Systemic Risk Centre
Lead Research Organisation:
London School of Economics and Political Science
Department Name: Systemic Risk Centre
Abstract
One of the most important parts of the UK economy is the financial system. While it brings considerable economic benefits, it is also a source of significant risks to the UK economy as the crisis in 2008 demonstrated. It is of considerable importance for the UK to manage the risk of and to the financial system while reaping the substantial benefits, and the study of the resulting issues is of great interest to academia, policymakers, the finance sector and the general population.
The work of the SRC is based on the view that all financial risk of note is endogenous. What this means is that significant risk is created by the interaction of the human beings that make up the financial system, all with their own biases and resources prejudices and abilities. These interactions are modulated and amplified by rules, regulations, institutions and behavioural rules. By viewing the system via the lens of endogenous risk, the SRC is able to find unique insights into the nature of financial stability, identifying what policies work and don't work and meanwhile bring the academic understanding and financial stability forward.
The work has two main branches, understanding the drivers of endogenous risk (including uncertainty and networks) on one hand and doing something about it (macroprudential policies) on the other hand.
The first is models and uncertainty. The economist Frank Knight proposed a delineation of risk as separate from uncertainty. Risk is what can be measured and quantified and modelled with the statistical distributions. Uncertainty is none of these things. It captures the factors we know affect decision-making but cannot be quantitatively described with any great degree of accuracy, not least because risk is endogenous and subject to unexpected feedback loops. By viewing statistical models as capturing either risk or uncertainty, one gains significant intuition into the reliability of models for policymaking. The SRC is uniquely able to do this because it has access to a database on derivatives used for the internal validation of models within the financial industry, and will use that data to create new methods for uncertainty in decision-making. The SRC also has unique capabilities of connecting such uncertainty to the way the resulting behaviour endogenously results in certain connections and pathways through which risks build up and propagate.
The second branch on management of risk is macroprudential policies and procyclicality. Macroprudential policies or macropru, is the formal name given to government policies aiming to contain the endogenous risk emanating from the financial system. It is of primary importance and has a considerable focus within policymaking bodies such as the Bank of England. The aim of this research is to go into two related directions: to expand the academic knowledge of financial stability and systemic risk and to create practical methods to impact on policymaking. This branch has four sub streams. First, what is known as fintech, or financial technology, where the SRC will focus on technologies such as crypto currencies and blockchain and how that affects the stability of the financial system, including how those technologies can be used to mitigate risk. The second is research on the drivers on procyclicality, the deep forces that amplify the financial cycles, creating booms and busts. The third sub stream focuses on the political limitations to implement effective policies and how the structure of the political system, including the degree of democracy, affect the ability to implement effective policies. The final stream is on the forward-looking indicators of systemic risk. This builds on existing research at the SRC, but also incorporates the development of new theories and identification of empirical methodologies.
The work of the SRC is based on the view that all financial risk of note is endogenous. What this means is that significant risk is created by the interaction of the human beings that make up the financial system, all with their own biases and resources prejudices and abilities. These interactions are modulated and amplified by rules, regulations, institutions and behavioural rules. By viewing the system via the lens of endogenous risk, the SRC is able to find unique insights into the nature of financial stability, identifying what policies work and don't work and meanwhile bring the academic understanding and financial stability forward.
The work has two main branches, understanding the drivers of endogenous risk (including uncertainty and networks) on one hand and doing something about it (macroprudential policies) on the other hand.
The first is models and uncertainty. The economist Frank Knight proposed a delineation of risk as separate from uncertainty. Risk is what can be measured and quantified and modelled with the statistical distributions. Uncertainty is none of these things. It captures the factors we know affect decision-making but cannot be quantitatively described with any great degree of accuracy, not least because risk is endogenous and subject to unexpected feedback loops. By viewing statistical models as capturing either risk or uncertainty, one gains significant intuition into the reliability of models for policymaking. The SRC is uniquely able to do this because it has access to a database on derivatives used for the internal validation of models within the financial industry, and will use that data to create new methods for uncertainty in decision-making. The SRC also has unique capabilities of connecting such uncertainty to the way the resulting behaviour endogenously results in certain connections and pathways through which risks build up and propagate.
The second branch on management of risk is macroprudential policies and procyclicality. Macroprudential policies or macropru, is the formal name given to government policies aiming to contain the endogenous risk emanating from the financial system. It is of primary importance and has a considerable focus within policymaking bodies such as the Bank of England. The aim of this research is to go into two related directions: to expand the academic knowledge of financial stability and systemic risk and to create practical methods to impact on policymaking. This branch has four sub streams. First, what is known as fintech, or financial technology, where the SRC will focus on technologies such as crypto currencies and blockchain and how that affects the stability of the financial system, including how those technologies can be used to mitigate risk. The second is research on the drivers on procyclicality, the deep forces that amplify the financial cycles, creating booms and busts. The third sub stream focuses on the political limitations to implement effective policies and how the structure of the political system, including the degree of democracy, affect the ability to implement effective policies. The final stream is on the forward-looking indicators of systemic risk. This builds on existing research at the SRC, but also incorporates the development of new theories and identification of empirical methodologies.
Planned Impact
Deeper understanding of financial models and their problems significantly influences the effectiveness of financial regulations. Non-academic beneficiaries are the Bank of England (BoE), the Treasury, its international counterparts (like the Banque de France and European Central Bank), and supra-national organisations like the Financial Stability Board, Bank for International Settlements (BIS) and International Monetary Fund (IMF). We already work with the IMF and BoE on stress-testing and this research will incorporate the procyclical feedback of shocks on models and network connections, followed by further forced sales leading to losses and avoidable uncertainty. CI Zigrand sits on the BoE Macroprudential Advisory Panel. Model uncertainty and interconnectedness are crucial in the design of macroprudential tools, and the BoE is actively exploring this work with us. Policymakers seek research that condenses vast data into signals for early warning signs of group-think or of dangerous disagreement.
The CIs advise government, policymakers, including select committees and EU bodies, extensively in this area. We are confident that the future regulatory agenda both in the UK and elsewhere will bring with it many opportunities where academic excellence will bring much needed evidence to the policy making process.
The research will benefit the private sector, including pension funds, asset managers, sovereign wealth funds, banks and other financial institutions that take risk for clients or for their own books and need to understand how such risks depend on financial models and on the homogeneity of models and holdings. They will see how models interact in adverse situations and how the connectivity structure can amplify shocks, and may help them in avoiding events like the 2007 quant crisis when quant funds realised that many more were operating under the same models, strategies and funding constraints. Providers of financial information, e.g. IHS Markit, will be able to develop new products providing valuable information and early-warning systems for financial instability to their private users.
The SRC maintains an excellent network of policymakers, incl. BoE (Andy Haldane, chief economist and executive director, Alex Brazier, executive director financial stability), ECB (Vitor Constâncio, Vice-President; Yves Mersch, Member of Executive Board), IMF (Miguel Segoviano, European Department), BIS (Hyun Song Shin, Economic Adviser and Head of Research) and private companies in the financial sector, incl. Aviva (Angela Darlington, Chief Risk Officer), AXA (Christian Thimann, Group Head), Deutsche Bank (Stuart Lewis, Chief Risk Officer), J.P. Morgan (Olivier Vigneron, Chief Risk Officer EMEA and Firmwide Risk Executive for Market Risk), Blackrock, Deutsche Börse (Kengeter, CEO), IHS Markit (Lance Uggla, President) who have an interest in systemic risk, expressed in their interactions with us.
Apart from these lead users, we also like to appeal to the end-users. In a time of uncertainty and regulatory changes, with more similarity in regulation for banks, insurers, asset managers, increased marking-to-market and margining and ringfencing of retail banking arms, the right diversity of models and connections in finance will be essential to the well functioning of financial flows to their most productive uses. The research into diversity of models will positively affect the prosperity and stability of the City of London and the UK in general by showing the extent to which different financial actors in the UK are needed to contribute to a stable financial eco-system and by providing tools to regulators and actors to monitor this diversity and make it a force for good.
Our research is disseminated in many different ways, leading to valuable feedbacks and on-going relationships. Over the last few years, our events have drawn nearly 9000 visitors to the SRC, diffusing our work well beyond academia.
The CIs advise government, policymakers, including select committees and EU bodies, extensively in this area. We are confident that the future regulatory agenda both in the UK and elsewhere will bring with it many opportunities where academic excellence will bring much needed evidence to the policy making process.
The research will benefit the private sector, including pension funds, asset managers, sovereign wealth funds, banks and other financial institutions that take risk for clients or for their own books and need to understand how such risks depend on financial models and on the homogeneity of models and holdings. They will see how models interact in adverse situations and how the connectivity structure can amplify shocks, and may help them in avoiding events like the 2007 quant crisis when quant funds realised that many more were operating under the same models, strategies and funding constraints. Providers of financial information, e.g. IHS Markit, will be able to develop new products providing valuable information and early-warning systems for financial instability to their private users.
The SRC maintains an excellent network of policymakers, incl. BoE (Andy Haldane, chief economist and executive director, Alex Brazier, executive director financial stability), ECB (Vitor Constâncio, Vice-President; Yves Mersch, Member of Executive Board), IMF (Miguel Segoviano, European Department), BIS (Hyun Song Shin, Economic Adviser and Head of Research) and private companies in the financial sector, incl. Aviva (Angela Darlington, Chief Risk Officer), AXA (Christian Thimann, Group Head), Deutsche Bank (Stuart Lewis, Chief Risk Officer), J.P. Morgan (Olivier Vigneron, Chief Risk Officer EMEA and Firmwide Risk Executive for Market Risk), Blackrock, Deutsche Börse (Kengeter, CEO), IHS Markit (Lance Uggla, President) who have an interest in systemic risk, expressed in their interactions with us.
Apart from these lead users, we also like to appeal to the end-users. In a time of uncertainty and regulatory changes, with more similarity in regulation for banks, insurers, asset managers, increased marking-to-market and margining and ringfencing of retail banking arms, the right diversity of models and connections in finance will be essential to the well functioning of financial flows to their most productive uses. The research into diversity of models will positively affect the prosperity and stability of the City of London and the UK in general by showing the extent to which different financial actors in the UK are needed to contribute to a stable financial eco-system and by providing tools to regulators and actors to monitor this diversity and make it a force for good.
Our research is disseminated in many different ways, leading to valuable feedbacks and on-going relationships. Over the last few years, our events have drawn nearly 9000 visitors to the SRC, diffusing our work well beyond academia.
Publications
Adrian T
(2019)
Risk-taking channel of monetary policy
in Financial Management
Ahir A
(2021)
Rebooting UK Financial Regulation for a Post-Brexit World - A Conference Summary
in SSRN Electronic Journal
Ahnert T
(2018)
Information contagion and systemic risk
in Journal of Financial Stability
Ahnert T
(2020)
Loan Insurance, Market Liquidity, and Lending Standards
Ahnert T
(2018)
Asset Encumbrance, Bank Funding and Fragility
Aksoy CG
(2020)
Vaccine challenges
Aksoy CG
(2022)
Covid-19 and trust among the young
| Description | 1. Model risk and uncertainty in measuring systemic risk. The financial authorities and private sector firms are actively searching for empirical methodologies for measuring systemic risk in order to best regulate the system. Our work shows that most measures currently used are defective, too sensitive to the empirical methods used and reactive rather than predictive, sharpening regulators' concerns about the scope of their current models. SRC established a new subfield of research dealing with frameworks for measuring model risk, the risk of making wrong decisions with models or choosing the wrong model when facing uncertainty. Being aware of the pitfalls of current methodologies and giving decision-makers the ability to assess the reliability of the statistical methodologies they have to choose from, we show how quality of both macroprudential policy and internal management of risk can be significantly improved, including risk to the trading book (incl. derivatives and repos) and the banking book. 2. Drivers of systemic risk. We established an agenda on forward-looking risk measures. It has long been surmised that periods of low perceived risk motivate economic agents to increase their risk-taking activities, in extremis culminating in a financial crisis. This has remained the hypothesis and not verifiable empirically. While most traditional statistical models are not useful in forecasting systemic events because they do not incorporate the underlying economics if the build-up, work at the SRC is the first to empirically demonstrate such a connection. Perceptions of low risk significantly increase the chance of a banking crisis up to 10 years into the future, and has a boom to bust impact on economic growth, investment and capital flows, where global risk appetite dominates local risk appetite. This work formally shows that low volatility can serve as an early warning indicator. Work at the SRC has also exhibited successful methods to improve predictions in the stock markets, in shifts in GDP trend growth, in bank shock transmissions, in carry-trades and in cross-border financing. 3. Underlying this is a long list of SRC papers that have influenced thinking in academia and the real world about the procyclical forces operating when building up actual risk, and how the network structure can create especially vicious and unexpected dynamics. Papers have shaped thinking on the systemic effects of intermediation and custody chains, on bank-shadow bank relations, of domino effects in the Eurozone, of accounting regimes, of carry trades, fire sales, procyclical activist investing etc. 4. SRC has taken a leading role in developing the burgeoning field of macroprudential policy. Through our relationships with policy makers, including collaborative research with them, we have highlighted our many macroprudential themed research papers at the SRC, be they on procyclicalities in macro-pru, the interactions between macroprudential and monetary policy, macro-prudential and leverage cycles or what macro-prudential in computer-based markets. Our research findings on macroprudential stress testing led to a joint SRC-IMF white paper, with the active participation of leading policy authorities, such as the Bank of England, the ECB, reserve Bank of India and the Bank of Japan. 5. The SRC has identified how the financial system has perceived recent crisis interventions, such as those during Covid 19, and how that increased the taking of extreme risk, that is, moral hazard. 6. Through interdisciplinary collaborative research, the SRC has identified hitherto unknown channels of instability arising via the legal and political system. 7. SRC work identifies the finding that the infrastructure providing custody of investments systematically undermines the interests of retail investors, influencing both the Law Commission in their paper 'Intermediated Securities: Who owns your shares' published on 11 November 2020 and by the then Department of Business Innovation & Skills in their Research Paper Number 261 entitled 'Exploring the Intermediated Shareholding Model' in January 2016. |
| Exploitation Route | The findings of the SRC have been taken forward by academia, policymakers and private sector companies. It is at the front year of academic investigations and academic researchers in other institutions have already been using SRC output in their own work to a significant degree. The SRC started with close connections with key policymaking bodies and has continued to develop those relationships, and the work of the SRC, both academic research and policy analysis will have direct impact on the evolution of financial regulations and especially macro prudential policies. SRC researchers have been asked to sit on advisory committees and have frequently discussed the work in government bodies. Private sector institutions concerned with tail risk and systemic risk, and the impact of policy environment on their operations have increasingly been seeking advice from the SRC. This includes both smaller firms in the rapid growth phase and some of the largest financial institutions, up to and including the highest levels of management. Many students at LSE and UCL have benefited from our research and from the access to the data sources the SRC has secured. |
| Sectors | Financial Services, and Management Consultancy,Government, Democracy and Justice |
| Description | The impact of SRC has been, in two policy areas, the fostering of global economic performance as well as the effectiveness of public services and policy, achieved via the following channels. The UK depends on its financial sector for its economic well-being to a higher degree than most large industrialized countries. This makes the UK especially vulnerable to systemic risk. Should the UK significantly reduce the size of the financial system to minimize the danger posed by it or find a way to address the most dangerous aspects in the most cost-effective way. The SRC work has had significant impact on the latter. By better understanding the nature of systemic risk, how it arises and how it can be managed, policies can be effectively targeted to the most relevant aspects and not be wasted elsewhere. In 2014 the SRC joint with Goldman Sachs, organized an event, which included ministerial representation from the UK and Germany. In 2015, the SRC along with the IMF and the ECB, and with participation from the Bank of England, organized an event on stress testing, which further led to a high-level event in IMF headquarters in 2016, culminating in an IMF- SRC white paper on macroprudential stress testing. The SRC hosted a joint conference in 2019 with U.K.'s DSTL, defence science technology laboratory on the role of financial system in a major cyber attack on the UK. One of the two SRC directors has sat on macro prudential advisory boards and a central bank board. SRC staff is frequently asked to develop research on high-level policy discussions, including a Bank of England event on cyber risk, and another on artificial intelligence. As well as a FSB advanced threat event. Covid 19 significantly slowed down direct engagements, but the SRC has this year been called on to participate in high-level official discussions on the regulation of crypto currencies and secondary consequences of monetary policy interventions. A SRC CI Micheler used SRC work as a member of the EU Expert Group on Technical Aspects of Corporate Governance Processes which drafted the 2018 Implementing Regulation for the Shareholder Rights Directive II (Commission Implementing Regulation (EU 2018/1212). She contributed her expertise on securities law and core company law to the discussion of the group. Her work has further been used by the FCA in what is known as Digital Regulatory Reporting. The work on computer trading done at the SRC has led to amendments in the Mifid II directive and regulation with regards to the roles of time and various proposed trading and reporting rules that would have had unintended outcomes. Some of the above themes elaborated in the SRC formed the basis of the successfully retained Impact Case Study by LSE (Danielsson and Zigrand) for the REF. |
| First Year Of Impact | 2014 |
