The Andrew Crockett Memorial Lecture and panel discussion

The Andrew Crockett Memorial Lecture, delivered by Professor Amit Seru (Steven and Roberta Denning Professor of Finance, Stanford Graduate School of Business), on the occasion of the Bank's Annual General Meeting, Basel, 30 June 2019.

BIS speech  | 
30 June 2019

The Andrew Crockett Memorial Lecture

Regulating banks in the era of fintech shadow banks (00:46:55)

Lecture delivered by Amit Seru, Steven and Roberta Denning Professor of Finance, Stanford Graduate School of Business 

Chairman: Jens Weidmann, Chairman of the Board, BIS and President, Deutsche Bundesbank

Abstract

Intermediation in the lending market has undergone a dramatic shift from traditional banks to shadow banks, ie non-depository institutions that fall outside the scope of traditional banking regulation. Professor Seru traces the growth of shadow banks to the increased regulatory burden faced by traditional banks and to the financial technology adopted by shadow banks. He argues that these factors explain changes in credit markets around the globe. Assessing financial stability in this new era involves understanding the business model of fintech shadow banks and traditional banks, the industrial organization of the credit market and the equilibrium interaction of intermediaries. Professor Seru concludes by illustrating and emphasizing that a regulatory policy analysis requires the impact of the policy on banks and shadow banks to be analyzed side by side.

Panel discussion

Panel discussion (01:05:57)

Chairman: Jens Weidmann, Chairman of the Board, BIS and President, Deutsche Bundesbank

Panellists: Alejandro Díaz de León Carrillo, Governor, Bank of Mexico, Thomas Jordan, Chairman of the Governing Board, Swiss National Bank, Lesetja Kganyago, Governor, South African Reserve Bank, Yi Gang, Governor, People's Bank of China