Central bank reserves: Implications for monetary policy, financial stability and regulation

17 September 2025 | Basel, Switzerland

About the conference

The 13th BIS Research Network Conference took place on 17 September 2025, bringing together researchers from academia and central banks. The conference focused on the implications of central bank reserves for monetary policy, financial stability, and regulation.

  • Fiorella De Fiore (BIS)
  • Mathias Drehmann (BIS)
  • Hyun Song Shin (BIS)

Conference materials

Hyun Song Shin (Bank for International Settlements)

Chair 

Hyun Song Shin (Bank for International Settlements)

Commentary 

Wenxin Du (Harvard Business School), presentation

Speaker

Enrique G Mendoza, (University of Pennsylvania), presentation

Paper 1: Macro-financial implications of the surging global demand and supply of international reserves
(with Vincenzo Quadrini, University of Southern California)

Speaker

Marc Flandreau (University of Pennsylvania), presentation

Paper 2: Central bank equity and foreign exchange reserves: Evidence from the sterling crisis 
(with Leonardo Gambacorta, Yi Huang, Hyun Song Shin and Pablo Zbinden)

Speaker

Andreas Schrimpf (Bank for International Settlements), presentation

Paper 3: Global portfolio investments and FX derivatives
(with Hyun Song Shin and Tsvetelina Nenova)

Chair 

Benoit Mojon (Bank for International Settlements)

Commentary 

Ricardo Reis (London School of Economics), presentation

Speaker

Gastón Navarro (Board of Governors of the Federal Reserve System), presentation

Paper 4: Monetary policy operations: Theory, evidence, and tools for quantitative analysis 
(with Ricardo Lagos, New York University)

Speaker

Gabriele La Spada (Federal Reserve Bank of New York), presentation

Paper 5: The optimal supply of central bank reserves under uncertainty
(with Gara Afonso, Thomas Mertens and John Williams)

Speaker

Mauricio Salgado-Moreno (Bank of England), presentation

Paper 6: Quantitative easing and quantitative tightening: the money channel 
(with Michael Kumhof)

Chair 

Gaston Gelos (Bank for International Settlements)

Commentary 

Franklin Allen (Imperial College London), presentation

Speaker

Agnese Leonello (European Central Bank), presentation

Paper 7: Bank fragility and risk management
(with Toni Ahnert, European Central Bank, Christoph Bertsch, Sveriges Riksbank and Robert Marquez, University of California, Davis)

Speaker

Dirk Niepelt (University of Bern), presentation

Paper 8: Pricing liquidity support: A PLB for Switzerland
(with Cyril Monnet and Remo Taudien)

Speaker

Josef Schroth (Bank of Canada), presentation

Paper 9: Bank regulation, monetary policy and banks' supply of liquidity services

Chair 

Frank Smets (Bank for International Settlements)

Commentary 

Kristin Forbes (Massachusetts Institute of Technology), presentation

Speaker

Sharon Ross (Board of Governors of the Federal Reserve System), presentation

Paper 10: Where collateral sleeps 
(with Gary B Gorton, Yale University and Chase Ross, Board of Governors of the Federal Reserve System)

Speaker

Quentin Vandeweyer (The University of Chicago Booth School of Business)

Paper 11: The central bank's balance sheet and Treasury market disruptions
(with Adrien d'Avernas, Stockholm School of Economics and Damon Petersen, Massachusetts Institute of Technology)

Speaker

Alexandros Vardoulakis (Board of Governors of the Federal Reserve System), presentation

Paper 12: QE, bank liquidity risk management, and non-bank funding: evidence from administrative data
(with Matthew Darst, Board of Governors of the Federal Reserve System, Sotirios Kokas, University of Essex, Alexandros Kontonikas, University of Essex and Jose-Luis Peydro, Imperial College London & CEPR)