| Sector | Financial Services, and Management Consultancy,Government, Democracy and Justice |
| Impact Types | Economic,Policy & public services |
| Description | Beunza - training of executives at a top-four British bank in the use of ethnographic methods |
| Geographic Reach | National |
| Policy Influence Type | Influenced training of practitioners or researchers |
| Description | Charles Goodhart - House of Commons Treasury Committee, on 'Jobs, growth and Productivity after coronavirus' |
| Geographic Reach | National |
| Policy Influence Type | Contribution to a national consultation/review |
| URL | https://committees.parliament.uk/oralevidence/10211/html/ |
| Description | Daniel Beunza tarted an ethnography training programme for bank executives with the UK Banking Standards Board, aimed at improving gender equality, diversity and inclusion in the City. |
| Geographic Reach | National |
| Policy Influence Type | Influenced training of practitioners or researchers |
| Description | Orkun Saka - EU Commission report on pandemic recovery |
| Geographic Reach | Multiple continents/international |
| Policy Influence Type | Citation in other policy documents |
| URL | https://economy-finance.ec.europa.eu/publications/new-era-europe-how-european-union-can-make-most-it... |
| Description | Paolo Tasca - Permanent Member ISO TC307 and Member DLT/1 Technical Committee, British Standard Institution, London |
| Geographic Reach | National |
| Policy Influence Type | Membership of a guideline committee |
| Description | Rebooting UK Financial Regulation for a Post-Brexit World |
| Geographic Reach | National |
| Policy Influence Type | Contribution to new or Improved professional practice |
| Impact | Our "Rebooting UK Financial Regulation for a Post-Brexit World" (9 Feb 2021) made the case that financial market regulators should focus on how to construct a regulatory regime that promoted economic growth. As a result of our conference presentation, Akshay Kotak (SRC), Dimitri Tsomocos (Said Business School and SRC), and Kevin James met with the Treasury team leading the review of the UK's financial system architecture to elaborate upon our analysis. In part due to this effort, the conference itself, and making the case for our ideas through blogs and seminars, "The government intends to provide for a greater focus on growth and international competitiveness through the introduction of new secondary objectives for the PRA and the FCA" (HMT, Financial Services Future Regulatory Framework Review: Proposals for Reform", Nov 2021). |
| Description | ESRC IAA NPIF industry secondment for Early Career Researchers (ECR) - Alper Odabasioglu |
| Amount | £55,764 (GBP) |
| Organisation | Economic and Social Research Council |
| Sector | Public |
| Country | United Kingdom |
| Start | 07/2018 |
| End | 03/2019 |
| Description | Jointly-funded Post-doctoral LSE-IHS Markit Research Officer position |
| Amount | £65,000 (GBP) |
| Organisation | Markit |
| Sector | Public |
| Country | United Kingdom |
| Start | 09/2021 |
| End | 09/2023 |
| Description | Beunza - collaboration with Grantham Institute |
| Organisation | Grantham Institute: Cimate Change and Environemnt |
| Country | United Kingdom |
| Sector | Public |
| PI Contribution | Daniel Beunza is collaborating with the LSE Grantham Institute in the form of a coauthored project with Matthias Täger, a member of the Institute and PhD candidate in LSE's Department of Geography and Environment. Started in May 2021 and ongoing. |
| Collaborator Contribution | Daniel Beunza is collaborating with the LSE Grantham Institute in the form of a coauthored project with Matthias Täger, a member of the Institute and PhD candidate in LSE's Department of Geography and Environment. Started in May 2021 and ongoing. |
| Impact | No outputs yet. |
| Start Year | 2021 |
| Description | Orkun Saka - collaboration with City Business School |
| Organisation | City, University of London |
| Department | Cass Business School |
| Country | United Kingdom |
| Sector | Academic/University |
| PI Contribution | Orkun Saka brought together the Systemic Risk Centre and the City, University of London to co-organise the 1st London Political Finance (POLFIN) workshop, which has become an annual joint event. |
| Collaborator Contribution | The collaborator contributed to the theme and scientific programme of the workshop and provided logistical support. |
| Impact | The 1st London POLFIN workshop was successfully held in June 2020. |
| Start Year | 2020 |
| Description | 2030 Sustainability Goals: can businesses rise to the challenge? |
| Form Of Engagement Activity | Participation in an activity, workshop or similar |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Public/other audiences |
| Results and Impact | A panel discussion on 25th February 2020. Speakers: Catherine Howarth (CEO, ShareAction), Julie Hudson (Global Head of ESG Research, UBS IB), Peter Lacy (Senior Managing Director, Accenture), Mary Martin (Director of the UN Business and Human Security Initiative, LSE) Chair: Lutfey Siddiqi (Visiting Professor in Practice, LSE IDEAS and Advisory Board member, Systemic Risk Centre, LSE) Almost five years into the fifteen-year trek towards the UN Sustainable Development Goals, the role of business in delivering social and environmental outcomes is squarely in the spotlight. The convening objective of the World Economic Forum this year is to give concrete meaning to "stakeholder capitalism". In August 2019, the Business Roundtable whose members are chief executives of major US companies issued a path-breaking declaration on the purpose of a corporation: to serve all stakeholders, moving away from shareholder primacy. A month later, the UN Global Compact and Accenture Strategy unveiled the world's largest CEO study, across countries and sectors, to assess business execution towards the SDGs. So, what is the state of play? Are businesses on track to deliver on their side of the bargain? What are the best practices? What are the shortcomings and pitfalls to watch out for? What steps are required, by whom and in what sequence, to ramp up private sector contribution to the SDGs? Can businesses really rise to the challenge? The panel discussion sparked interesting discussion and questions. |
| Year(s) Of Engagement Activity | 2020 |
| URL | http://www.systemicrisk.ac.uk/events/2030-sustainability-goals-can-businesses-rise-challenge |
| Description | 2nd LSE Workshop on Political Economy of Turkey |
| Form Of Engagement Activity | Participation in an activity, workshop or similar |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Study participants or study members |
| Results and Impact | The European Institute and the Systemic Risk Centre at the London School of Economics and Political Science jointly organised a workshop on Political Economy of Turkey. The workshop provided a platform for researchers and policymakers to discuss new research and to identify areas where further academic and policy-oriented work is needed. The workshop features a keynote speech by Professor Sule Alan (European University Institute, J-PAL, IPA & Character Lab). |
| Year(s) Of Engagement Activity | 2020 |
| URL | https://www.systemicrisk.ac.uk/events/2nd-lse-workshop-political-economy-turkey |
| Description | 2nd London Political Finance (POLFIN) Workshop |
| Form Of Engagement Activity | Participation in an activity, workshop or similar |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Study participants or study members |
| Results and Impact | The Systemic Risk Centre at the London School of Economics and Political Science (LSE) and the Business School (formerly Cass) at the City, University of London are jointly organising a workshop on the theme of political finance.There was a dedicated discussant for each paper, as well as open floor discussion. The workshop featured a keynote speech by Professor Renée B. Adams (Oxford) on "Gatekeepers: Real and Imagined". The conference sparked questions and discussions among the audience, and interests in the various topics covered. |
| Year(s) Of Engagement Activity | 2021 |
| URL | https://www.systemicrisk.ac.uk/events/2nd-london-political-finance-polfin-workshop |
| Description | 3rd LSE Workshop on Political Economy of Turkey |
| Form Of Engagement Activity | Participation in an activity, workshop or similar |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Study participants or study members |
| Results and Impact | The European Institute and the Systemic Risk Centre at the London School of Economics and Political Science are jointly organising a workshop on Political Economy of Turkey. The workshop provides a platform for researchers and policymakers to discuss new research and to identify areas where further academic and policy-oriented work is needed. There was a dedicated discussant for each paper, as well as open floor discussion. The workshop featured a keynote speech by Professor Daron Acemoglu (MIT). The event sparked questions and discussions among the audience, and generated interests in the topic covered. |
| Year(s) Of Engagement Activity | 2021 |
| URL | https://www.systemicrisk.ac.uk/events/3rd-lse-workshop-political-economy-turkey |
| Description | 50 Years of Altman Z-Score: what have we learned and the applications in financial and managerial markets |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Public/other audiences |
| Results and Impact | A talk by Edward Altman (Professor Emeritus of Finance at New York University, Stern School of Business) on 16th October 2019. Professor Edward Altman from NYU Stern presented a talk on a "50 year retrospective on his famed Z-score model", with applications to financial and managerial markets. Dr Altman will also debunk certain assertions about his models and how they should be applied in today's modern financial markets. Finally, he will discuss briefly his opinions on where we are in the credit cycle today and outlook for credit markets. The talk sparked discussions and questions afterwards. |
| Year(s) Of Engagement Activity | 2019 |
| URL | http://www.systemicrisk.ac.uk/events/50-years-altman-z-score |
| Description | Amlan Roy - FTSE Russell conference interview |
| Form Of Engagement Activity | A press release, press conference or response to a media enquiry/interview |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Professional Practitioners |
| Results and Impact | Amlan Roy was invited to give a video interview at FTSE Russell conference titled "Demographics: Tell the Future". |
| Year(s) Of Engagement Activity | 2022 |
| URL | https://www.youtube.com/watch?v=NS4JX4hSTUg |
| Description | An Institutional Theory of the Firm |
| Form Of Engagement Activity | Participation in an activity, workshop or similar |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Public/other audiences |
| Results and Impact | Date: 16-17th June 2022 Time: 1.5 day event Venue: Conference room, 1.06, Marshall Building, LSE Organisers: Eva Micheler (SRC/LSE), David Gindis (University of Hertfordshire) Speakers: Vicky Barnes (Max Planck), Sandrine Blanc (INSEEC Grande Ecole), Rutger Claassen (Utrecht), Simon Deakin (Cambridge), Isabelle Ferreras (Louvain), Joshua Getzler (Oxford), David Gindis (Hertfordshire), Jonathan Hardman (Edinburgh), Stephan Leixenring (WU Vienna), Samuel Mansell (St Andrews), Ewan McGaughey (KCL), Eva Micheler (SRC/LSE), Christopher Napier (Royal Holloway), Eric Orts (Wharton), Sarah Paterson (LSE), Alexander Pepper (LSE), Alexander Styhre (Gothenburg), Carien van Mourik (OU) For some time the nexus of contract model of the firm and agency theory have operated as the dominant theoretical approach in law, economics and other social sciences. Following the 2008 financial crisis this approach has received substantial and sustained criticism. Despite this critique no alternative positive or normative theory of the firm has yet taken hold. The aim of this conference is to fill this gap and to articulate an institutional theory of the firm. This theory (a) emphasizes the real economic enterprise underlying the legal form supplied by law, (b) highlights that and how the enterprise is constituted by law, (c) examines the relative roles of governance mechanisms, organizational routines, codes of practice, social norms and shared beliefs, in a manner that aims to (d) shine a light on current and future reform proposals. |
| Year(s) Of Engagement Activity | 2022 |
| URL | https://www.systemicrisk.ac.uk/events/institutional-theory-firm |
| Description | Beunza - "Toward a Sociology of Climate Risk" panel |
| Form Of Engagement Activity | Participation in an activity, workshop or similar |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Policymakers/politicians |
| Results and Impact | Daniel Beunza was organiser and moderator of the "Toward a Sociology of Climate Risk" panel event at LSE's Grantham Institute, September 2021. Outline: Climate risk entails all risks for financial assets and the financial system posed by the physical impacts of climate change and the societal reactions to climate change. The understanding of said climate risk within finance has deepened and matured tremendously since the first trailblazing reports on the costs of climate change and the carbon bubble. This enhanced understanding is showing in increasingly sophisticated models and metrics used to assess and measure climate risk by a range of actors from private investors to credit rating agencies and central banks. This quantitative model-based approach to climate risk resembles in many ways established approaches to other financial risks. While the design, diffusion, and use of such more traditional risk assessment models within finance have been subject to sociological investigations producing valuable insights into the shortcomings and unintended consequences of said models, a similar effort regarding climate risk models is still lacking. This panel brings together empirical work on climate risk assessment and first sociological theorisations of climate risk modelling and assessment to make a first step toward a sociology of climate risk. Short presentations of original research will be followed by a panel discussion and an open Q&A session. |
| Year(s) Of Engagement Activity | 2021 |
| URL | https://www.lse.ac.uk/granthaminstitute/events/toward-a-sociology-of-climate-risk/ |
| Description | Bitcoin Decrypted: Cash, Code, Crime & Power |
| Form Of Engagement Activity | A press release, press conference or response to a media enquiry/interview |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Public/other audiences |
| Results and Impact | Jon Danielsson was interviewed by the Naked Scientist and took part in the podcast "Bitcoin Decrypted: Cash, Code, Crime & Power" in April 2021. He spoke on the topic "Are cryptocurrencies really currencies?" It was aired on BBC Radio 5 Live and Radio National in Australia. |
| Year(s) Of Engagement Activity | 2021 |
| URL | https://www.thenakedscientists.com/podcasts/naked-scientists-podcast/bitcoin-decrypted-cash-code-cri... |
| Description | Book launch: The Illusion of Control |
| Form Of Engagement Activity | Participation in an activity, workshop or similar |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Public/other audiences |
| Results and Impact | Date: 15th November 2022 Time: 6:45-8:00pm GMT Venue: MAR.1.08, 1st floor, Marshall Building, LSE (map) Speaker: Jón Daníelsson (SRC/LSE) Chair: Charles Goodhart (FMG/LSE) Jón Daníelsson's new book challenges the conventional wisdom surrounding financial risk, providing insight into why easy solutions to control the financial system are doomed to fail. |
| Year(s) Of Engagement Activity | 2022 |
| URL | https://www.systemicrisk.ac.uk/events/book-launch-illusion-control |
| Description | Central Bank Digital Currencies: Threat or Opportunity? |
| Form Of Engagement Activity | Participation in an activity, workshop or similar |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Public/other audiences |
| Results and Impact | Date: 28th October 2022 Time: 09:00 - 14:30 BST Venue: Conference room, 1.06, Marshall Building, LSE (map) Organisers: Brunello Rosa (Rosa & Roubini Associates, Bocconi University, SRC/LSE), Jean-Pierre Zigrand (SRC/FMG, LSE) Speakers: Piero Cipollone (Banca d'Italia), Tony Craddock (The Payments Association), Kunal Jhanji (Boston Consulting Group), Igor Makarov (LSE Finance), Cyril Monnet (University of Bern/Study Centre Gerzensee), Brunello Rosa (Rosa & Roubini Associates, Bocconi University, SRC/LSE), Hyun Song Shin (Bank for International Settlements), Paul Sisnett (Satellite Moving Devices Group) Central Bank Digital Currencies (CBDCs) have been at the centre of Central Banks' attention since the emergence of a wide array of digital assets, and chiefly crypto-assets and stablecoins. These new digital assets can present features such as "programmability." Central Banks justify the introduction of CBDCs as a mechanism to provide a safe asset in the digital wallets of the wider population when cash will have disappeared. But some fear a severe impact on people's privacy. Other concerns regard the potential impact of the introduction of CBDCs on the implementation of monetary policy and financial stability. Also, financial institutions fear further dis-intermediation of their activities. Underlying this, there are geopolitical motivations that will be explored during the conference. |
| Year(s) Of Engagement Activity | 2022 |
| URL | https://www.systemicrisk.ac.uk/events/central-bank-digital-currencies-threat-or-opportunity |
| Description | Charles Goodhart & Manoj Pradhan: Aging China Will bring the World into Another Globalization |
| Form Of Engagement Activity | A press release, press conference or response to a media enquiry/interview |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Public/other audiences |
| Results and Impact | 'Aging China will bring the World into Another Globalization', PKU Financial Review interview with Charles Goodhart and Manoj Pradhan, 1 March, 2022, following the publication of their book The Great Demographic Reversal. |
| Year(s) Of Engagement Activity | 2022 |
| URL | https://english.phbs.pku.edu.cn/2022/news_0301/3049.html |
| Description | Charles Goodhart 'Is inflation here to stay?', World Finance |
| Form Of Engagement Activity | A press release, press conference or response to a media enquiry/interview |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Industry/Business |
| Results and Impact | 'Is inflation here to stay?', Interview with Charles Goodhart, World Finance, Winter, 2022-23, pp 114-116. |
| Year(s) Of Engagement Activity | 2022 |
| URL | https://www.worldfinance.com/strategy/is-inflation-here-to-stay |
| Description | Charles Goodhart - , 'Here is the professor who believes that we have only seen the beginning of the inflation crisis', Kenneth Praefke, Børsen |
| Form Of Engagement Activity | A press release, press conference or response to a media enquiry/interview |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Public/other audiences |
| Results and Impact | Charles Goodhart was interviewed by Kenneth Praefke, Børsen (Danish financial newspaper). The interview piece appeared as 'Here is the professor who believes that we have only seen the beginning of the inflation crisis' in Børsen (Danish financial newspaper) on 12th October 2022. |
| Year(s) Of Engagement Activity | 2022 |
| Description | Charles Goodhart - Cost of living interview on Sky News |
| Form Of Engagement Activity | A press release, press conference or response to a media enquiry/interview |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Public/other audiences |
| Results and Impact | Charles Goodhart was interviewed on Sky News on 3rd November 2022 on the cost of living crisis. Goodhart criticised the prime minister Rishi Sunak's plan' to give public sector workers a 2% rise in 2023-24. |
| Year(s) Of Engagement Activity | 2022 |
| URL | https://news.sky.com/story/cost-of-living-latest-most-expensive-cheapest-supermarkets-waitrose-morri... |
| Description | Charles Goodhart in "K": Inflation with us until 2050' |
| Form Of Engagement Activity | A press release, press conference or response to a media enquiry/interview |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Public/other audiences |
| Results and Impact | Charles Goodhart was interviewed by press in Greece - 'Charles Goodhart in "K": Inflation with us until 2050', Vassilis Kostoulas, in 'Interview', Kathimerini newspaper, Greece, 29 July 2022. |
| Year(s) Of Engagement Activity | 2022 |
| Description | Charles Goodhart on inflation targets, financial stability and the role of money |
| Form Of Engagement Activity | A press release, press conference or response to a media enquiry/interview |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Policymakers/politicians |
| Results and Impact | Charles Goodhart was interviewed by Christopher Jeffery, Central Banking. June 2021 on inflation targets, financial stability and the role of money. |
| Year(s) Of Engagement Activity | 2021 |
| URL | https://www.centralbanking.com/central-banks/financial-stability/7843681/charles-goodhart-on-inflati... |
| Description | Chwieroth - International Affairs Podcast: Banking crises and politics |
| Form Of Engagement Activity | A broadcast e.g. TV/radio/film/podcast (other than news/press) |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Public/other audiences |
| Results and Impact | Jeff Chwieroth participated in the International Affairs Podcast on Banking Crises and Politics organised by the Chatham House. |
| Year(s) Of Engagement Activity | 2017 |
| URL | https://www.chathamhouse.org/file/international-affairs-podcast-banking-crises-and-politics |
| Description | Conference - 1st London Political Finance (POLFIN) Workshop |
| Form Of Engagement Activity | Participation in an activity, workshop or similar |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Study participants or study members |
| Results and Impact | City Business School and the Systemic Risk Centre at the London School of Economics and Political Science (LSE) jointly organized a workshop on the theme of political finance. The workshop provided a platform for researchers and policymakers to discuss new research and to identify areas where further academic and policy-oriented work is needed. The workshop featured a keynote speech by Professor Sir Timothy Besley (LSE). |
| Year(s) Of Engagement Activity | 2020 |
| URL | https://www.systemicrisk.ac.uk/events/1st-london-political-finance-polfin-workshop |
| Description | Conference - Financial Resilience and Systemic Risk - Conference |
| Form Of Engagement Activity | Participation in an activity, workshop or similar |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Professional Practitioners |
