research share insights on what factors precipitated the turmoil the banking system experienced in 2023.
Authors Stijn Claessens (Yale School of Management and CEPR) and Amit Seru (Hoover Institution and CEPR) will present the key findings of the 27th Geneva Report on the World Economy, Much Money, Little Capital, and Few Reforms: The 2023 Banking Turmoil.
The report highlights that despite much post-global financial crisis reform, large funding vulnerabilities emerged due to expansionary monetary policies, particularly in the U.S. As interest rates rose, these fragilities triggered solvency concerns and led to large liquidity withdrawals last year. These fragilities persist due to incomplete regulations. Structural inefficiencies in banking systems remain significant, notably in Europe, with many banks lowly valued. And globally the resolution regime for systemic banks proved to be inadequate. To address these challenges, the report calls for more integrated economic and financial stability policies, more capital, improved supervisory powers and coordination, and more robust recovery and resolution regimes.
SPEAKERS
Stijn Claessens, Executive Fellow, Yale School of Management Centre for Economic Policy Research
Amit Seru, Senior Fellow, Hoover Institution Steven and Roberta Denning Professor of Finance, Stanford GSB Centre for Economic Policy Research
Ross Levine, Booth Derbas Family/Edward Lazear Senior Fellow, Co-director of the Financial Regulation Working Group, Hoover Institution
Stephen Haber, Peter and Helen Bing Senior Fellow, Director of the Hoover Prosperity Program, Hoover Institution
RELATED RESOURCES
Much Money, Little Capital, And Few Reforms: The 2023 Banking Turmoil
https://mcusercontent.com/7046fbb6a266698a26deb9599/files/bdb03493-9eb8-962b-c41a-38681c7d50ff/212212_geneva_27_much_money_little_capital_and_few_reforms_the_2023_banking_turmoil.01.pdf
Hoover Institution Financial Regulation Working Group
https://www.hoover.org/research-teams/financial-regulation-working-group
Hoover Prosperity Program
https://www.hoover.org/research-teams/hoover-prosperity-program
Centre for Economic Policy Research
https://cepr.org/
ABOUT THE SERIES
About the Hoover Institution Financial Regulation Working Group
Which financial regulatory reforms promote economic prosperity? And why do societies find it so difficult to create financial systems that are both efficient and stable? The Working Group on Financial Regulation convenes an interdisciplinary network of scholars from economics, finance, law, political science, and history. Our goal is to spur research addressing these pivotal questions and disseminate the findings to the research community, policymakers, and the wider public. The Financial Regulation Working Group is an initiative of the Hoover Prosperity Program.
About the Hoover Prosperity Program
The Hoover Prosperity Program conducts evidence-based research on the institutions and policies that foster economic prosperity amid today’s public policy challenges. The goal of the program is to advance the state of knowledge so that citizens and public officials can make informed decisions about a core question: what set of laws, policies, and regulations are most likely to insure a prosperous future?
