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Third BIS CCA Research Conference on "Financial stability, financial regulation and monetary policy"

26–27 April 2012 | Rio de Janeiro, Brazil

About this conference

On 26-27 April 2012 the BIS held a conference (see agenda below) on "Financial stability, financial regulation and monetary policy", the third under the auspices of the BIS Consultative Council for the Americas (CCA). It brought together researchers from the central banking community in the region and distinguished academics and was hosted by the Central Bank of Brazil in Rio de Janeiro.

  • Jorge Carrera (Central Bank of Argentina) 
  • Adriana Soares Sales (Central Bank of Brazil) 
  • Allan Crawford (Bank of Canada) 
  • Luis Oscar Herrera (Central Bank of Chile)
  • Hernando Vargas (Bank of the Republic - Colombia)
  • Alberto Torres (Bank of Mexico)
  • Adrián Armas (Central Reserve bank of Perú)
  • Thomas Connors and Michael Leahy (Board of Governors of the Federal Reserve System) 
  • Stephen G. Cecchetti (BIS Economic Adviser and Head of the Monetary and Economic Department)

  • Fernando Avalos (Senior Economist at the BIS) 
  • Ramon Moreno (Head of Economics for Latin America and the Caribbean at the BIS)

A Scientific Committee, led by Stephen G Cecchetti, and comprising CCA central bank heads of research, selected papers on the following topics:

  1. Systemic risk: measurement, policy responses (eg capital surcharges, liquidity and contagion in the banking system) and sectoral concerns (eg household debt and default probability); 
  2. Financial cycles in EMEs (eg pro-cyclicality of bank capital and behaviour, activity measures as a guide to countercyclical decision making); 
  3. Macroeconomic shocks and financial stability (eg exchange rate or terms of trade volatility, financial stability, and the real sector)

  1. Impact of macro-prudential regulation on banking system structure and behaviour; 
  2. Effects of Basel III in EMEs (eg capital markets development and liquidity, bank behaviour and efficiency); 
  3. Interaction between macro-prudential regulation and monetary policy (eg policy options to confront the interactions between exchange rates, terms of trade and capital flows)

Day 1 - 26 April

Chair Adriana Soares Sales, Central Bank of Brazil

In the quest of macroprudential policy tools

Daniel Sámano Peñaloza (Bank of Mexico) | Presentation 

Discussant: Carlos Montoro, Bank for International Settlements | Presentation

Interbank market and macroprudential tools in a DSGE model

César Carrera and Hugo Vega (Central Reserve Bank of Peru) | Presentation

Discussant: Skander van den Heuvel, Board of Governors of the Federal Reserve System | Presentation

Chair Luis Herrera, Central Bank of Chile

The cyclical behaviour of bank capital buffers in an emerging economy: size does matter

Andrés Felipe García-Suaza (Universidad del Rosario), José E. Gómez-González, Andrés Murcia Pabón, and Fernando Tenjo-Galarza (Bank of the Republic - Colombia) | Presentation

Discussant: Emanuel Kohlscheen (Central Bank of Brazil) | Presentation

The relationship between banking market competition and risk-taking: do size and capitalization matter?

Benjamin M. Tabak (Central Bank of Brazil), Dimas M. Fazio (Universidade de São Paulo) and Daniel O. Cajueiro (Universidade de Brasília) | Presentation

Discussant: José Eduardo Gómez González (Bank of the Republic - Colombia) | Presentation

Day 2 - 27 April

Chair Alberto Torres, Bank of Mexico

International business cycles and financial frictions

Wen Yao (Bank of Canada) | Presentation

Discussant: Michael Devereux, University of British Columbia | Presentation

When the rivers run dry: liquidity and the use of wholesale funds in the transmission of the U.S. subprime crisis

Claudio Raddatz (Central Bank of Chile) | Presentation

Discussant: Nicola Cetorelli, Federal Reserve Bank of New York | Presentation

The cross-market spillover of economic shocks through multi-market banks

José Berrospide, Lamont Black (Board of Governors of the Federal Reserve System), and William Keeton (Federal Reserve Bank of Kansas City) | Presentation

Discussant: Günseli Tümer-Alkan, VU Amsterdam | Presentation

Overview and Discussion (Stephen G. Cecchetti, BIS) | Paper