| Results and Impact | A conference on Financial Resilience and Systemic Risk was co-organised by SRC and Institute of Global Affairs in January 2019. Speakers: David Aikman (Bank of England), Franklin Allen (Imperial College), Charlie Bean (LSE), Marek Belka (IGA, LSE), Erik Berglöf (IGA, LSE), Mario Blejer (IRSA, IGA, LSE), Patrick Bolton (Columbia Business School), Ralph de Haas (EBRD), Dimitri Demekas (Bank of England, IGA, LSE), Ben Dyson (Bank of England), Már Guðmundsson (Central Bank of Iceland), Kilian Huber (University of Chicago), Kevin James (FCA, SRC, LSE), Ousmène Mandeng (Accenture, IGA, LSE), Reza Moghadam (Morgan Stanley), Piroska Nagy-Mohácsi (LSE), Ricardo Reis (LSE), Hélène Rey (London Business School), Christina Segal-Knowles (Bank of England, IGA, LSE), Judy Shelton (EBRD), Vania Stavrakeva (London Business School), Elöd Takáts (BIS), Dimitri Vayanos (FMG, LSE), Andres Velasco (LSE), Édouard Vidon (Bank of France), Ernst-Ludwig von Thadden (Mannheim University), Paul Wachtel (NYU Stern Business School). Many interesting papers were presented. The conference sparked discussions and thoughts on relevant topics. |
| Year(s) Of Engagement Activity | 2019 |
| URL | http://www.systemicrisk.ac.uk/events/financial-resilience-and-systemic-risk-conference |
| Description | Conference - Financial crises: predictability, causes and consequences |
| Form Of Engagement Activity | Participation in an activity, workshop or similar |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Professional Practitioners |
| Results and Impact | An all-day conference was organised by SRC on Financial crises: predictability, causes and consequences. Speakers: Matthew Baron (Cornell University), Daisuke Ikeda (Bank of England), Michael Kiley (Federal Reserve Board), Björn Richter (University of Bonn), Miguel Segoviano (International Monetary Fund), Christoph Trebesch (Kiel University) Organisers: Jon Danielsson (SRC, LSE), Marcela Valenzuela (University of Chile), Ilknur Zer (Federal Reserve Board) The conference sparked thoughts and discussions on relevant topics. |
| Year(s) Of Engagement Activity | 2018 |
| URL | http://www.systemicrisk.ac.uk/events/financial-crises-predictability-causes-and-consequences |
| Description | Conference - Sustainability and Systemic Risk |
| Form Of Engagement Activity | Participation in an activity, workshop or similar |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Study participants or study members |
| Results and Impact | The conference explored environmental risk as a source of systemic risk. It brought together speakers from Finance, Law and Regulation. The aim of the conference was to analyse how environmental risk affects systemic risk and to evaluate initiatives that governments have taken to incorporate sustainability goals into the financial system. |
| Year(s) Of Engagement Activity | 2020 |
| URL | https://www.systemicrisk.ac.uk/events/sustainability-and-systemic-risk |
| Description | Conference - The financial markets' response to Covid-19 policy interventions |
| Form Of Engagement Activity | Participation in an activity, workshop or similar |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Study participants or study members |
| Results and Impact | Speakers: Andrew Greenland (Elon University), Daniel Greenwald (MIT), Gordon Liao (FRB), Andreas Uthemann (Bank of Canada & SRC/LSE) Organisers: Mattia Bevilacqua (SRC/LSE), Lukas Brandl-Cheng (SRC/LSE), Lerby Ergun (Bank of Canada & SRC/LSE), Andreas Uthemann (Bank of Canada & SRC/LSE) Covid-19 prompted unprecedented economic and financial market government interventions. Because it was unprecedented, policy initiatives were by and large untested and could not be evaluated in light of previous events. Due to the heterogeneity of the policy responses, with different jurisdictions reacting in very different ways and the impact reaching a significant level, researchers have been able to shed light on how the financial markets, in particular, reacted to the policy initiatives: what worked, what didn't work and what should have been done. |
| Year(s) Of Engagement Activity | 2020 |
| URL | https://www.systemicrisk.ac.uk/events/financial-markets-response-covid-19-government-policy-initiati... |
| Description | Conference - The future of money and the impact of fintech and cryptocurrencies |
| Form Of Engagement Activity | Participation in an activity, workshop or similar |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Professional Practitioners |
| Results and Impact | A conference on The future of money and the impact of fintech and cryptocurrencies was organised by SRC in November 2018. Speakers: Jason Allen (Humboldt University of Berlin Centre for British Studies, University of New South Wales Centre for Law Markets and Regulation), Jon Danielsson (SRC, LSE Finance), Rosa Lastra (Centre for Commercial Law Studies, Queen Mary University of London), Igor Makarov (FMG, LSE Finance), Eva Micheler (SRC, LSE Law), John Moore (The University of Edinburgh, LSE), Co-Pierre Georg (University of Cape Town, Economic Research Southern Africa and Deutsche Bundesbank), Catherine Schenk (University of Oxford, Faculty of History, St Hilda's College), Edmund Schuster (LSE Law) Organisers: Jon Danielsson (SRC, LSE Finance), Eva Micheler (SRC, LSE Law) The conference was well attended and many interesting papers were presented. It sparked discussions and thoughts on relevant topics. |
| Year(s) Of Engagement Activity | 2018 |
| URL | http://www.systemicrisk.ac.uk/events/future-money-and-impact-fintech-and-cryptocurrencies-conference |
| Description | Daniel Beunza - Taking the Floor, featured in "Finance" on BBC Radio 4 program "Thinking Allowed" |
| Form Of Engagement Activity | A press release, press conference or response to a media enquiry/interview |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Public/other audiences |
| Results and Impact | Daniel Beunza's book "Taking the Floor" was featured in "Finance" on BBC Radio 4 program "Thinking Allowed" in July 2020. |
| Year(s) Of Engagement Activity | 2020 |
| URL | https://www.bbc.co.uk/programmes/m000kfr0 |
| Description | Daniel Beunza - The Culture Cast: 'Challenging Normality' |
| Form Of Engagement Activity | A broadcast e.g. TV/radio/film/podcast (other than news/press) |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Public/other audiences |
| Results and Impact | Daneil Beunza was invited to participate in this podcast The Culture Cast: 'Challenging Normality'. The podcast was based on his book "Taking the Floor: Models, Morals, and Management in a Wall Street Trading Room" and the book launch that SRC hosted. |
| Year(s) Of Engagement Activity | 2020 |
| URL | https://www.thisishcd.com/episode/dr-daniel-beunza-challenging-normality |
| Description | Danielsson - Faculti interview - Dealing with systemic risk when we measure it badly |
| Form Of Engagement Activity | A press release, press conference or response to a media enquiry/interview |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Public/other audiences |
| Results and Impact | Jon Danielsson was interviewed on Faculti on Dealing with systemic risk when we measure it badly in February 2019. The video interview sparked discussions and thoughts on relevant topics. |
| Year(s) Of Engagement Activity | 2019 |
| URL | https://faculti.net/dealing-systemic-risk-measure-badly/ |
| Description | Danielsson - interview on macroprudential policies (Iceland) |
| Form Of Engagement Activity | A press release, press conference or response to a media enquiry/interview |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Public/other audiences |
| Results and Impact | Jon Danielsson was interviewed in June 2018 by the Icelandic paper Vidskiptabladid. He opined that macroprudential policies are inherently political and can undermine the central bank's monetary policy. |
| Year(s) Of Engagement Activity | 2018 |
| Description | Danielsson blog - Cryptocurrencies |
| Form Of Engagement Activity | Engagement focused website, blog or social media channel |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Policymakers/politicians |
| Results and Impact | Jon Danielsson blog post Cryptocurrencies on VOXEU |
| Year(s) Of Engagement Activity | 2018 |
| URL | http://www.systemicrisk.ac.uk/publications/opinion-pieces/cryptocurrencies |
| Description | Danielsson blog - Cryptocurrencies are lousy investments |
| Form Of Engagement Activity | Engagement focused website, blog or social media channel |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Policymakers/politicians |
| Results and Impact | Jon Danielsson blog post Cryptocurrencies are lousy investments on VOXEU |
| Year(s) Of Engagement Activity | 2018 |
| URL | http://www.systemicrisk.ac.uk/publications/opinion-pieces/cryptocurrencies-are-lousy-investments |
| Description | Danielsson blog - Cryptocurrencies: Financial stability and fairness |
| Form Of Engagement Activity | Engagement focused website, blog or social media channel |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Policymakers/politicians |
| Results and Impact | Jon Danielsson blog post Cryptocurrencies: Financial stability and fairness on VOXEU |
| Year(s) Of Engagement Activity | 2018 |
| URL | http://www.systemicrisk.ac.uk/publications/opinion-pieces/cryptocurrencies-financial-stability-and-f... |
| Description | Danielsson blog - Low risk as a predictor of financial crises |
| Form Of Engagement Activity | Engagement focused website, blog or social media channel |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Policymakers/politicians |
| Results and Impact | Jon Danielsson blog post Low risk as a predictor of financial crises on VOXEU |
| Year(s) Of Engagement Activity | 2018 |
| URL | http://www.systemicrisk.ac.uk/publications/opinion-pieces/low-risk-predictor-financial-crises |
| Description | Danielsson blog - The hierarchy of financial policies |
| Form Of Engagement Activity | Engagement focused website, blog or social media channel |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Policymakers/politicians |
| Results and Impact | Jon Danielsson blog post The hierarchy of financial policies on VOXEU |
| Year(s) Of Engagement Activity | 2018 |
| URL | http://www.systemicrisk.ac.uk/publications/opinion-pieces/hierarchy-financial-policies |
| Description | Danielsson blog - Which numerical computing language is best: Julia, MATLAB, Python or R? |
| Form Of Engagement Activity | Engagement focused website, blog or social media channel |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Public/other audiences |
| Results and Impact | Jon Danielsson and Jia Rong Fan blog post Which numerical computing language is best: Julia, MATLAB, Python or R? on VOXEU |
| Year(s) Of Engagement Activity | 2018 |
| URL | http://www.systemicrisk.ac.uk/publications/opinion-pieces/which-numerical-computing-language-best-ju... |
| Description | Engineering Financial Instability |
| Form Of Engagement Activity | Participation in an activity, workshop or similar |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Policymakers/politicians |
| Results and Impact | Conference organised with DSTL on 2nd December 2019. Organisers: Mattia Bevilacqua (SRC), Kevin James (SRC, FCA), Alex Stevens (The Defence Science and Technology Laboratory) Speakers: Prof Sir Paul Collier (University of Oxford), Dominic Connor (Independent consultant), Jon Danielsson (Systemic Risk Centre & LSE Finance), Tom Keatinge (Royal United Services Institute), Nic Ryder (University of the West of England, Bristol), Rob Solly (Defence Science and Technology Laboratory), Nikola Tchouparov (Moneyfold Ltd) In a rapidly changing world which is increasingly interdependent and relies on rapidly evolving financial systems to underpin its economy, it is important to understand what threats or opportunities might exist for the UK and her allies across the globe. By considering the changing economic landscape, the UK can look to prepare against 'future shock'; considering what threats it should be aware of, alongside what opportunities could be exploited to improve both the security and stability of the UK and her allies. The conference jointly hosted by Defence Science and Technology Laboratory (Dstl), Financial Conduct Authority (FCA) and Systemic Risk Centre (SRC) sought to understand how modern financial systems could be used: (1) to prevent a country from being able to deliver defence and security for its citizens, either at home or abroad, (2) by other states or non-state actors to create or augment instability around the world or (3) to facilitate the funding of illicit activity. The event was open to people in all stages of their careers and from a wide variety of backgrounds including (but not limited to): politics, economics, history, international relations, defence, finance, philosophy, anthropology, ethics, technology, systems thinking. The conference was split into four interlinking themes: Exploiting Financial Friendship. In this theme we looked at how a state might seek to influence other nations to promote its political ends beyond its own boundaries. This might be achieved through providing finance or aid to that state or its population on favourable terms. This might be a state seeking to influence another state or a state seeking to influence individuals within another target state and could potentially be either direct or more subliminal in nature. Modern Siege. Historically part of warfare has been the ability to deny the enemy access to key supplies, food and water supplies to castles or cities from medieval times through to Leningrad in 1941, and sanctions have and are used as a way of undermining a government's ability to trade and therefore fund its necessary domestic activities. Covert Finance. In this theme we asked how states and non-state actors might finance their activities around the world and/or raise money to pursue their aims whilst hiding their identity and true purpose. Destabilisation of Financial Systems. Whilst major financial hubs might be thought of as immune to deliberate catastrophic destabilisation, could a smaller incident be created to augment a planned, parallel, more traditional attack in order to distract attention or hamper a response? To what extent could individuals or small groups create such a crisis? In smaller countries could such an attack be used to create political unrest which might result in the destabilisation of a government or create the opportunity for an aggressor state to take action? The conference sparked questions and interactions and was unique in linking up the finance and defense disciplines. |
| Year(s) Of Engagement Activity | 2019 |
| URL | http://www.systemicrisk.ac.uk/events/engineering-financial-instability |
| Description | Enrico Perotti (University of Amsterdam) seminar |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | Regional |
| Primary Audience | Study participants or study members |
| Results and Impact | Seminar on 25th November 2019. Seminar Title: Financial Intermediaries and Bankruptcy Law Abstract: We study how the trade-off between liquidity provision and value preservation shapes redemption rules for financial intermediaries. In the literature, a bank prioritizes liquidity provision in a run by selling all assets. In reality, default followed by a mandatory stay on payments is triggered once a bank runs out of liquidity, removing withdrawal queue priority and reducing run incentives. Orderly resolution avoids fire sales, but reduces liquidity provision so strict sequential service dominates when assets are highly liquid (e.g., Treasury MMFs). We show that run frequency under sequential service may be nonmonotonic in asset liquidity. For high enough asset liquidity and sufficiently small liquidity benefits, a payment stay with immediate asset sale and payout is best, rationalizing new rules on gates on Prime MMFs. Our results explain the asset allocation and investor sorting across commercial, narrow, and shadow banks. The seminar sparked questions and discussions. |
| Year(s) Of Engagement Activity | 2019 |
| URL | http://www.systemicrisk.ac.uk/seminars/enrico-perotti-0 |
| Description | Equity Finance: Matching Liability to Power |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Public/other audiences |
| Results and Impact | A talk by Charles Goodhart on 21st May 2019. Charles Goodhart discussed a proposal that he is developing with Rosa Lastra (Queen Mary University School of Law) that aims to fix a fundamental problem with limited liability corporations, viz.: CEOs remunerated in ways that depend upon the level of equity prices (such as bonuses) have an incentive to take excessive risk, and shareholders have little incentive to stop them. Consequently, firms do take excessive risks, and they shift the losses that occur when those risks do not work out onto other stakeholders. Goodhart and Lastra's idea to fix this problem is to create a class of "inside" shareholders who are subject to multiple liability (that is, they are on the hook for a multiple of the initial book value of their shares in the event that the company fails). These inside shareholders will be shareholders capable of monitoring and controlling management, and the multiple liability to which they are subject will give them strong incentives to do so. Drawing upon 18th and 19th century practice and the renewed legal and economic interest in this topic following the Global Financial Crisis of 2008, they discuss how to implement this idea while still preserving the benefits that limited liability creates. The talk sparked questions and interactions among the audience. |
| Year(s) Of Engagement Activity | 2019 |
| URL | http://www.systemicrisk.ac.uk/events/equity-finance-matching-liability-power |
| Description | Exchange rates and monetary policy frameworks in EMEs: Where do we stand? |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Public/other audiences |
| Results and Impact | Talk given by Agustín Carstens (General Manager of the Bank for International Settlements) on 2nd May 2019. A decade after the crisis, central banks are seeking to bring monetary policy back to more normal settings but often lack a compass to navigate the new post-crisis terrain. Emerging market economies (EMEs) face the added challenge of volatile exchange rates and capricious capital flows. The increasing role of financial factors in the transmission of exchange rate fluctuations creates difficult trade-offs for EME central banks. What is the nature of these trade-offs and how should policymakers calibrate and sequence the use of multiple policy instruments? The talk sparked active interactions and questions. |
| Year(s) Of Engagement Activity | 2019 |
| URL | http://www.systemicrisk.ac.uk/events/exchange-rates-and-monetary-policy-frameworks-emes-where-do-we-... |
| Description | Financial cycles, risk, macroeconomic causes and consequences |
| Form Of Engagement Activity | Participation in an activity, workshop or similar |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Public/other audiences |
| Results and Impact | Organisers: Jon Danielsson (SRC/LSE), Marcela Valenzuela (Catholic University of Chile & SRC), Ilknur Zer (Federal Reserve Board & SRC) This is a two-part event which will focus on the effects of financial risk on uncertainty, business cycles, capital flows, and macroeconomy. Part 1 of the conference will provide a forum for discussing innovative research in the area and facilitate the exchange of views among researchers and policymakers. Speakers: Anusha Chari (University of North Carolina at Chapel Hill), Sebnem Kalemli-Özcan (University of Maryland), Carolin Pflueger (University of Chicago), Moritz Schularick (University of Bonn & FRBNY), Ilknur Zer (Federal Reserve Board & SRC). Part 2 of the event concluded the day with a panel "Financial risk, macroeconomy and central bank response to COVID-19", bringing together leading policymakers and economists to discuss policy lessons pertaining to the financial and macroeconomic consequences of COVID-19 and related policy responses. Panellists: Alex Brazier (Bank of England), Jon Danielsson (SRC/LSE), Pat Parkinson (Bank Policy Institute), Isabel Schnabel (ECB & University of Bonn) Chair: Yves Mersch (Former Member of the Executive Board, European Central Bank and Member of the SRC Scientific Advisory Board) |
| Year(s) Of Engagement Activity | 2021 |
| URL | https://www.systemicrisk.ac.uk/events/financial-cycles-risk-macroeconomic-causes-and-consequences |
| Description | Financial regulation when the government goes for growth |
| Form Of Engagement Activity | Participation in an activity, workshop or similar |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Public/other audiences |
| Results and Impact | Date: Thursday 6th October 2022 Time: 18.00-19.30 BST Venue: Conference Room, 1st floor, 1.06, Marshall Building, LSE (map) Confirmed speakers: Charlotte Clark (ABI), Jón Daníelsson (SRC/LSE), Kevin James (SRC/LSE), Eva Micheler (SRC/LSE) Chair: Lutfey Siddiqi (LSE & NUS RMI) In his speech on the 23rd of September, the Chancellor declared: "We need a new approach for a new era, focused on growth". Since financial markets play a crucial role in promoting economic growth and stability, the new government is planning on "an ambitious package of regulatory reforms" to ensure that they do their part. But what exactly should that package of reforms include? And with a government prepared to act as boldly as this one in pursuit of its objectives, no option is off the table. This panel features a range of financial market experts who will explore how the government can reform financial regulation to improve the performance of the UK economy. A write-up is available here https://www.systemicrisk.ac.uk/sites/default/files/2022-10/RegGrowthWriteUp.221025-3.pdf |
| Year(s) Of Engagement Activity | 2022 |
| URL | https://www.systemicrisk.ac.uk/events/financial-regulation-when-government-goes-growth |
| Description | Financializing the non-financial firm |
| Form Of Engagement Activity | Participation in an activity, workshop or similar |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Public/other audiences |
| Results and Impact | Date: 17th June 2022 Time: 18:30-20:00 Venue: Sheikh Zayed Theatre, New Academic Building, LSE (map) Speaker: Katharina Pistor (Columbia University) Chair: Eva Micheler (SRC/LSE) Conventional accounts treat the firm as a site of production and surplus creation. Historically, the corporation was a critical vehicle for capital-intensive production; it shielded investors from liability and committing their capital to the firm for the long term. Over the past half century, the corporate form has been redeployed as a site for financialization, that is, a singular focus on financial returns irrespective of a firm's business purpose. In this lecture, Katharina traces the evolution of the corporation from a vehicle for raising capital into one for creating capital in the hands of shareholders. Four factors have been critical for this outcome: First, changes in rules governing corporate capital including dividend and rules on share-repurchases; second, the rise of institutional investors and their desire for stable cash flows; third, the transposition of structured (debt) finance to the balance sheets of non-financial firms; fourth, the fragmentation of business operation into corporate group structures domestically and transnationally. |
