Accounting, Transparency and Bank Stability

May 2004

A joint workshop hosted by the Basel Committee on Banking Supervision, the Centre for Economic Policy Research (CEPR), and the Journal of Financial Intermediation.

 
8.30   Opening Remarks by Malcolm Knight (Bank for International Settlements)
8.50   Session 1: Capital Adequacy Regulation
Chair: Patricia Jackson (Bank of England)
8.50   Liquidity Risk and Contagion (PDF, 31 pages, 250 kb)
  Rodrigo Cifuentes (Central Bank of Chile)
  Gianluigi Ferrucci (Bank of England)
  Hyun Song Shin (London School of Economics)
9.30   Discussion by Anjan Thakor (Washington University) (PDF, 9 pages, 27 kb)
  Discussion by Philipp Hartmann (European Central Bank) (PDF, 13 pages, 252 kb)
  General discussion
10.00   Financing Choices of Banks: The Role of non-Binding Capital Requirements (PDF, 32 pages, 314 kb)
  Jie Gan (Hong Kong University of Science and Technology)
10.40   Discussion by Rafael Repullo (CEMFI and CEPR) (PDF, 14 pages, 120 kb)
  Discussion by Júrg Blum (Swiss National Bank) (PDF, 7 pages, 41 kb)
  General discussion
11.40   Procyclicality in Basel II: Can we Treat the Disease Without Killing the Patient? (PDF, 30 pages, 193 kb)
  Michael Gordy (Board of Governors of the Federal Reserve System)
  Bradley Howells (Board of Governors of the Federal Reserve System)
12.20   Discussion by Charles Goodhart (London School of Economics) (PDF, 11 pages, 19 kb)
  Discussion by Claudio Borio (Bank for International Settlements) (PDF, 13 pages, 212 kb)
  General discussion
14.10   Session 2: Accounting Standards, Disclosure and Relationship Banking
  Chair: Anjan Thakor (Washington University and JFI)
14.10   Accounting Standards and Information Inferences from Cross Listed Financial Firms
  John Ammer (Board of Governors of the Federal Reserve System)
  Nate Clinton (Board of Governors of the Federal Reserve System)
  Greg Nini (Board of Governors of the Federal Reserve System)
14.50   Discussion by Jean Dermine (INSEAD)
  Discussion by Erlend Nier (Bank of England) (PDF, 12 pages, 21 kb)
  General discussion
15.20   Playing Hardball: Relationship Banking in the Age of Credit Derivatives (PDF, 36 pages, 300 kb)
  Stefan Arping (University of Amsterdam)
16.00   Discussion by Ernst-Ludwig von Thadden (Université de Lausanne, CEPR, NCCR FinRisk and JFI) (PDF, 9 pages, 33 kb)
  Discussion by Pierre Monnin (Swiss National Bank) (PDF, 6 pages, 17 kb)
  General discussion
16.50   Relationship Lending, Accounting Disclosure and Credit Availability During Crisis (PDF, 47 pages, 161 kb)
  Wenying Jiangli (Federal Deposit Insurance Corporation)
  Haluk Unal (University of Maryland)
  Chiwon Yom (Federal Deposit Insurance Corporation)
17.30   Discussion by Ralf Elsas (University of Frankfurt) (PDF, 8 pages, 163 kb)
  Discussion by Reint Gropp (European Central Bank) (PDF, 13 pages, 21 kb)
  General discussion
19.00   Remarks by Mr Jaime Caruana, Governor of the Bank of Spain and Chairman of the Basel Committee on Banking Supervision
 
Tuesday 18 May
 
8.30   Session 3: Information, Innovation and Transparency
  Chair: Ernst-Ludwig von Thadden (Université de Lausanne, CEPR, NCCR FinRisk and JFI)
8.30   Do Sophisticated Investors Understand Accounting Quality? Evidence from Bank Loans (PDF, 50 pages, 167 kb)
  Sreedhar T. Bharath (University of Michigan)
  Jayanthi Sunder (Northwestern University)
  Shyam V. Sunder (Northwestern University)
9.10   Discussion by Mark Flannery (University of Florida) (PDF, 14 pages, 61 kb)
  Discussion by Joao Santos (Federal Reserve Bank of New York) (PDF, 8 pages, 39 kb)
  General discussion
9.40   Screening Cycles (PDF, 46 pages, 253 kb)
  Thomas Gehrig (University of Freiburg)
  Rune Stenbacka (Swedish School of Economics)
10.20   Discussion by Javier Suarez (CEMFI)
  Discussion by Ingrid Stein (Deutsche Bundesbank) (PDF, 3 pages, 82 kb)
  General discussion
11.20   Loan-Portfolio Quality and the Diffusion of Technological Innovation (PDF, 33 pages, 298 kb)
  Robert Hauswald (American University)
  Robert Marquez (University of Maryland)
12.00   Discussion by Arnoud Boot (University of Amsterdam) (PDF, 7 pages, 29 kb)
  Discussion by Urs Birchler (Swiss National Bank) (PDF, 23 pages, 76 kb)
  General discussion
14.00   Session 4: Market Discipline: Issues and Evidence
  Chair: Claudio Borio (Bank for International Settlements)
14.00   Market Discipline under Systemic Risk: Evidence from Bank Runs in Emerging Economies (PDF, 49 pages, 252 kb)
  Eduardo Levy-Yeyati (University Torcuato di Tella)
  Maria Soledad Martinez Peria (World Bank)
  Sergio L. Schmukler (World Bank)
14.40   Discussion by Solomon Tadesse (University of South Carolina) (PDF, 14 pages, 56 kb)
  Discussion by Laura Kodres (IMF) (PDF, 18 pages, 35 kb)
  General discussion
15.10   Testing the Strong-Form of Market Discipline: The Effects of Public Market Signals on Bank Risk (PDF, 40 pages, 128 kb)
  Simon Kwan (Federal Reserve Bank of San Francisco)
15.50   Discussion by Loriana Pelizzon (University of Padova and GRETA) (PDF, 15 pages, 61 kb)
  Discussion by Edward Prescott (Federal Reserve Bank of Richmond)
  General discussion
16.40   Disclosure, Volatility and Transparency: An Empirical Investigation into the Value of Bank Disclosure (PDF, 22 pages, 102 kb)
  Ursel Baumann (Bank of England)
  Erlend Nier (Bank of England)
17.20   Discussion by Olivier Scaillet (University of Geneva) (PDF, 1 page, 102 kb)
Discussion by Diana Hancock (Board of Governors of the Federal Reserve System) (PDF, 12 pages, 247 kb)
  General discussion
17.50   Closing remarks by Urs Birchler (Swiss National Bank)
18.00   End of Workshop

Workshop Organisers:

  • Urs Birchler (Swiss National Bank)
  • Martin Birn (Basel Committee Secretariat)
  • Mark Flannery (University of Florida)
  • Reint Gropp (European Central Bank)
  • Rafael Repullo (CEMFI and CEPR)
  • Ernst-Ludwig von Thadden (Université de Lausanne, CEPR, NCCR FinRisk and JFI)
  • Anjan Thakor (Washington University)

Financial support by the national centre of competence in research «Financial valuation and risk management» is gratefully acknowledged. The national centres of competence in research are managed by the Swiss National Science Foundation on behalf of the Federal Authorities.