| Year(s) Of Engagement Activity | 2022 |
| URL | https://www.systemicrisk.ac.uk/events/financializing-non-financial-firm |
| Description | Frank Page - 11th Annual UECE - Lisbon Meetings - Game Theory and Applications |
| Form Of Engagement Activity | Participation in an activity, workshop or similar |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Study participants or study members |
| Results and Impact | Frank Page was the organizer of two sessions one Financial Networks and Systemic Risk and one on Stochastic Games at the 11th Annual UECE - Lisbon Meetings - Game Theory and Applications, November, 2019, Lisbon Portugal. The sessions sparked questions and discussions afterwards. |
| Year(s) Of Engagement Activity | 2019 |
| Description | Gerardo Ferrara (Bank of England) seminar |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | Regional |
| Primary Audience | Study participants or study members |
| Results and Impact | Lunchtime seminar on 21st October 2019. Seminar Title: Stimulating liquidity stress in the derivatives market Abstract: We investigate whether margin calls on derivative counterparties could exceed their available liquid assets and, by preventing immediate payment of the calls, spread such liquidity shortfalls through the market. Using trade repository data on derivative portfolios, we simulate variation margin calls in a stress scenario and compare these with the liquid-asset buffers of the institutions facing the calls. Where buffers are insufficient we assume institutions borrow additional liquidity to over the shortfalls, but only at the last moment when payment is due. Such delays can force recipients to borrow more than otherwise, and so liquidity shortfalls can grow in aggregate as they spread through the network. However, we find an aggregate liquidity shortfall equivalent to only a small fraction of average daily cash borrowing in international repo markets. Moreover, we find that only a small part of this aggregate shortfall could be avoided if payments were coordinated centrally. The seminar sparked discussion and questions. |
| Year(s) Of Engagement Activity | 2019 |
| URL | http://www.systemicrisk.ac.uk/seminars/gerardo-ferrara |
| Description | Giovanni Covi (Bank of England) seminar |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | Regional |
| Primary Audience | Study participants or study members |
| Results and Impact | Seminar on 2nd March 2020. Seminar Title: On the Origins of Systemic Risk Abstract: Systemic risk in the banking sector, i.e. the probability to have a large number of banks going into distress simultaneously, is usually associated with long periods of economic downturns and very large social costs. On one hand, shocks coming from common exposures towards the real economy may induce correlation in banks' default probabilities thereby increasing the likelihood for systemic events. On the other hand, financial contagion and market failures may also play an important role in generating large-scale market failures. We propose a microstructural model calibrated on a new granular datasets able to disentangle the different sources of systemic risk and identify its main drivers for the Euro Area banking system. Our results show that common exposures to the real economy represent a source of risk for individual bank distress but less so for systemic events. Systemic events, in turn, are possible due to the interaction between common economic shocks, weakening banks' balance sheets, and financial contagion channels. The results obtained with the simulation engine nicely resemble common market-based systemic risk indicators. The seminar sparked questions and discussions. |
| Year(s) Of Engagement Activity | 2020 |
| URL | http://www.systemicrisk.ac.uk/seminars/giovanni-covi |
| Description | Goodhart - "The central banks have overestimated themselves." Interview |
| Form Of Engagement Activity | A press release, press conference or response to a media enquiry/interview |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Media (as a channel to the public) |
| Results and Impact | Charles Goodhart was interviewed by Dennis Kremer at Frankfurter Allgemeine "Die Notenbanken haben sich überschätzt" (""The central banks have overestimated themselves.") in February 2022. |
| Year(s) Of Engagement Activity | 2022 |
| URL | https://www.faz.net/aktuell/finanzen/oekonom-goodhardt-wie-sich-die-notenbanken-ueberschaetzt-haben-... |
| Description | Goodhart - 'Then the system loses its anchor' by Malte Fischer -- Interview, Redaktion WirtschaftsWoche, |
| Form Of Engagement Activity | A press release, press conference or response to a media enquiry/interview |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Public/other audiences |
| Results and Impact | Charles Goodhart was interviewed by Malte Fischer in 'Then the system loses its anchor' , Redaktion WirtschaftsWoche, March 2021 |
| Year(s) Of Engagement Activity | 2021 |
| Description | Goodhart - Beleggen', Interview with Charles Goodhart by Kris Van Hamme, De Tijd, |
| Form Of Engagement Activity | A press release, press conference or response to a media enquiry/interview |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Public/other audiences |
| Results and Impact | Charles Goodhart was interviewed by Kris Van Hamme, De Tijd, March 2021 pp 39/40. |
| Year(s) Of Engagement Activity | 2021 |
| URL | https://www.tijd.be/markten-live/nieuws/algemeen/de-wereld-is-niet-klaar-voor-een-inflatiestijging/1... |
| Description | Goodhart - Dyre Laerepenge, Interview with Charles Goodhart by Kare Holm Thomsen, Weekendavisen |
| Form Of Engagement Activity | A press release, press conference or response to a media enquiry/interview |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Public/other audiences |
| Results and Impact | Charles Goodhart was interviewed by Kare Holm Thomsen, Weekendavisen 'Dyre Laerepenge,' March 2021. |
| Year(s) Of Engagement Activity | 2021 |
| URL | https://www.weekendavisen.dk/2021-9/ideer/dyre-laerepenge |
| Description | Goodhart - Interview at Expresso (Portuguese magazine) |
| Form Of Engagement Activity | A press release, press conference or response to a media enquiry/interview |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Public/other audiences |
| Results and Impact | Charles Goodhart was interviewed at Expresso (Portuguese magazine), 'There is an explosive combination on the horizon, of stagnation with high inflation warns Charles Goodhart, the dean of British economists', by Jorge Nascimento Rodrigues, Expresso, 18 November 2021, |
| Year(s) Of Engagement Activity | 2021 |
| Description | Goodhart - Profile in WSJ 2022 |
| Form Of Engagement Activity | A press release, press conference or response to a media enquiry/interview |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Media (as a channel to the public) |
| Results and Impact | Charles Goodhart was interviewed by Tom Fairless at Wall Street Journal who wrote up a profile of his titled 'Will Inflation Stay High for Decades? One Influential Economist Says Yes' in March 2022. |
| Year(s) Of Engagement Activity | 2022 |
| URL | https://www.wsj.com/articles/inflation-high-forecast-economist-goodhart-cpi-11646837755 |
| Description | Goodhart - Young people will have to pay more taxes to support the elderly, and they won't like it" |
| Form Of Engagement Activity | A press release, press conference or response to a media enquiry/interview |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Public/other audiences |
| Results and Impact | Charles Goodhart was interviewed by Alvaro Sanchez in 'Young people will have to pay more taxes to support the elderly, and they won't like it', El Pais, 26 June 2021. |
| Year(s) Of Engagement Activity | 2021 |
| Description | Goodhart: Canadian legalization of cannabis reduces both cash usage and the 'black' economy |
| Form Of Engagement Activity | Engagement focused website, blog or social media channel |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Policymakers/politicians |
| Results and Impact | Blog post 'Canadian legalization of cannabis reduces both cash usage and the 'black' economy', Charles Goodhart and Jonathan Ashworth, Vox EU, http://voxeu.org, 22 January 2019. |
| Year(s) Of Engagement Activity | 2019 |
| URL | https://voxeu.org/article/canadian-legalisation-cannabis-reduces-both-cash-usage-and-black-economy |
| Description | Goodhart: Credit mechanics: A precursor to the current money supply debate |
| Form Of Engagement Activity | Engagement focused website, blog or social media channel |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Policymakers/politicians |
| Results and Impact | Blog post: Credit mechanics: A precursor to the current money supply debate', (with Frank Decker), Vox EU, 14 December, 2018, www.voxeu.org. |
| Year(s) Of Engagement Activity | 2018 |
| URL | https://voxeu.org/article/credit-mechanics-precursor-current-money-supply-debate |
| Description | Has cryptocurrencies' charm changed our perspective on money? |
| Form Of Engagement Activity | A press release, press conference or response to a media enquiry/interview |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Public/other audiences |
| Results and Impact | Jon Danielsson was interviewed by Anadolu Agency on his views on cryptocurrencies. The piece sparked discussion afterwards. |
| Year(s) Of Engagement Activity | 2021 |
| URL | https://www.aa.com.tr/en/economy/has-cryptocurrencies-charm-changed-our-perspective-on-money/2226587 |
| Description | Ilaria Piatti (Saïd Business School, University of Oxford) seminar |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | Regional |
| Primary Audience | Study participants or study members |
| Results and Impact | Seminar on 17th February 2020. Seminar Title: Subjective Bond Risk Premia and Belief Aggregation Abstract: The central ingredient of empirical asset pricing tests is the (expected) risk premium. However, heterogeneity in expectations makes aggregation of beliefs to the marginal agent a non-trivial task. This paper proposes a novel aggregation approach inspired by Friedman's "selection in competitive markets" hypothesis. Our measure is available for the cross-section of U.S long term bond maturities and is available in real-time for an extended sample period. We use this measure to revisit conclusions of structural models and find support for rational determinants of risk premia and, in particular, a stronger role for the quantity of risk channel than what has been previously documented. The seminar sparked questions and discussions. |
| Year(s) Of Engagement Activity | 2020 |
| URL | http://www.systemicrisk.ac.uk/seminars/ilaria-piatti |
| Description | Jeff Chwieroth - Bank of England presentation |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Policymakers/politicians |
| Results and Impact | Jeff Chwieroth gave a presentation on Pandemic Preferences: Voter Attitudes towards COVID-19 Economic Policy Interventions, at Bank of England, London, UK, 21 September 2021. The presentation was given in the Bank's "New Methods" seminar. It was attended by approximately 50 members of the Bank staff, including the chief economist (Huw Pill). |
| Year(s) Of Engagement Activity | 2021 |
| Description | Jon Danielsson - Has cryptocurrencies' charm changed our perspective on money? |
| Form Of Engagement Activity | A press release, press conference or response to a media enquiry/interview |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Media (as a channel to the public) |
| Results and Impact | Jon Danielsson was interviewed on cryptocurrencies in "Has cryptocurrencies' charm changed our perspective on money?" published by Anadolu Agency in May 2021. |
| Year(s) Of Engagement Activity | 2021 |
| URL | https://www.aa.com.tr/en/economy/has-cryptocurrencies-charm-changed-our-perspective-on-money/2226587 |
| Description | Jon Danielsson - New Statesman - Spotlight - Interview |
| Form Of Engagement Activity | A press release, press conference or response to a media enquiry/interview |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Public/other audiences |
| Results and Impact | Jon Danielsson was interviewed by the New Statesman Spotlight. The title of interview is The Policy Ask with Jon Danielsson: "The government should ditch financial regulation that protects big incumbents" |
| Year(s) Of Engagement Activity | 2022 |
| URL | https://www.newstatesman.com/spotlight/investment/2022/11/the-policy-ask-with-jon-danielsson-the-gov... |
| Description | Jon Danielsson - RUV interview on the economic impact of the coronavirus pandemic |
| Form Of Engagement Activity | A press release, press conference or response to a media enquiry/interview |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Public/other audiences |
| Results and Impact | Jon Danielsson was interviewed by Iceland media RUV on the economic impact of the coronavirus pandemic. Writeup: https://www.ruv.is/kveikur/atvinnuvegurinn-sem-hvarf/ Video: https://www.ruv.is/sjonvarp/spila/kveikur/29047/8l0e3p |
| Year(s) Of Engagement Activity | 2020 |
| URL | https://www.ruv.is/kveikur/atvinnuvegurinn-sem-hvarf/ |
| Description | Jon Danielsson - Systemic risk and digital assets (Coingeek) |
| Form Of Engagement Activity | A press release, press conference or response to a media enquiry/interview |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Media (as a channel to the public) |
| Results and Impact | Jon Danielsson was interviewed and gave comments on the piece "Systemic risk and digital assets" published in Coingeek on 16th Jan 2023 following the FTX's collapse. |
| Year(s) Of Engagement Activity | 2023 |
| URL | https://coingeek.com/systemic-risk-and-digital-assets/ |
| Description | Jon Danielsson - The Illusion of Control - VoxTalk Economics S5 Ep43 |
| Form Of Engagement Activity | A press release, press conference or response to a media enquiry/interview |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Professional Practitioners |
| Results and Impact | Jon Danielsson was interviewed by Tim Phillips on VoxTalk Economics on his book The illusion of control. The podcast was published on 23rd Sept 2022. |
| Year(s) Of Engagement Activity | 2022 |
| URL | https://cepr.org/multimedia/illusion-control |
| Description | Jon Danielsson - The Illusion of Control: Why Financial Crises Happen, and What We Can (and Can't) Do About It Podcast |
| Form Of Engagement Activity | A broadcast e.g. TV/radio/film/podcast (other than news/press) |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Public/other audiences |
| Results and Impact | Jon Danielsson was interviewed in a podcast published on 22 Sept 2022 from "Sounds About Right: Audiobooks to Help Us Understand the World" on his book The Illusion of Control: Why Financial Crises Happen, and What We Can (and Can't) Do About It. Some of topics in the episode discussed includes: How we have the best intentions with short term ideas in regulating financial systems however the desired outcome isn't always the case. How the banks have abused their power because of the publics lack of understanding of how finance works and how this has been at the root of many financial scandals Why it's important for us to have political leaders at moment of financial crises and systemic risks The cost of living crisis What lessons from the past could we learn from to ensure the same mistakes aren't made again?...and what can we do? |
| Year(s) Of Engagement Activity | 2022 |
| URL | https://soundsaboutpod.buzzsprout.com/1908151/11259299 |
| Description | Jon Danielsson - Ukraine sanctions on the main newsmagazine on Iceland RUV TV station |
| Form Of Engagement Activity | A press release, press conference or response to a media enquiry/interview |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Public/other audiences |
| Results and Impact | Jon Danielsson was interviewed and discussed Ukraine sanctions on the main newsmagazine on Iceland RUV TV station in March 2022. |
| Year(s) Of Engagement Activity | 2022 |
| URL | https://www.ruv.is/frett/2022/03/06/horfum-fram-a-langt-strid-i-ukrainu |
| Description | Jon Danielsson - executive seminar in Florence |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | Regional |
| Primary Audience | Professional Practitioners |
| Results and Impact | Jon Danielsson gave an executive seminar on The New World of Financial Stability on 28/06/19 in Florence. The talk sparked questions and discussions. |
| Year(s) Of Engagement Activity | 2019 |
| Description | Jon Danielsson - interview by Iceland paper Viðskiptablaðið on financial crisis and the coronavirus pandemic |
| Form Of Engagement Activity | A press release, press conference or response to a media enquiry/interview |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Public/other audiences |
| Results and Impact | Jon Danielsson was interviewed by the Iceland paper Viðskiptablaðið on his views on the possibility of a financial crisis and the coronavirus pandemic. The interview was published on 26th March 2020. |
| Year(s) Of Engagement Activity | 2020 |
| Description | Jon Danielsson - media interview on the impact of the coronavirus pandemic |
| Form Of Engagement Activity | A press release, press conference or response to a media enquiry/interview |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Public/other audiences |
| Results and Impact | Jon Danielsson was interviewed by the Icelandic media Frettabladid on the economic impact of the coronavirus pandemic and recovery. The interview was published on 25th March 2020. |
| Year(s) Of Engagement Activity | 2020 |
| URL | https://frettabladid.overcastcdn.com/documents/200325.pdf |
| Description | Jon Danielsson - media responses to blog post "What happens if bitcoin succeeds?" |
| Form Of Engagement Activity | Engagement focused website, blog or social media channel |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Public/other audiences |
| Results and Impact | Various media outlets responded to Jon Danielsson's blog post on VOXEU "What happens if bitcoin succeeds?" published on 26th February 2021. They included Decrypt, BeInCrypto, Crypto Briefing, Cointelegraph, Finance Magnates, Bitcoin.com, Coin Journal, Inside Bitcoins, and Bollyinside. The blog post generated a lot of discussion on social media. |
| Year(s) Of Engagement Activity | 2021 |
| Description | Jon Danielsson - mistakes made by central banks in Covid response |
| Form Of Engagement Activity | A press release, press conference or response to a media enquiry/interview |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Media (as a channel to the public) |
| Results and Impact | Jon Danielsson was interviewed by the business newspaper, Vidskiptabladid, and discussed mistakes made by central banks in Covid response and why that causes difficulties in responding to Ukraine invasion. (Feb 2022) |
| Year(s) Of Engagement Activity | 2022 |
| URL | https://www.vb.is/frettir/sedlabankar-gert-reginmistok/173130/ |
| Description | Jon Danielsson - on cryptocurrencies on Icelandic 'Business Magazine' |
| Form Of Engagement Activity | A press release, press conference or response to a media enquiry/interview |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Public/other audiences |
| Results and Impact | Jon Danielsson was interviewed for the Icelandic Business Magazine on cryptocurrencies. The piece was published on 2nd March 2023. |
| Year(s) Of Engagement Activity | 2023 |
| URL | https://www.vb.is/frettir/upphafid-ad-endalokunum/ |
| Description | Jon Danielsson - on economic consequences of Russia's invasion |
| Form Of Engagement Activity | A press release, press conference or response to a media enquiry/interview |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Media (as a channel to the public) |
| Results and Impact | Jon Danielsson was interviewed by business newspaper, Vidskiptabladid, and discussed economic consequences of Russia's invasion. (March 2022) |
| Year(s) Of Engagement Activity | 2022 |
| URL | https://www.vb.is/frettir/sedlabankar-i-sogulega-erfidri-stodu/173372/ |
| Description | Jon Danielsson - on economic consequences of Russia's invasion |
| Form Of Engagement Activity | A press release, press conference or response to a media enquiry/interview |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Media (as a channel to the public) |
| Results and Impact | Jon Danielsson was interviewed by newspaper, Frettabladid, and discussed economic consequences of Russia's invasion. (Feb 2022) |
| Year(s) Of Engagement Activity | 2022 |
| URL | https://www.frettabladid.is/markadurinn/innrasin-skekur-hagkerfi-heimsins/ |
| Description | Jon Danielsson - on economic consequences of Russia's invasion (RAI TV) |
| Form Of Engagement Activity | A press release, press conference or response to a media enquiry/interview |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Media (as a channel to the public) |
| Results and Impact | Jon Danielsson was interviewed by RAI TV and appeared on programme TG1. He discussed economic consequences of Ukraine invasion. (16th March 2022) |
| Year(s) Of Engagement Activity | 2022 |
| URL | https://www.raiplay.it/video/2022/03/TG1-Economia-del-16032022-3c349c6b-c5ac-453e-991b-c8b49dfb5683.... |
| Description | Jon Danielsson - online seminar Artificial Intelligence and Systemic Risk |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Study participants or study members |
| Results and Impact | Jon Danielsson, Director of SRC, gives an online seminar on Artificial Intelligence and Systemic Risk on 24th October 2019, organised by the Florence School of Banking & Finance. Artificial intelligence (AI) is rapidly changing how the financial system is operated, taking over core functions because of cost savings and operational efficiencies. AI will assist both risk managers and microprudential authorities. By the same token AI has also the potential to destabilise the financial system, creating new tail risks and amplifying existing ones due to procyclicality, endogenous complexity, optimisation against the system and the need to trust the AI engine. Jon Danielsson discusses this topic on the basis of the most recent results of his research, published in a paper in June 2019. The presentation is followed by the intervention of a discussant and a Q&A session with the public. The video recording is available here. |
| Year(s) Of Engagement Activity | 2019 |
| URL | https://eur03.safelinks.protection.outlook.com/?url=https%3A%2F%2Ffbf.adobeconnect.com%2Ffbf_webinar... |
| Description | Jon Danielsson -talk in Crypto Valley Blockchain 2019 |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Public/other audiences |
| Results and Impact | Jon Danielsson gave a talk in Crypto Valley Blockchain 2019 on 24-26/06/19 in Switzerland. The talk sparked questions and discussion. |
| Year(s) Of Engagement Activity | 2019 |
| URL | https://app.qwoted.com/opportunities/event-2019-crypto-challenge-forum-2019 |
| Description | Jon Danielsson Directorate General of Macroprudential Policy and Financial Stability (DGMF) seminar series (ECB) |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | Regional |
| Primary Audience | Policymakers/politicians |
| Results and Impact | Jon Danielsson gave a seminar at the Directorate General of Macroprudential Policy and Financial Stability (DGMF) seminar series - "Artificial intelligence and systemic risk"on 04/02/19 in Frankfurt ECB. The talk sparked discussions and questions. |
| Year(s) Of Engagement Activity | 2019 |
| Description | Jon Danielsson interviewed Finanz und Wirtschaft (Swiss financial newspaper) |
| Form Of Engagement Activity | A press release, press conference or response to a media enquiry/interview |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Public/other audiences |
| Results and Impact | Jon Danielsson was interviewed by Pascal Meisser at Finanz und Wirtschaft (Swiss financial newspaper) in July 2019 on how to measure risk. |
| Year(s) Of Engagement Activity | 2019 |
| URL | https://www.fuw.ch/article/wir-messen-die-risikofaktoren-falsch/ |
| Description | Jon Danielsson invited talk in WEHIA summer school |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Postgraduate students |
| Results and Impact | Jon Danielsson gave a talk on "Endogenous systemic risk" in WEHIA PhD School in UCL on 21 June 2019. The talk sparked questions and discussions. |
| Year(s) Of Engagement Activity | 2019 |
| URL | https://sites.google.com/view/2019wehiaschool/ |
| Description | Jon Danielsson seminar in Cyprus |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | Regional |
| Primary Audience | Postgraduate students |
| Results and Impact | Jon Danielsson gave a seminar in Department of Accounting and Finance in University of Cyprus on 17 April 2019. The talk sparked discussions and questions. |
| Year(s) Of Engagement Activity | 2019 |
| URL | https://www.ucy.ac.cy/afn/en/20-en-articles/en-topm/115-seminars-2019 |
| Description | Jon Danielsson seminar in Lancaster University |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | Regional |
| Primary Audience | Postgraduate students |
| Results and Impact | Jon Danielsson gave a seminar on Risk appetite and economic growth in Lancaster University on 8 May 2019. The talk sparked questions and discussions. |
| Year(s) Of Engagement Activity | 2019 |
| URL | https://www.lancaster.ac.uk/lums/research/events/economics-seminar-jon-danielsson-lse |
| Description | Karin Joeveer - Radio discussion on the high profits of the commercial banks in the environment of increasing regulatory interest rates. |
| Form Of Engagement Activity | A press release, press conference or response to a media enquiry/interview |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Public/other audiences |
| Results and Impact | On 13.02.2023 Karin Joeveer gave an interview to radio discussion in Estonia on the high profits of the commercial banks in the environment of increasing regulatory interest rates. |
| Year(s) Of Engagement Activity | 2023 |
| Description | Karin Joeveer - TV interview on high inflation and further increasing regulatory interest rates |
| Form Of Engagement Activity | A press release, press conference or response to a media enquiry/interview |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Public/other audiences |
| Results and Impact | On 28.02.2023 Karin Joeveer was in the most watched evening TV news in Estonia commenting on the high inflation and further increasing regulatory interest rates. Other interviewees included the president of the national central bank of Estonia and a chief economist of the biggest commercial bank. |
| Year(s) Of Engagement Activity | 2023 |
| URL | https://www.err.ee/1608900107/inflatsiooni-ohjeldamiseks-jatkuvad-intressitousud-ka-jargmisel-aastal |
| Description | Karin Joeveer - TV interview on regulation of saving and loan associations |
| Form Of Engagement Activity | A press release, press conference or response to a media enquiry/interview |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Public/other audiences |
| Results and Impact | Karin Joeveer was in Morning TV on 27.10.2022 for an interview in regarding regulation of saving and loan associations. During 2022 several big saving and loan associations failed in Estonia and the discussion of establishing regulation on them emerged. |
| Year(s) Of Engagement Activity | 2022 |
| Description | Kevin James - "City or Industry? Take 2" LFR seminar |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | Regional |
| Primary Audience | Study participants or study members |
| Results and Impact | Kevin James gave a seminar: "City or Industry? Take 2", London Financial Regulation Seminar at Queen Mary Advanced Commercial Law Centre, 9 Nov 2021 |
| Year(s) Of Engagement Activity | 2021 |
| Description | Kevin James - CSFI Roundtable "Rebooting UK Financial Regulation for a Post-Brexit World" |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Professional Practitioners |
| Results and Impact | Kevin James presented ideas on how to reform UK financial regulation at the CSFI Roundtable "Rebooting UK Financial Regulation for a Post-Brexit World" (7 Oct 2021). Impact: inspired debate on adding a growth objective to the FCA's objectives; |
| Year(s) Of Engagement Activity | 2021 |
| URL | https://www.csfi.org/2021-10-07-rebooting-uk-financial-regulation |
| Description | Marcela Valenzuela - organiser of Santiago Finance Workshop 2019 |
| Form Of Engagement Activity | Participation in an activity, workshop or similar |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Study participants or study members |
| Results and Impact | The Santiago Finance Workshop brought together academics, regulators and practitioners from all over the world in order to discuss new empirical and theoretical research that deals with finance, to highlight some of the associated challenges for regulators, but also to assess how regulatory changes may induce in turn some financial innovations in the market. The keynote speaker was Prof. Itay Goldstein (University of Pennsylvania - Wharton School), executive editor of The Review of Financial Studies. The meeting was organized by the Millennium Institute for Research in Market Imperfections and Public Policy, the Center of Applied Economics, the Center of Finance and the Business School at University of Chile. |
| Year(s) Of Engagement Activity | 2019 |
| Description | Market stability, social distancing and the future of trading floors after COVID-19 |
| Form Of Engagement Activity | Participation in an activity, workshop or similar |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Public/other audiences |
| Results and Impact | The return to the office has presented banks with the challenge of rethinking the traditional configuration of their trading floors to reconcile social distancing with physical proximity. Unlike other industries, where work from home proved surprisingly effective, the experience with Covid suggests that proximity is particularly important in trading, not simply in terms of financial returns but also of market stability. For instance, a recent report from the Bank for International Settlements notes that the move to work from home added to market volatility in March 2020. In light of that concern, how should the "new normal" trading floor look like? This panel event informs the existing debate over trading floor design by considering the recent experience from the Covid lockdown, as well as the lessons from existing academic studies of trading floors and market stability. It asks: what organisational policies have helped banks preserve continuity in their trading during the shift to work from home? What is the role of technology in supplementing physical proximity? What other difficulties has working from home posed for trading compliance, security, the wellbeing of traders, etc.? What long-term challenges lie ahead in areas such as financial innovation or career progression? This event promotes discussion on these topics by bringing together an online panel of academics from economics, finance, management and architecture, along with bank executives and journalists. |
| Year(s) Of Engagement Activity | 2020 |
| URL | https://www.systemicrisk.ac.uk/events/market-stability-social-distancing-and-future-trading-floors-a... |
| Description | Matthew Baron (Cornell University) |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | Regional |
| Primary Audience | Study participants or study members |
| Results and Impact | Seminar on 9th December 2019. Seminar Title: Intermediaries and Asset Prices: Evidence from the U.S., U.K., and Japan, 1870-2016 Abstract: We study new international data on commercial banks and securities dealers from 1870-2016. Balance sheet expansion of intermediaries negatively predicts asset returns (stocks, bonds, currencies, housing) with high R2. This holds when controlling for macroeconomic predictors, is more concentrated at shorter horizons, and is stronger for intermediaries who participate more in a given security. We find robust predictability outside distress periods, in contrast to models featuring non-linearities during distress. Intermediaries in global financial centers predict asset returns internationally. Our results suggest a strong universal link between intermediaries and asset returns distinct from other macroeconomic channels. We highlight implications for theory. The seminar sparked questions and discussions. |
| Year(s) Of Engagement Activity | 2019 |
| URL | http://www.systemicrisk.ac.uk/seminars/matthew-baron |
| Description | Orkun Saka - Cultural stereotypes of multinational banks |
| Form Of Engagement Activity | A press release, press conference or response to a media enquiry/interview |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Public/other audiences |
| Results and Impact | Orkun Saka was interviewed for a podcast episode by VoxTalks Economics on his latest paper, "Cultural stereotypes of multinational banks". It is publicly available on any podcast-related resource including Spotify. |
| Year(s) Of Engagement Activity | 2023 |
| URL | https://open.spotify.com/episode/5zAK8AWTIcrz5rX9aBfaOJ?si=a42b95fd1d664ba9 |
| Description | Orkun Saka - Organisation of a session on Social Capital and Banking Crises during the Allied Social Science Meetings in San Diego, USA (3-5 January, 2020 |
| Form Of Engagement Activity | Participation in an activity, workshop or similar |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Study participants or study members |
| Results and Impact | Orkun Saka organised a session on Social Capital and Banking Crises during the Allied Social Science Meetings in San Diego, USA (3-5 January, 2020). The workshop sparked questions and discussions on this topic. |
| Year(s) Of Engagement Activity | 2020 |
| Description | Orkun Saka - There is a 'good' reason for EU banks to hold their own country's sovereign debt. |
| Form Of Engagement Activity | Engagement focused website, blog or social media channel |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Public/other audiences |
| Results and Impact | Orkun Saka wrote a blog piece in LSE Business Review: There is a 'good' reason for EU banks to hold their own country's sovereign debt. |
| Year(s) Of Engagement Activity | 2020 |
| URL | https://blogs.lse.ac.uk/businessreview/2020/01/10/there-is-a-good-reason-for-eu-banks-to-hold-their-... |
| Description | Paying for Efficient and Effective Markets |
| Form Of Engagement Activity | Participation in an activity, workshop or similar |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Professional Practitioners |
| Results and Impact | Conference organised with Financial Conduct Authority on 22-23 March 2019. Organisers: Jon Danielsson (SRC, LSE), Kevin James (FCA, SRC), Dimitri Vayanos (FMG, PWC, LSE) Speakers: Matteo Aquilina (FCA), Rudi Fahlenbrach (Swiss Institute of Finance), Jill Fisch (U Penn), Mireia Giné (IESE), Kevin James (FCA, SRC), Robert MacKay (Warwick), Daniel Mittendorf (FCA), John Morley (Yale), Emilio Osambela (FRB), Lasse Pedersen (Copenhagen), Edwin Schooling Latter (FCA), Amarjeet Singh (SEBI), Robert Stambaugh (Wharton), Grant Turner (BIS), Dimitri Vayanos (FMG, PWC, LSE) To perform at full potential, the economy requires efficient and effective financial markets that operate at minimum feasible social cost. Actively managed funds play a crucial role in bringing about market efficiency and effectiveness, but only as a by-product of their costly efforts to out-perform the market. Passive investment funds compete for investors by offering low-cost investment options, but they do so in part by taking market efficiency and effectiveness as given. Consequently, it is unclear if market forces alone will lead to the optimal balance of efficiency, effectiveness, and cost. In this two-day conference we will explore these issues, focusing upon: The rise of passive investing How market efficiency arises: The role of active funds, passive funds and benchmarking Do large investment funds affect competition between the firms in which they invest? Manager skill and fund fees in equilibrium The impact of passive funds on corporate governance The implications of passive funds for financial stability The conference sparked interactions and questions and follow-up events. |
| Year(s) Of Engagement Activity | 2019 |
| URL | http://www.systemicrisk.ac.uk/events/paying-efficient-and-effective-markets |
| Description | Pedro Duarte Neves - Euro area financial stability in the Covid-10 recovery |
| Form Of Engagement Activity | A broadcast e.g. TV/radio/film/podcast (other than news/press) |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Public/other audiences |
| Results and Impact | Pedro Duarte Neves gave a podcast on "Euro area financial stability in the Covid-10 recovery", at OMFIF Podcast, 22 June 2021 |
| Year(s) Of Engagement Activity | 2021 |
| URL | https://www.omfif.org/podcast/euro-area-financial-stability-in-the-covid-19-recovery/ |
| Description | Pedro Duarte Neves - Financial stability outlook: global and European perspectives |
| Form Of Engagement Activity | A broadcast e.g. TV/radio/film/podcast (other than news/press) |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Policymakers/politicians |
| Results and Impact | Just as economies and financial markets around the world were beginning to recover from the unprecedented Covid-19 shocks, fallout from the war in Ukraine has heightened global financial risk once again. How have the post-2008 financial crisis stability frameworks fared in response to these crises? Pedro Duarte Neves, adviser for the board of directors, Banco de Portugal, and Bill Papadakis, investment strategist for Lombard Odier's macro team, speak to Taylor Pearce, OMFIF economist, about the various facets of financial stability for the euro area and globally, including the risks associated with corporate debt levels, sustainability imperatives and non-bank financial institutions. |
| Year(s) Of Engagement Activity | 2022 |
| URL | https://www.omfif.org/podcast/financial-stability-outlook-global-and-european-perspectives/ |
| Description | Public lecture: Recent Developments in Turkey's Economy |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Public/other audiences |
| Results and Impact | A public lecture on Recent Developments in Turkey's Economy was organised by SRC on 12th March 2019. Speaker: Selin Sayek Böke (Member of Turkish Parliament) Chair: Sergei Guriev (Chief Economist of the European Bank for Reconstruction and Development & Professor of Economics at Sciences Po) Organisers: Cevat Giray Aksoy (EBRD, LSE & IZA), Davide Luca (University of Cambridge, LSE & GSSI) and Orkun Saka (LSE & SRC) The lecture sparked interesting debates and discussions. |
| Year(s) Of Engagement Activity | 2019 |
| URL | http://www.systemicrisk.ac.uk/events/recent-developments-turkey%E2%80%99s-economy |
| Description | Public lecture: The Future of Money |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Public/other audiences |
| Results and Impact | A public panel on The Future of Money was organised by SRC in November 2018. Chair: Sir Ross Cranston (Professor of Law, Department of Law, LSE) Panellists: Jon Danielsson (SRC, LSE Finance), Eva Micheler (SRC, LSE Law) and Nikola Tchouparov (Moneyfold Ltd) The panel sparked animated discussions and debate on relevant topics. |
| Year(s) Of Engagement Activity | 2018 |
| URL | http://www.systemicrisk.ac.uk/events/future-money-public-lecture |
| Description | Public lecture: Unelected Power: The Quest for Legitimacy in Central Banking and the Regulatory State |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Public/other audiences |
| Results and Impact | A public lecture on Unelected Power: The Quest for Legitimacy in Central Banking and the Regulatory State was organised by SRC. Speaker: Paul Tucker (Harvard Kennedy School Fellow, Chair of the Systemic Risk Council) Chair: Prof. Charles Goodhart, FMG, LSE The talk sparked animated discussions. |
| Year(s) Of Engagement Activity | 2018 |
| URL | http://www.systemicrisk.ac.uk/events/unelected-power-quest-legitimacy-central-banking-and-regulatory... |
| Description | Ralph De Haas (EBRD) |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | Regional |
| Primary Audience | Study participants or study members |
| Results and Impact | Seminar on 20th January 2020 Seminar Title: Finance and Carbon Emissions Abstract: We study the relation between financial structure and carbon emissions in a large panel of countries and industries. For given levels of economic and financial development, emissions per capita are lower in economies that are relatively more equity-funded. Industry-level analysis reveals two channels. First, deeper stock markets reallocate investment towards cleaner industries and, second, they allow carbon-intensive industries to produce green patents and reduce their energy intensity. Only one-tenth of these industry-level reductions in domestic emissions is offset by increased carbon embedded in imports. A firm-level analysis of an exogenous shock to the cost of equity in Belgium confirms our findings. The seminar sparked questions and discussions. |
| Year(s) Of Engagement Activity | 2020 |
| URL | http://www.systemicrisk.ac.uk/seminars/ralph-de-haas-0 |
| Description | Rebooting Financial Regulation: Ways and Means |
| Form Of Engagement Activity | Participation in an activity, workshop or similar |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Policymakers/politicians |
| Results and Impact | Date: 20th-21st January 2022, online Organisers: Kevin R. James (SRC/LSE), V. R. Narasimhan (NISM) Speakers: Peter Andrews (Oxera & SRC/LSE), Ajit Balakrishnan (Entrepreneur and columnist), Shri Ananta Barua (SEBI), Amil Dasgupta (LSE), Kevin James (SRC/LSE), Eva Micheler (SRC/LSE), C.K.G. Nair (NISM, FSLRC), M.S. Sahoo (IBBI) As India's Financial Sector Legislative Reform Commission (FSLRC) observes, avoiding a gap between the contemporary "requirements of the country and the present legal and regulatory arrangements" of the financial sector is crucial for economic success. In this conference we explored ways and means to reboot financial regulation to close this gap. On ways to improve financial regulation, we focused upon: i) redefining the objectives of financial regulation; ii) improving conduct regulation; iii) the impact of technology and financial regulation; iv) the issues posed by asset management and corporate governance; and v) legal methods to combat toxic culture in financial institutions. The conference examined key issues concerning the architecture of the regulatory system, drawing upon India's experience with the bold reform effort that the FSLRC began. The event sparked questions and discussions among the audience, and generated interests in the topic covered. |
| Year(s) Of Engagement Activity | 2022 |
| URL | https://www.systemicrisk.ac.uk/events/rebooting-financial-regulation-ways-and-means |
| Description | Rebooting UK Financial Regulation for a Post-Brexit World |
| Form Of Engagement Activity | Participation in an activity, workshop or similar |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Study participants or study members |
| Results and Impact | Organisers: Peter Andrews (Oxera & SRC/LSE), Kevin James (SRC/LSE), Eva Micheler (SRC/LSE) Inspired by the Treasury's consultation on its Financial Services Future Regulatory Framework Review, the London School of Economics, Systemic Risk Centre and Oxera jointly held the online conference "Rebooting UK Financial Regulation for a Post-Brexit World". After kicking off with an overview of the implications of the UK's new regulatory relationship with the EU, the conference focused on the Review's three main topics: 1. Aligning Financial Regulation with Broader Public Policy Goals; 2. Improving Regulation of Specific Sectors in the New UK-Focussed Regime; and 3. Improving Regulatory Accountability. |
| Year(s) Of Engagement Activity | 2021 |
| URL | https://www.systemicrisk.ac.uk/events/rebooting-uk-financial-regulation-post-brexit-world |
| Description | Risk Landscape: Review 2020 & Preview 2021 |
| Form Of Engagement Activity | Participation in an activity, workshop or similar |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Public/other audiences |
| Results and Impact | Speakers: Jon Danielsson (SRC/LSE), Peter Giger (Zurich Insurance), Mohit Joshi (Infosys), Grace Lordan (LSE Inclusion Initiative), Sneha Sanghvi (Westpac Banking Corporation) Chair: Lutfey Siddiqi (LSE & NUS RMI) Featuring C-suite and senior risk practitioners along with LSE's Jon Danielsson and Grace Lordan, this panel will take stock of the risk management challenges of 2020 and lessons learnt for the future. Are we framing and approaching risk in the right manner? What has worked and what has not in 2020? What are the practical challenges where the rubber hits the road, and what can academia help with? |
| Year(s) Of Engagement Activity | 2020 |
| URL | https://www.systemicrisk.ac.uk/events/risk-landscape-review-2020-preview-2021 |
| Description | Risk Landscape: Review 2021 & Preview 2022 |
| Form Of Engagement Activity | Participation in an activity, workshop or similar |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Public/other audiences |
| Results and Impact | Speakers: Bilal Hafeez (Macro Hive), Dixit Joshi (Deutsche Bank AG), Neal Pollard (Ernst & Young), Huw van Steenis (UBS), Suprita Vohra (Barclays), Kathy Yuan (SRC/LSE), Jean-Pierre Zigrand (SRC/LSE) Chair: Lutfey Siddiqi (LSE & NUS RMI) In this panel discussion, leading risk practitioners from the global financial system will join LSE academics to take stock of the risk management challenges experienced in 2021 and lessons learnt going into 2022. Did we frame and approach risk in the right manner? What has worked and what has not in 2021? What is it that truly surprised us? What are some of the open questions that we are still grappling with, and academia can help with? The event sparked questions and discussions among the audience, and generated interests in the topic covered. |
| Year(s) Of Engagement Activity | 2021 |
| URL | https://www.systemicrisk.ac.uk/events/risk-landscape-review-2021-preview-2022 |
| Description | Risk Landscape: Review 2022 & Preview 2023 |
| Form Of Engagement Activity | Participation in an activity, workshop or similar |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Public/other audiences |
| Results and Impact | Date: Tuesday 29th November 2022 Time: 11.00am-12.30pm GMT Speakers: Jón Daníelsson (SRC/LSE), Gene Frieda (PIMCO), Virginie Maisonneuve (AllianzGI), Pamela Qiu (Control Risks) Chair: Lutfey Siddiqi (LSE & NUS RMI) In this panel discussion, leading risk practitioners from the global financial system will join LSE academics to take stock of the risk management challenges experienced in 2022 and lessons learnt going into 2023. Did we frame and approach risk in the right manner? What has worked and what has not in 2022? What is it that truly surprised us? What are some of the open questions that we are still grappling with, and academia can help with? The event was co-hosted with NUS Risk Management Institute |
| Year(s) Of Engagement Activity | 2022 |
| URL | https://www.systemicrisk.ac.uk/events/risk-landscape-review-2022-preview-2023 |
| Description | Ron Anderson - Public address at Xinhua College of Sun Yat-sen University |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Undergraduate students |
| Results and Impact | This was public lecture organised by the Department of Finance and Trade of Xinhua College of Sun Yat-sen University. It attracted a large audience of undergraduate students, their teachers as well as some outsiders from the general public and press. The title of the talk I gave was "The Management of China's Debt Problem and Its Implication for Further Reforms". In this I tried to explain in plain language how China's response to the international financial crisis of 2008 mitigated the effects of global recession through major infrastructure investments. I tried to communicate how these actions had created new opportunities for development in China but at the same time created a debt problem which has constrained policy makers subsequently and which has inhibited the rebalancing of the Chinese economy toward greater private market provision of services and a reorientation trade. |
| Year(s) Of Engagement Activity | 2019 |
| Description | Ron Anderson - Two interviews with CCTV, one in July 2020 and another in September 2020, concerning the implications of China's GDP growth |
| Form Of Engagement Activity | A press release, press conference or response to a media enquiry/interview |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Public/other audiences |
| Results and Impact | Ron Anderson had two interviews with CCTV, one in July 2020 and another in September 2020, concerning the implications of China's GDP growth in Q2 and Q3 of 2020. |
| Year(s) Of Engagement Activity | 2020 |
| Description | Ron Anderson give a public lecture at Xinhua College of Sun Yat-sen University, Guangzhou November 2018 "Understanding China's Evolving Credit Risk Maze" |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | Regional |
| Primary Audience | Undergraduate students |
| Results and Impact | This was a public address primarily aimed at undergraduate students but with some general public attending. There was media coverage by local press which in this case means coverage area of Guandong Province (90 million population). |
| Year(s) Of Engagement Activity | 2018 |
| Description | Ronald W Anderson Ma Yinchu Economics Lecture Peking University April 2, 2018 "Assessing China's Debt Overhang: Risks and Policy Responses" |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Public/other audiences |
| Results and Impact | This was a two hour public lecture which was broadcast over Peking University's television network live and then made available as a podcast. Withing about one week of the event the podcast had been accessed more than 130,000 times. |
| Year(s) Of Engagement Activity | 2018 |
| Description | Rosa - CNBC interview on European issues |
| Form Of Engagement Activity | A press release, press conference or response to a media enquiry/interview |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Public/other audiences |
| Results and Impact | Brunello Rosa gave an interview with CNBC on 6th February 2019 and discussed European issues ahead of the May 2019 elections and Italy's third recession since 2008. |
| Year(s) Of Engagement Activity | 2019 |
| URL | https://www.cnbc.com/video/2019/02/06/euro-zone-could-face-recession-in-2020-analyst-says.html |
| Description | Rosa - Chatham House article "Italy thumbs its nose at EU" |
| Form Of Engagement Activity | Engagement focused website, blog or social media channel |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Industry/Business |
| Results and Impact | Brunello Rosa is the author of "Italy thumbs its nose at EU" in the Chatham House The World Today published in the April/May 2018 issue. He warns that Election will have repercussions for Europe. The piece sparks thoughts and discussion afterwards. |
| Year(s) Of Engagement Activity | 2018 |
| URL | https://www.chathamhouse.org/publications/twt/italy-thumbs-its-nose-eu |
| Description | Rosa - Financial crisis opinion piece |
| Form Of Engagement Activity | Engagement focused website, blog or social media channel |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Public/other audiences |
| Results and Impact | Opinion piece "The Makings of a 2020 Recession and Financial Crisis" by N Roubini and Brunello Rosa on 13 Sept 2018. Although the global economy has been undergoing a sustained period of synchronized growth, it will inevitably lose steam as unsustainable fiscal policies in the US start to phase out. Come 2020, the stage will be set for another downturn - and, unlike in 2008, governments will lack the policy tools to manage it. It sparked discussion and thoughts afterwards. |
| Year(s) Of Engagement Activity | 2018 |
| URL | https://www.project-syndicate.org/commentary/financial-crisis-in-2020-worse-than-2008-by-nouriel-rou... |
| Description | Rosa - TALENTED ITALIANS in THE UK at the Italian Chamber of Commerce and Industry for the UK |
| Form Of Engagement Activity | A formal working group, expert panel or dialogue |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Professional Practitioners |
| Results and Impact | Brunello Rosa participated in the formal working group "TALENTED ITALIANS in THE UK at the Italian Chamber of Commerce and Industry for the UK". The TIUKA's Members are Italians of success who want to give their contribution to strengthen further the relation of the Italian Community with Italy and the UK. The Association aims to maintain a link between the UK and Italy, collaborating with the other existing Anglo-Italian organisations with similar goals. |
| Year(s) Of Engagement Activity | 2018 |
| URL | https://www.italchamind.eu/tiuk_association/tiuk-association |
| Description | Rosa - media interview with Russia Today on global crisis |
| Form Of Engagement Activity | A press release, press conference or response to a media enquiry/interview |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Public/other audiences |
| Results and Impact | Brunello Rosa gave an interview with RT in October 2018. The Americans in general and the Trump administration in particular are never shy of extolling their economic achievements and not without merit - the American economy of late has indeed been looking great. But there's an increasing number of economists who claim this boom may be short-lived and is setting the stage for yet another global crisis. If the fall indeed comes, how hard is it likely to be? To discuss this, Oksana is joined by Brunello Rosa, founder and CEO at Rosa & Roubini Associates. |
| Year(s) Of Engagement Activity | 2018 |
| URL | https://www.youtube.com/watch?v=rSTgHcAbbm4 |
| Description | Rosa - regular newsletters "Making Sense of this World" |
| Form Of Engagement Activity | A magazine, newsletter or online publication |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Industry/Business |
| Results and Impact | Brunello Rosa is a regular contributor to the newsletter "Making sense of this world". The pieces spark thoughts and discussion afterwards. |
| Year(s) Of Engagement Activity | 2018,2019 |
| URL | https://content.rosa-roubini-associates.com/making-sense-of-this-world-archive/ |
| Description | Rzayev - Report "Factors influencing the decline in the number of public companies in the UK" featured in Bloomberg |
| Form Of Engagement Activity | A press release, press conference or response to a media enquiry/interview |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Industry/Business |
| Results and Impact | The Report "Factors influencing the decline in the number of public companies in the UK" featured in Bloomberg article "London Is Losing the SPAC Fight With New York" published in February 2021. The article reported that Rzayev et al's paper was illuminating in detailing some of the reasons for the U.K. stock market's shrinkage. One big problem is that the technology investor and analyst universe is not so well developed as elsewhere. A high-tech company may therefore feel it's going to be better understood in, say, the U.S., leading to a higher valuation. It may also reckon that investors there will be more constructively engaged. |
| Year(s) Of Engagement Activity | 2021 |
| URL | https://www.bloombergquint.com/gadfly/london-is-losing-the-spac-fight-with-new-york |
| Description | Saka - How state-owned banks in Turkey support the ruling party |
| Form Of Engagement Activity | Engagement focused website, blog or social media channel |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Public/other audiences |
| Results and Impact | Blog post on LSE European Politics and Policy blog. How state-owned banks in Turkey support the ruling party by Çagatay Bircan and Orkun Saka. |
| Year(s) Of Engagement Activity | 2019 |
| Description | Santiago Finance Workshop 2021 |
| Form Of Engagement Activity | Participation in an activity, workshop or similar |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Study participants or study members |
| Results and Impact | Marcela Valenzuela was part of the organizing committee of the Santiago Finance Workshop 2021, which was a two-day academic event hosted by the University of Chile. The aim of the SFW is to bring together international scholars and policymakers to Chile to discuss cutting-edge research in all areas of finance and financial economics, with special emphasis on capital markets and corporate finance. |
| Year(s) Of Engagement Activity | 2021 |
| URL | https://sfw.fen.uchile.cl/sfw/ |
| Description | Seminar - Adrian Alter (IMF) |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Study participants or study members |
| Results and Impact | Abstract: This paper studies the US housing market using a proprietary and comprehensive dataset covering nearly 90 million residential transactions over 1998-2018. First, we document the evolution of different types of investment purchases such as those conducted by short-term buyers, out-of-state buyers, and corporate cash investors. Second, we quantify the contributions of non-primary home buyers to the housing cycle. Our findings suggest that the share of short- term investors grew substantially in the run-up to the global financial crisis (GFC), which amplified the boom-bust cycle, while out-of-state buyers propped up prices in some areas during the recession. An instrumental variable approach is employed to establish a causal relationship between housing investors and prices. Finally, we show that the recent rise of shadow bank lending in the residential market is associated with riskier mortgages, and explore its implications for non-primary home buyers and its effects on house prices and rents. |
| Year(s) Of Engagement Activity | 2020 |
| URL | https://www.systemicrisk.ac.uk/seminars/non-primary-home-buyers-shadow-banking-and-us-housing-market |
| Description | Seminar - Ambrogio Cesa-Bianchi |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | Regional |
| Primary Audience | Study participants or study members |
| Results and Impact | A seminar was given by Ambrogio Cesa-Bianchi in October 2018 Speaker: Ambrogio Cesa-Bianchi (Bank of England) Seminar Title: Firm Heterogeneity, Credit Spreads, and Monetary Policy The seminar sparked thoughts and discussions. |
| Year(s) Of Engagement Activity | 2018 |
| URL | http://www.systemicrisk.ac.uk/seminars/ambrogio-cesa-bianchi |
| Description | Seminar - Andreas Uthemann (Bank of Canada & SRC) |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Study participants or study members |
| Results and Impact | Seminar Title: The Calming of Short-Term Market Fears and Its Long-Term Consequences: The Federal Reserve's Reaction to COVID-19 Abstract: We study the impact of five key Fed policy responses to the COVID-19 crisis on the stock market's fear of loss and fear of variability. Using a unique global dataset of option prices to construct the term structures of fear, up to ten years into the future, we find that FX swap lines have the most decisive impact on market fear, but only on the US and countries with access to the swaps. Liquidity support and macroprudential policies had a smaller but still significant impact, while policies aimed to support the wider economy did not affect fear. These results raise important questions on the trade-off between short-term market calming and long-term moral hazard, as well as the relative importance of central banks, and the importance of the Federal Reserve as a global liquidity provider. The seminar sparked questions and discussions afterwards. |
| Year(s) Of Engagement Activity | 2021 |
| URL | https://www.systemicrisk.ac.uk/seminars/calming-short-term-market-fears-and-its-long-term-consequenc... |
| Description | Seminar - André F. Silva (Federal Reserve Board) |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Study participants or study members |
| Results and Impact | Abstract: We document the propagation effects through supply chains of the most damaging cyberattack in history and the important role of banks in mitigating its impact. Customers of directly hit firms saw reductions in revenues, profitability, and trade credit relative to similar firms. The losses were larger for customers with fewer alternative suppliers and suppliers producing high-specificity inputs. Internal liquidity buffers and increased borrowing, mainly through bank credit lines at higher rates due to increased risk, helped affected customers to maintain investment and employment. However, the shock led to persisting adjustments to the supply chain network. |
| Year(s) Of Engagement Activity | 2020 |
| URL | https://www.systemicrisk.ac.uk/seminars/pirates-without-borders-propagation-cyberattacks-through-fir... |
| Description | Seminar - Angela Gallo |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | Regional |
| Primary Audience | Study participants or study members |
| Results and Impact | A seminar was given by Angela Gallo in February 2019. Speaker: Angela Gallo (Cass Business School) Seminar Title: Beyond Regulatory Arbitrage: Novel Evidence on ABCP Market The seminar sparked thoughts and discussions. |
| Year(s) Of Engagement Activity | 2019 |
| URL | http://www.systemicrisk.ac.uk/seminars/angela-gallo |
| Description | Seminar - Arie Gozluklu (Warwick Business School) |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Study participants or study members |
| Results and Impact | Date: Monday, 6th June 2022 Time: 1.00 - 2.00pm BST Speaker: Arie Gozluklu (Warwick Business School) Seminar title: Speculator Spreading Pressure and the Commodity Futures Risk Premium Abstract: This paper investigates the impact of speculative trading on the commodity futures risk premium. We focus on speculators' intra-commodity spread positions, and study the asset pricing implications of spreading pressure (SP), that is, spread positions scaled by open interest, on the cross-section of commodity futures returns. We document that SP negatively predicts futures excess returns. We propose a SP factor, a long-short portfolio based on SP that is priced in the commodity futures market, even after controlling for well-known factors. Our empirical tests show that the SP factor is linked to informational frictions that are introduced via commodity index investments. |
| Year(s) Of Engagement Activity | 2022 |
| URL | https://www.systemicrisk.ac.uk/seminars/speculator-spreading-pressure-and-commodity-futures-risk-pre... |
| Description | Seminar - Bige Kahraman Alper (Saïd Business School Oxford) |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Study participants or study members |
| Results and Impact | Date: Monday, 29th November 2021 Time: 1.00 - 2.00pm GMT Speaker: Bige Kahraman Alper (Saïd Business School Oxford) Seminar Title: ES Risks and Shareholder Voice Abstract: While shareholder proposals related to ES issues nearly always fail, we show that investors' support for these proposals contains information regarding future risks that firms face. Support levels are informative regarding the probability of negative tail returns that stem from future ES incidents. Examining the economic channels underlying this finding, we find that agency frictions contribute to proposal failure, leading to predictable tail events. Contrasting ES versus non-ES failed proposals within the same firm, we find that predictability is unique to ES initiatives; this is consistent with higher uncertainty regarding the value of ES initiatives exacerbating agency frictions. The event sparked questions and discussions among the audience, and generated interests in the topics covered. |
| Year(s) Of Engagement Activity | 2021 |
| URL | https://www.systemicrisk.ac.uk/seminars/es-risks-and-shareholder-voice |
| Description | Seminar - Daniel Beunza (Cass Business School) |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Study participants or study members |
| Results and Impact | Abstract: The unexpected ability of banks and markets to continue operating through the COVID-19 crisis has sparked renewed interest in the role of technology in organizational resilience. Existing organizational studies, however, have emphasized the role of compassion, sensemaking and managerial narratives, but have largely neglected integrating technology in them. Based on an ethnographic revisit of a Wall Street bank's response to 9/11, we propose an integrative model of organizational recovery as the iterative restoration of meaning and technology in ways that support each other. Our process model offers guidelines for managers leading banks and financial institutions towards a "new normal." First, a resilient response entails updating recovery narratives, from alleviating employee distress, to rebuilding operational capacity, to creating a compelling direction for the organization. Second, shaping the organization's long-term future requires managers to integrate the structural effects of new technology in their plans, including its mediating effect on roles and scripts. Third, recovery reopens political debates in the organization, and managers can shape their outcome through the timing of their decisions. |
| Year(s) Of Engagement Activity | 2020 |
| URL | https://www.systemicrisk.ac.uk/seminars/purpose-built-integrating-meaning-and-technology-banks-recov... |
| Description | Seminar - Elise Gourier |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | Regional |
| Primary Audience | Study participants or study members |
| Results and Impact | A seminar was given by Elise Gourier in June 2018. Speaker: Elise Gourier (Queen Mary University of London) Seminar Title: How Alternative Are Alternative Investments? The Case of Private Equity Funds The seminar sparked thoughts and discussions. |
| Year(s) Of Engagement Activity | 2018 |
| URL | http://www.systemicrisk.ac.uk/seminars/elise-gourier |
| Description | Seminar - Elise Payzan-LeNestour |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | Regional |
| Primary Audience | Study participants or study members |
| Results and Impact | A seminar was given by Elise Payzan-LeNestour in April 2018. Speaker: Elise Payzan-LeNestour (UNSW Australia Business School) Seminar Title: The Waterfall Illusion, and How Prior Exposure to Extreme Risk Distorts Risk Perception The seminar sparked thoughts and discussions. |
| Year(s) Of Engagement Activity | 2018 |
| URL | http://www.systemicrisk.ac.uk/seminars/elise-payzan-lenestour |
| Description | Seminar - Emil Verner (MIT Sloan) |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Study participants or study members |
| Results and Impact | Abstract: We examine historical banking crises through the lens of bank equity declines, which cover a broad sample of episodes of banking distress both with and without banking panics. To do this, we construct a new dataset on bank equity returns and narrative information on banking panics for 46 countries over the period 1870- 2016. We find that even in the absence of panics, large bank equity declines are associated with substantial credit contractions and output gaps. While panics can be an important amplification mechanism, our results indicate that panics are not necessary for banking crises to have severe economic consequences. Furthermore, panics tend to be preceded by large bank equity declines, suggesting that panics are the result, rather than the cause, of earlier bank losses. We also use bank equity returns to uncover a number of forgotten historical banking crises and to create a banking crisis chronology that distinguishes between bank equity losses and panics. |
| Year(s) Of Engagement Activity | 2020 |
| URL | https://www.systemicrisk.ac.uk/seminars/banking-crises-without-panics |
| Description | Seminar - Gianluca Benigno (University of Lausanne and Federal Reserve Bank of New York) |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Study participants or study members |
| Results and Impact | Date: Monday, 21st November 2022 Time: 1.00 - 2.00pm GMT Venue: Room 1.06, The Conference Room, 1st floor, Marshall Building (map) Speaker: Gianluca Benigno (University of Lausanne and Federal Reserve Bank of New York) Seminar title: The Financial (In)Stability Real Interest Rate, R** Abstract: We introduce the concept of financial stability real interest rate using a macroeconomic banking model with an occasionally binding financing constraint as in Gertler and Kiyotaki (2010). The financial stability interest rate, r**, is the threshold interest rate that triggers the constraint being binding. We discuss r** and its dynamics, and show that persistently low real rates induce an increase in financial vulnerabilities and a consequent decline in the level of r**. We also provide a measure of r** for the US economy and discuss its evolution over the past 50 years, highlighting that during periods of financial stress that are associated with a decline in r** , the real rate tracks r** - a feature of monetary policy known as "Greenspan's put". |
| Year(s) Of Engagement Activity | 2022 |
| URL | https://www.systemicrisk.ac.uk/seminars/financial-instability-real-interest-rate-r |
| Description | Seminar - Giovanni Calice |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | Regional |
| Primary Audience | Study participants or study members |
| Results and Impact | A seminar was given by Giovanni Calice in December 2018. Speaker: Giovanni Calice (Loughborough University) Seminar Title: The Term Structure of Sovereign CDS and the Cross-Section of Exchange Rate Predictability The seminar sparked thoughts and discussions. |
| Year(s) Of Engagement Activity | 2018 |
| URL | http://www.systemicrisk.ac.uk/seminars/giovanni-calice |
| Description | Seminar - Ian Dew-Becker (Kellogg School of Management) |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Study participants or study members |
| Results and Impact | Date: Monday, 5th December 2022 Time: 1.00 - 2.00pm GMT Speaker: Ian Dew-Becker (Kellogg School of Management) Seminar title: Risk preferences implied by synthetic options Abstract: A large literature finds that equity index options are overpriced in the historical data (starting in the 1980s), earning low returns and strongly negative alphas. In a representative agent framework, that fact implies that marginal utility is convex relative to stock market wealth - risk aversion rises as wealth falls. This paper provides novel evidence on risk aversion and the shape of marginal utility using nearly a century of data on synthetic options, constructed from dynamic portfolios of the market and the riskless asset. In contrast to exchange-traded options, synthetic options show no evidence of overpricing (i.e., of negative alpha), and, therefore, no evidence of risk aversion rising as wealth falls. The divergence in results between listed and synthetic options can be explained by segmentation in the derivatives market, due to regulatory constraints and illiquidity. As those constraints have relaxed in the past 10-20 years, the returns on listed options have converged to those on synthetic options. |
| Year(s) Of Engagement Activity | 2022 |
| URL | https://www.systemicrisk.ac.uk/seminars/risk-preferences-implied-synthetic-options |
| Description | Seminar - Jialan Wang (University of Illinois at Urbana-Champaign) |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Study participants or study members |
| Results and Impact | Abstract: We examine the impact of the COVID-19 economic crisis on business and consumer bankruptcies in the United States using real-time data on the universe of filings. Historically, bankruptcies have closely tracked the business cycle and contemporaneous unemployment rates. However, this relationship has reversed during the COVID-19 crisis thus far. While aggregate filing rates were very similar to 2019 levels prior to the severe onset of the pandemic, filings by consumers and small businesses dropped dramatically starting in mid-March, contrary to media reports and many experts' expectations. The total number of bankruptcy filings is down by 27 percent year-over-year between January and August. Consumer and business Chapter 7 filings rebounded moderately starting in mid-April and stabilized around 20 percent below 2019 levels, but Chapter 13 filings remained at 55-65 percent below 2019 levels through the end of August. In contrast to the 2007-9 recession, states with a larger increase in unemployment between April and July experienced greater drops in bankruptcies. Although they make up a small share of overall bankruptcies, Chapter 11 filings by large corporations have increased since 2019, and are up nearly 200 percent year-over-year from January through August. These patterns suggest that the financial experiences of consumers, small businesses, and large corporations have diverged during the COVID-19 crisis. Large businesses have continued to seek and receive relief from the bankruptcy system as they would during a normal recession, and relatively wealthy homeowners have on average benefited from the fiscal stimulus and housing moratoria mandated by the CARES Act and other policies. However, non-homeowners and small businesses may face financial, physical, and technological barriers to accessing the bankruptcy system, especially in the areas hardest-hit by unemployment. |
| Year(s) Of Engagement Activity | 2021 |
| URL | https://www.systemicrisk.ac.uk/seminars/bankruptcy-and-covid-19-crisis |
| Description | Seminar - José Scheinkman (Columbia) |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Study participants or study members |
| Results and Impact | Date: Tuesday, 10th May 2022 Time: 1.00 - 2.00pm BST Venue: Marshall Building, LSE (map) Speaker: José Scheinkman (Columbia) Seminar title: Optimal forest preservation over time and space in the Brazilian Amazon |
| Year(s) Of Engagement Activity | 2022 |
| URL | https://www.systemicrisk.ac.uk/seminars/optimal-forest-preservation-over-time-and-space-brazilian-am... |
| Description | Seminar - Loriana Pelizzon (Goethe University Frankfurt) |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Study participants or study members |
| Results and Impact | Date: Monday, 28th February 2022 Time: 1.00 - 2.00pm GMT Speaker: Loriana Pelizzon (Goethe University Frankfurt) Seminar Title: The Carrot and the Stick: Bank Bailouts and the Disciplining Role of Board Appointments Abstract: This paper empirically examines the Capital Purchase program (CPP) under TARP that was used by the U.S. government to bail out distressed banks with equity infusions. We hypothesize that a feature of the CPP, namely the ability of the government to appoint directors on the assisted bank's board in case it missed six quarterly dividend payments, was a governance intrusion that banks would wish to avoid. Therefore, it would address both (i) the ex ante moral hazard that banks would take actions that increased the likelihood of a future government bailout as well as (ii) the ex post moral hazard that banks would undertake actions after receiving bailout funding that would increase the government's risk exposure. We find evidence consistent with this hypothesis: in the empirical distribution of missed payments there is a sharp discontinuity at five and the probability of a sixth missed payment after missing five payments is sharply lower than the other transition probabilities. The appointment of government directors improves the bank's profitability and reduces its risk. As a special case, the firing of Citicorp's CEO in the third quarter of 2012 after the appointment of new directors on its board, pursuant to government participation in its common equity, induced a sharp exodus of assisted banks from the CPP. The event sparked questions and discussions among the audience, and generated interests in the topics covered. |
| Year(s) Of Engagement Activity | 2022 |
| URL | https://www.systemicrisk.ac.uk/seminars/carrot-and-stick-bank-bailouts-and-disciplining-role-board-a... |
| Description | Seminar - Luc Laeven (European Central Bank) |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Study participants or study members |
| Results and Impact | Date: Monday, 14th March 2022 Time: 1.00 - 2.00pm GMT Speaker: Luc Laeven (European Central Bank) Seminar Title: Systemic Risk and Monetary Policy: The Haircut Gap Channel of the Lender of Last Resort Abstract: We show that lender of the last resort (LOLR) policy contributes to higher bank interconnectedness and systemic risk. Using novel micro-level data, we analyze the haircut gap channel of LOLR - the difference between the private market and central bank haircuts. LOLR increases interconnectedness by incentivizing banks to pledge higher haircut gap bonds, especially issued by similar banks and by systemically important banks. LOLR also exacerbates cross-pledging of bank bonds. Higher haircut gaps only incentivize banks, not other intermediaries without LOLR access, to increase bank bond holdings. Finally, LOLR revives bank bond issuance associated with higher haircut gaps. The event sparked questions and discussions among the audience, and generated interests in the topics covered. |
| Year(s) Of Engagement Activity | 2022 |
| URL | https://www.systemicrisk.ac.uk/seminars/systemic-risk-and-monetary-policy |
| Description | Seminar - Marcin Kacperczyk (Imperial College London) |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Study participants or study members |
| Results and Impact | Date: Monday, 24th January 2022 Time: 1.00 - 2.00pm GMT Speaker: Marcin Kacperczyk (Imperial College London) Seminar Title: Carbon Emissions and the Bank-Lending Channel Abstract: We study how firm-level carbon emissions affect bank lending and, through this channel, real, financial, and environmental outcomes in a sample of global firms with syndicated loans. For identification, we use bank-level commitments to carbon neutrality to proxy for changes in banks' green preferences and, via these bank commitments, shocks to firms with previous credit from these banks. We find that firms with higher (lower) scope-1 emission levels previously borrowing from banks making commitments subsequently receive less (more) total bank credit. The economic mechanism at play is bank credit supply, and results are consistent with bank preferences for green rather than differential response to an increased firm risk. The reduction in bank lending to brown firms triggers the reduction in these firms' total debt, leverage, total assets, and real investments. The effects are non-linear, with a strong cut (increase) in lending and investments for brown (green) firms, and mild effects for other firms. Despite the real and financial effects, we find no improvement in hard firm-level environmental scores for brown firms, but only evidence consistent with firms' greenwashing. Overall, our results suggest that banks affect carbon emissions via credit reallocation (from brown to green firms) rather than via providing loans to brown firms for the investment necessary to reduce carbon emissions. The event sparked questions and discussions among the audience, and generated interests in the topics covered. |
| Year(s) Of Engagement Activity | 2022 |
| URL | https://www.systemicrisk.ac.uk/seminars/carbon-emissions-and-bank-lending-channel |
| Description | Seminar - Mariassunta Giannetti (SSE) |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Study participants or study members |
| Results and Impact | Seminar Title: Who Lends Before Banking Crises? Evidence from the International Syndicated Loan Market Abstract: We show that foreign lenders and low market share lenders extend more credit in comparison to other lenders during lending booms leading to banking crises, but not during other credit expansions. Less established lenders also increase the amount of credit they extend to riskier borrowers without asking for collateral or imposing covenants and higher interest rates. Our results suggest that taking lenders' characteristics into account could provide a useful barometer for macroprudential policies. The seminar sparked questions and discussion afterwards. |
| Year(s) Of Engagement Activity | 2021 |
| URL | https://www.systemicrisk.ac.uk/seminars/Mariassunta-Giannetti |
| Description | Seminar - Martin Scheicher |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | Regional |
| Primary Audience | Study participants or study members |
| Results and Impact | A seminar was given by Martin Scheicher in November 2018. Speaker: Martin Scheicher (European Central Bank) Seminar Title: The Anatomy of the Euro Area Interest Rate Swap Market The seminar sparked thoughts and discussions. |
| Year(s) Of Engagement Activity | 2018 |
| URL | http://www.systemicrisk.ac.uk/seminars/martin-scheicher |
| Description | Seminar - Orkun Saka (University of Sussex) |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Study participants or study members |
| Results and Impact | Abstract: Very few papers in the literature have focused on what drives actual government policies after financial crises. We first present a simple model of post-crisis policymaking driven by both public and private interests. Using the most comprehensive dataset available on de-facto financial liberalization across 94 countries between 1973 and 2015, we show that financial crises can trigger policy reversals, i.e. they can lead to more government intervention and a process of re-regulation of financial markets. We also find that post-crisis interventions are common only in democratic countries suggesting a demand channel from public to policymakers. However, by using a plausibly exogenous political setting muting policymakers' accountability, we document that democratic leaders who do not have re-election concerns are substantially more likely to intervene in financial markets after crises (but not before), implying that strong private interests are also at play. These interventions due to private interests are reflected especially in controversial policy areas such as interest rate controls or bank entry barriers and not in areas such as banking supervision or capital controls that are usually considered as more aligned with public interest. |
| Year(s) Of Engagement Activity | 2020 |
| URL | https://www.systemicrisk.ac.uk/seminars/financial-policymaking-after-crises-public-vs-private-intere... |
| Description | Seminar - Pasquale Della Corte (Imperial College London) |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Study participants or study members |
| Results and Impact | Date: Monday, 8th November 2021 Time: 1.00 - 2.00pm GMT Speaker: Pasquale Della Corte (Imperial College London) Seminar Title: Best Short Abstract: We infer investors' expectations about future stock returns through a measure of short conviction that exploits net short positions disclosed at the investor-stock level for European stock markets. A strategy that sells high-conviction stocks and buys low-conviction stocks, named Best Short, generates a risk-adjusted excess return that is larger than 8% per annum and differs from the performance of traditional strategies based on aggregate short interest. Its profitability, moreover, cannot be explained by transaction costs, stock characteristics, frictions in the securities lending market, leverage constraints, and measures of price inefficiency. The event sparked questions and discussions among the audience, and generated interests in the topics covered. |
| Year(s) Of Engagement Activity | 2021 |
| URL | https://www.systemicrisk.ac.uk/seminars/best-short |
| Description | Seminar - Pingle Wang (University of Texas at Dallas) |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Study participants or study members |
| Results and Impact | Date: Monday, 31st October 2022 Time: 1.00 - 2.00pm GMT Speaker: Pingle Wang (University of Texas at Dallas) Seminar title: Unmasking mutual fund derivative use Abstract: Using new SEC data, we study how funds use derivatives and how derivatives contribute to performance. Despite small portfolio weights, derivatives significantly impact funds' leverage and contribute largely to returns. Contrary to prior research concluding derivatives are used for hedging, we find most derivative users buy index derivatives to amplify market exposure. Surprisingly, they underperform nonusers yet receive more flows. Using COVID-19 pandemic as a shock to evaluate explanations, we find they suffered a double whammy: failed to outperform nonusers by suffering losses from long derivative positions during the crash and from newly opened short positions when markets unexpectedly rebounded. |
| Year(s) Of Engagement Activity | 2022 |
| URL | https://www.systemicrisk.ac.uk/seminars/unmasking-mutual-fund-derivative-use |
| Description | Seminar - Roberto Gomez Cram (London Business School) |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Study participants or study members |
| Results and Impact | Abstract: We advance the hypothesis and establish empirically that investors' expectations adjust slowly to Central Banks' messages. From the videos of post-FOMC-meeting press conferences, we extract the words, and timestamp them at the millisecond. We align the transcripts with high-frequency data for several financial assets to provide granular evidence on the investors' expectations formation process. When the Chairman discusses the changes between current and previous policy statement, price volatility and trading volume spike dramatically, and prices move in the same direction as they did around the statement release. Our approach allows us to quantify in monetary terms the value of information rigidity. |
| Year(s) Of Engagement Activity | 2021 |
| URL | https://www.systemicrisk.ac.uk/seminars/real-time-price-discovery-verbal-communication-method-and-ap... |
| Description | Seminar - Shaojun Zhang (The Ohio State University) |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Study participants or study members |
| Results and Impact | Date: Monday, 27th February 2023 Time: 1.00 - 2.00pm GMT Speaker: Shaojun Zhang (The Ohio State University) Seminar title: Carbon Premium: Is It There? Abstract: The carbon premium refers to the excess return associated with the carbon-brown firms and is the focus of several recent influential studies. After accounting for the data release lag and with value weighting, less carbon-intensive firms deliver higher returns in the U.S., while there is no excess return associated with total carbon emissions and emission growth. Internationally, the carbon return is zero on average and is lower in countries with strong in-sample green shocks during the transition, such as sustainable flows and climate concerns. After controlling for the in-sample shocks, the carbon return is higher in countries more exposed to climate change. |
| Year(s) Of Engagement Activity | 2023 |
| URL | https://www.systemicrisk.ac.uk/seminars/carbon-premium-it-there |
| Description | Seminar - Stefano Ramelli (University of Zurich) |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Study participants or study members |
| Results and Impact | Date: Monday, 14th June 2021 Time: 1.00 - 2.00pm BST Speaker: Stefano Ramelli (University of Zurich) Seminar Title: Do Institutional Investors Stabilize Equity Markets in Crisis Periods? Evidence from COVID-19 Abstract: During the COVID-19 market crash, U.S. stocks with higher and more active institutional ownership performed worse. The effect was stronger when institutional investors experienced larger client outflows and held more financially exposed portfolios. This relation holds even when controlling for changes in analysts' earnings forecasts, suggesting that stocks held more by institutions exhibited a larger wedge between stock price drops and firm fundamentals. Portfolio changes through the first quarter of 2020 reveal that institutional investors prioritized corporate financial strength over "soft" environmental and social performance. Trading data from a large discount brokerage (Robinhood) confirm that retail investors acted as liquidity providers. Overall, the results suggest that when a tail risk realizes, institutional investors amplify price crashes by fire-selling and seeking shelter in "hard" measures of firm resilience. The event sparked questions and discussions among the audience, and generated interests in the topics covered. |
| Year(s) Of Engagement Activity | 2021 |
| URL | https://www.systemicrisk.ac.uk/seminars/do-institutional-investors-stabilize-equity-markets-crisis-p... |
| Description | Seminar - Steven Heston (University of Maryland) |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Study participants or study members |
| Results and Impact | Date: Monday, 21st March 2022 Time: 1.00 - 2.00pm GMT Venue: Room 1.06, The Marshall Building, LSE (map) or online via Zoom Speaker: Steven Heston (University of Maryland) Seminar Topic: Seasonal Momentum in Variance Risk Premia Abstract: This paper proposes a new approach for implementing "equity VIX portfolios'' in settings where the number of traded options is limited. The resulting values are the prices of portfolios designed to best replicate the payoffs of variance swaps, and they are also interpretable as implied variances. We show that our approach outperforms other methods, such as the CBOE's own VIX formula, both in artificial and actual data. Using these portfolios, we document seasonal momentum in option returns, the tendency of stocks whose options performed well at periodic lags to continue their good performance in the future. A long-short portfolio based on seasonal momentum achieves a pre-cost Sharpe ratio of 3.05 annualized. |
| Year(s) Of Engagement Activity | 2022 |
| URL | https://www.systemicrisk.ac.uk/seminars/seasonal-momentum-variance-risk-premia |
| Description | Seminar - Thomas Gehrig (University of Vienna) |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Study participants or study members |
| Results and Impact | Seminar Title: Speculative and Precautionary Demand for Liquidity in Competitive Banking Markets Abstract: We demonstrate that the co-existence of different motives for liquidity preferences profoundly affects the efficiency of financial intermediation. Liquidity preferences arise because consumers wish to take precautions against sudden and unforeseen expenditure needs, and because investors want to speculate on future investment opportunities. Without further frictions, the co-existence of these motives enables banks to gain efficiencies from combining liquidity insurance and credit intermediation. With standard financial frictions, banks cannot reap such economies of scope. Indeed, the co-existence of a precautionary and a speculative motive can cause efficiency losses which would not occur if there were only a single motive. Specifically, if the arrival of profitable future investment opportunities is sufficiently likely, such co-existence implies inefficient separation, pooling, or even non-existence of pure strategy equilibria. This suggests that policy implications derived solely from a single motive for liquidity demand can be futile. The seminar sparked questions and discussions. |
| Year(s) Of Engagement Activity | 2021 |
| URL | https://www.systemicrisk.ac.uk/seminars/speculative-and-precautionary-demand-liquidity-competitive-b... |
| Description | Seminar - Umberto Cherubini |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | Regional |
| Primary Audience | Study participants or study members |
| Results and Impact | A seminar was given by Umberto Cherubini in March 2019. Speaker: Umberto Cherubini (Università Di Bologna) Seminar Title: Credit Indexes and Simultaneous Defaults The seminar sparked thoughts and discussions. |
| Year(s) Of Engagement Activity | 2019 |
| URL | http://www.systemicrisk.ac.uk/seminars/umberto-cherubini |
| Description | Seminar - Valeri Sokolovski (HEC Montréal) |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Study participants or study members |
| Results and Impact | Date: Monday, 23rd May 2022 Time: 1.00 - 2.00pm BST Speaker: Valeri Sokolovski (HEC Montréal) Seminar title: Hedge Funds and Financial Intermediaries (co-authored with Magnus Dahlquist, Simon Rottke and Erik Sverdrup) Abstract: Hedge funds and financial intermediaries are connected through their prime brokerage relationship. We find that systematic financial intermediary risk is important for understanding the cross-section of hedge fund returns. We show that systematic shocks propagate from prime brokers to hedge funds and not the reverse. There is little evidence that idiosyncratic financial intermediary risk matters. We evaluate if large adverse shocks to individual prime brokers propagate to their clients, finding a significant impact only in the Lehman bankruptcy case. This impact, however, was mitigated for funds with multiple prime brokers, suggesting that even extreme prime broker shocks are diversifiable. |
| Year(s) Of Engagement Activity | 2022 |
| URL | https://www.systemicrisk.ac.uk/seminars/hedge-funds-and-financial-intermediaries |
| Description | Seminar - Vasso Ioannidou (Bayes Business School) |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Study participants or study members |
| Results and Impact | Date: Monday, 27th September 2021 Time: 1.00 - 2.00pm BST Speaker: Vasso Ioannidou (Bayes Business School) Seminar Title: Do Low Interest Rates Jeopardise Your Retirement? Abstract: We study the effect changes in interest rates have on the risk-taking and risk-shifting incentives of defined-benefit (DB) corporate pension plans. We find that in the era of low interest rates, pension plans' risk-taking incentives become dominant. Using a difference-in-differences analysis based on an exogenous shock to the discount rates of pension liabilities in the United States (MAP-21), we find that increases in interest rates reduce risk-taking in pension asset allocations. We also find that increases in interest rates decrease the probability of DB plan freezes, which shift pension risk from sponsor firms to employees. These results underscore possible unintended consequences of low interest rate policies. The event sparked questions and discussions among the audience, and generated interests in the topics covered. |
| Year(s) Of Engagement Activity | 2021 |
| URL | https://www.systemicrisk.ac.uk/seminars/do-low-interest-rates-jeopardise-your-retirement |
| Description | Seminar - Xiao Xiao (Bayes Business School) |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Study participants or study members |
| Results and Impact | Date: Monday, 13th March 2023 Time: 1.00 - 2.00pm GMT Venue: Room 1.06, The Conference Room, 1st floor, Marshall Building (map) Speaker: Xiao Xiao (Bayes Business School) Seminar title: Signed Option Trading and Stock Market Anomalies Abstract: This paper examines how options traders trade daily stock market mispricing measured by short-term past return and put-call option volatility spread. Anomaly return is 7.31 basis points per day when customer option traders trade along with the anomaly signal and is insignificant when they trade against it. This effect is more pronounced for out-of-money options. Copycat trades by other institutional investors and delta-hedging trades by option market makers help the correction of mispricing. |
| Year(s) Of Engagement Activity | 2023 |
| URL | https://www.systemicrisk.ac.uk/seminars/signed-option-trading-and-stock-market-anomalies |
| Description | Seminar - Yi Huang |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | Regional |
| Primary Audience | Study participants or study members |
| Results and Impact | A seminar was given by Yi Huang in March 2018. Speaker: Yi Huang (The Graduate Institute of International and Development Studies) Seminar Title: TechFin in China: Credit Market Completion and its Growth Effect The seminar sparked thoughts and discussions. |
| Year(s) Of Engagement Activity | 2018 |
| URL | http://www.systemicrisk.ac.uk/seminars/yi-huang |
| Description | Seminar - Çagatay Bircan (EBRD) |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Study participants or study members |
| Results and Impact | Abstract: We study how private equity (PE) firms generate returns for their investors, by using detailed confidential textual data to study their value creation plans and actions. We show that PE firms follow a rich variety of plans and manage to implement most of them. They actively monitor their investments and introduce new plans to create additional value or turn around deals that are not performing up to scratch. The number of initial value creation plans does not explain the variation in returns investors eventually receive. But the share of plans that a fund successfully implements is a strong and positive predictor of returns. We also show that PE firms improve operational efficiency: productivity increases as PE-backed companies ramp up investment, employment, sales, and reduce their price markups, which allows them to gain substantial market shares. The majority of the operational improvements instigated by PE firms persist even after they fully exit their investments. Finally, we show that most of these operational changes help explain eventual returns. |
| Year(s) Of Engagement Activity | 2020 |
| URL | https://www.systemicrisk.ac.uk/seminars/value-creation-private-equity |
| Description | Taking the Floor: Models, Morals and Management in a Wall Street Trading Room |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Public/other audiences |
| Results and Impact | A talk by Daniel Beunza on 11th October 2019. Wall Street banks need to rethink their use of financial models according to Daniel Beunza in his new book Taking the Floor: Models, Morals and Management in a Wall Street Trading Room, which he will talk about in this lecture. A decade after the global financial crisis, a narrow emphasis on structural reform has left a problematic bank culture largely unchanged. Based on extensive research in a Wall Street derivatives trading room, Taking the Floor considers how financial organizations should be redesigned to address the moral shortcomings that culminated in the crisis. Beunza's talk first considers instances in which financial models are effectively used, tracing the presence of extraordinary returns to the integration of traders across desks, which reduced the risk of blind spots posed by the models. Second, Beunza warns that the use of models in risk management can create perceptions of injustice, leading to moral disengagement. Beunza argues for strengthening informal norms and supervisory relationships in banks, bringing elements of traditional investment banking partnerships back into contemporary Wall Street. The talk sparked interactions and questions. |
| Year(s) Of Engagement Activity | 2019 |
| URL | http://www.systemicrisk.ac.uk/events/taking-floor-models-morals-and-management-wall-street-trading-r... |
| Description | Tasca - invited keynote speech on cryptocurrencies at the European Commission |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Policymakers/politicians |
| Results and Impact | Paolo Tasca was invited to give a keynote speech at the conference "Cryptocurrencies: Opportunities and risks" at the European Commission in Brussels on 26 Feb 2018. The talk sparked discussion and thoughts on the topic. |
| Year(s) Of Engagement Activity | 2018 |
| Description | Tasca - joint seminar OMFIF and Czech Central Bank named The Future of Money: Risks and Returns |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Policymakers/politicians |
| Results and Impact | Paolo Tasca contributed to the discussions that took place during a joint seminar OMFIF and Czech Central Bank named The Future of Money: Risks and Returns on 20 March 2018. The activity sparked thoughts and discussions on the topic. |
| Year(s) Of Engagement Activity | 2018 |
| URL | https://www.omfif.org/meetings/policy/20180318-omfif-czech-national-bank-digital-meeting/ |
| Description | Technology in Finance, Law and Regulation - Conference |
| Form Of Engagement Activity | Participation in an activity, workshop or similar |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Professional Practitioners |
| Results and Impact | The conference was hosted by SRC on 16th May 2019. Speakers: Tomaso Aste (UCL), Iris Chiu (UCL), Jon Danielsson (LSE), Anna Donovan (UCL), David Fox (University of Edinburgh), Jonathan Liebenau (LSE), Eva Micheler (LSE), Andrew Murray (LSE), Philipp Paech (LSE), Francisco Rivadeneyra (Bank of Canada), Matteo Solinas (Victoria University of Wellington), Priscilla Toffano (IMF), Dirk Zetzsche (University of Luxembourg). The conference explores the use of technology in financial markets from the perspectives of finance, law and regulation. The event covers payment systems, cryptocurrencies and property law, digital tokens, sustainable finance, regulatory technology and the use of artificial intelligence for financial regulation. The conference sparked questions and discussions afterwards. |
| Year(s) Of Engagement Activity | 2019 |
| URL | http://www.systemicrisk.ac.uk/TechBARAC |
| Description | The Politics of Equality, the "Populist Moment" and the Power of New Technologies |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Public/other audiences |
| Results and Impact | A talk given by the prime minister of Iceland Katrín Jakobsdóttir on 2nd May 2019. Insecurities generated by globalisation, migration, and transformative technologies have created new societal divisions in liberal democracies and exacerbated the dislocation between personal identities and political loyalties. Since the Great Recession, the populist/authoritarian Right has profited from this trend, which has been accompanied by a critique of contemporary politics as being too technocratic and distant from the people. In her talk, Katrín Jakobsdóttir, the Prime Minister of Iceland, will argue that a renewed focus on the politics of equality is needed to respond to authoritarian tendencies and to the social challenges posed by the "fourth industrial revolution." Referring to her own political experience and to various forms of collective action - such as the #metoo movement - she makes the case for a democratic renewal based on social justice, gender equality and the green economy. The talk sparked very active interactions and questions afterwards |
| Year(s) Of Engagement Activity | 2019 |
| URL | http://www.systemicrisk.ac.uk/events/politics-equality-populist-moment-and-power-new-technologies |
| Description | The Power Law: venture capital and the art of disruption |
| Form Of Engagement Activity | Participation in an activity, workshop or similar |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Public/other audiences |
| Results and Impact | Date: Monday 7th February 2022 Speaker: Sebastian Mallaby (Council on Foreign Relations & SRC) Chair: Minouche Shafik (LSE) Investing always involves bets on an uncertain future, but venture capitalists face uncertainty of an extreme sort. How do they decide which startups have a chance of making it? How do they impact the economy and society? And why is venture capital spreading globally? Sebastian Mallaby (@scmallaby) is the Paul A Volcker Senior Fellow in International Economics at the Council on Foreign Relations. Minouche Shafik is the Director of the London School of Economics and Political Science. They had a lively conversation on the power law - venture capital industry and social influence. The event sparked questions and discussions among the audience, and generated interests in the topic covered. |
| Year(s) Of Engagement Activity | 2022 |
| URL | https://www.systemicrisk.ac.uk/events/power-law-venture-capital-and-art-disruption |
| Description | The Regulation and Operation of Modern Financial Markets - conference |
| Form Of Engagement Activity | Participation in an activity, workshop or similar |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Study participants or study members |
| Results and Impact | A conference held on 5-6 September 2019 in Unversity of Iceland. Organisers: Mathieu Rosenbaum (École Polytechnique), Jean-Pierre Zigrand (London School of Economics), Ásgeir Jónsson (University of Iceland, Central Bank of Iceland), Jon Þór Sturluson (The Financial Supervisory Authority, Iceland) and Hersir Sigurgeirsson (University of Iceland) The conference studies the operations and workings of modern financial markets and their interactions with, and needs for, financial regulations. Topics include the market microstructure (including algorithmic and high-frequency trading in fast markets), the effects of this microstructure on liquidity, efficiency and stability and the real-world effects and implementations of financial regulations, including regtech. We aim to achieve this by bringing together practitioners, regulators and academic researchers and create a fertile environment for discussion. The conference sparked questions and interactions and follow-up events. |
| Year(s) Of Engagement Activity | 2019 |
| URL | http://www.systemicrisk.ac.uk/financial-markets-conference |
| Description | The Third International Annual Capital Markets Conference 2022 |
| Form Of Engagement Activity | Participation in an activity, workshop or similar |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Public/other audiences |
| Results and Impact | The National Institute of Securities Markets (NISM) along with the Systemic Risk Centre (SRC) at the London School of Economics (LSE) organised The Third Annual International Capital Markets Conference 2022 on "Role of Capital Markets for Sustainable Growth of Economy" sponsored by State Bank of India. The conference was held in Mumbai at the NISM campus on 15-16 December, 2022. KEY THEMES Broad conference themes include the following: Sustainable Capital Markets and Investments; Linkages between Financial Markets and Real Economy; Regulation and Financial Market Integrity; Fund Raising - Valuations and Disclosures; Changing Profile of Investor Segment in Indian Markets; Geopolitical Risks and Securities Markets Response; Institutional Investors and Governance. |
| Year(s) Of Engagement Activity | 2022 |
| URL | https://www.nism.ac.in/conferences/third-annual-international-capital-markets-conference/ |
| Description | The Wealth Effect: How the Great Expectations of the Middle Class Have Changed the Politics of Banking Crises |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Public/other audiences |
| Results and Impact | A talk by Jeff Chwieroth and Andrew Walters on 4th April 2019. The rising wealth of middle class households and voters has transformed the politics of banking crises. In this lecture, Jeffrey Chwieroth and Andrew Walter explain how mass political demand has contributed to rising financial fragility and political instability and discontent in contemporary democracies. In their new book, The Wealth Effect: How the Great Expectations of the Middle Class Have Changed the Politics of Banking Crises, Jeffrey Chwieroth and Andrew Walter use extensive historical and contemporary evidence to demonstrate that the politics of major banking crises have been transformed by the "wealth effect": rising middle class wealth has generated "great expectations" regarding government responsibilities for the protection of this wealth. They show that crisis policy interventions have become more extensive and costly - and their political aftermaths far more fraught - because of democratic governance, not in spite of it. Using data from a large number of democracies over two centuries, and detailed longitudinal studies of Brazil, the United Kingdom and the United States, the book breaks new ground in exploring the consequences of the emergence of mass political demand for financial stabilization. The talk sparked questions and debate |
| Year(s) Of Engagement Activity | 2019 |
| URL | http://www.systemicrisk.ac.uk/events/wealth-effect-how-great-expectations-middle-class-have-changed-... |
| Description | Valenzuela - IFABS 2018 Chile Conference Financial Decisions in a Changing Global Environment |
| Form Of Engagement Activity | Participation in an activity, workshop or similar |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Study participants or study members |
| Results and Impact | The International Finance and Banking Society (IFABS) Conferences aim to provide a forum for discussion and critical analysis of the major financial and banking challenges and networking amongst academics, policy-makers, research students and practitioners. Founded in 2008 in the United Kingdom, IFABS, with over 3,500 members from over 60 countries, is one of the world's leading organizations dedicated to the promotion of research in banking and finance. The Society is recognised for the top quality research meetings and conferences it organises throughout the world. Marcela Valenzuela was a member of the organising committee. |
| Year(s) Of Engagement Activity | 2018 |
| URL | http://www.ifabs.org/conference/view/11 |
| Description | Valenzuela - Santiago Finance Workshop 2018 |
| Form Of Engagement Activity | Participation in an activity, workshop or similar |
| Part Of Official Scheme? | No |
| Geographic Reach | Regional |
| Primary Audience | Policymakers/politicians |
| Results and Impact | The Santiago Finance Workshop brought ogether academics, regulators and practitioners from all over the world in order to discuss new empirical and theoretical research that deals with finance, to highlight some of the associated challenges for regulators, but also to assess how regulatory changes may induce in turn some financial innovations in the market. Keynote speakers were -Prof. Toni M. Whited (University of Michigan - Ross School of Business), co-editor of the Journal of Financial Economics. -Prof. Stefan Nagel (University of Chicago - Booth School of Business), executive editor of the Journal of Finance. Marcela Valenzuela was a member of the organising committee. |
| Year(s) Of Engagement Activity | 2018 |
| Description | Workshop - 1st LSE Workshop on Political Economy of Turkey |
| Form Of Engagement Activity | Participation in an activity, workshop or similar |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Study participants or study members |
| Results and Impact | The 1st LSE Workshop on Political Economy of Turkey was co-organised by SRC and European Institute on 12th March 2019. Speakers: Günes Asik (TOBB University of Economics and Technology), Ceren Baysan (Harvard University), Selcen Cakir (Bogaziçi University), Gozde Corekcioglu (Kadir Has University), Emine Deniz (Özyegin University), Selin Köksal (Bocconi University), Tolga Sinmazdemir (LSE) Organisers: Cevat Giray Aksoy (EBRD, LSE & IZA), Davide Luca (University of Cambridge, LSE & GSSI) and Orkun Saka (LSE & SRC) The workshop sparked discussions and thoughts on relevant topics. |
| Year(s) Of Engagement Activity | 2019 |
| URL | http://www.systemicrisk.ac.uk/events/1st-lse-workshop-political-economy-turkey |
| Description | Workshop: European Capital Markets and Brexit: the Road(s) Ahead |
| Form Of Engagement Activity | Participation in an activity, workshop or similar |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Policymakers/politicians |
| Results and Impact | A workshop on European Capital Markets and Brexit: the Road(s) Ahead co-organised by SRC in Sept 2018 Keynote speaker: Mario Nava (Chairman, CONSOB) Panel: Franco Bruni (Bocconi University), Jon Danielsson (SRC, LSE), Marco Ventoruzzo (Bocconi University), Jean-Pierre Zigrand (SRC, LSE) Chair: Donato Masciandaro (Bocconi University) Organisers: Jon Danielsson (SRC, LSE), Donato Masciandaro (Bocconi University) The workshop sparked discussion on topics related to CMU and brought together researchers and policymakers. |
| Year(s) Of Engagement Activity | 2018 |
| URL | http://www.systemicrisk.ac.uk/events/european-capital-markets-and-brexit-roads-ahead |
| Description | Zorka Simon (Goethe University Frankfurt and Research Centre SAFE) |
| Form Of Engagement Activity | A talk or presentation |
| Part Of Official Scheme? | No |
| Geographic Reach | Local |
| Primary Audience | Study participants or study members |
| Results and Impact | Seminar on 14th February 2020. Seminar Title: Collateral Eligibility of Corporate Debt in the Eurosystem Abstract: Under the unique institutional framework of the Eurosystem, we study how central bank collateral eligibility of corporate bonds induces externalities that help the ECB to fulfill its policy mandate. Using the eligible asset list of the Eurosystem Collateral Framework, we identify the first inclusion date of both individual bonds and issuer firms. Following this event, we find that, due to the increased supply of and demand for pledgeable collateral, (i) trading activity in the secondary market for collateral, the securities lending market, increases, (ii) eligible bonds trade at lower yields due to the liquidity service of pledgeability, and (iii) newly-issued bonds' liquidity declines, whereas the liquidity of older bonds does not change, or even improves. Our evidence suggests that the existence of corporate bond lending relaxes the constraint of limited collateral supply, thereby making an otherwise fragmented market more cohesive and complete. Moreover, we observe that, following bond-issuing firms' first-time eligibility list inclusion, they reduce bank debt and expand corporate bond issuance activity, thus increasing the overall size and their maturity of total debt. The seminar sparked questions and discussions. |
| Year(s) Of Engagement Activity | 2020 |
| URL | http://www.systemicrisk.ac.uk/seminars/zorka-simon |