Call For Papers
Banks and the Public Finances
European Banking Center 4th Conference on Financial Stability
In cooperation with the CEPR, Sponsored by SNL Financial Ltd.
Tilburg, Netherlands, 4-5 October, 2012
Keynote Speaker: Prof Viral V. Acharya, New York University - Stern School of Business, CEPR
The ongoing financial crisis is showing that the fates of a country's banking sector and of its public finances are too much intertwined. Banking crises in Iceland, Ireland and other countries have wrecked the public finances of these countries. Currently, the European sovereign debt crisis is proving to be a major threat to the stability of Europe's banking system.
The relationship between the banking sector and the public finances is a complex one. First, government ownership of banks is prevalent, and rising on account of the crisis. Second, the behavior of private banks may be influenced by politics, for instance if politicians sit on the boards of banks. Third, the financial safety net is backstopped by national treasuries so that a banking crisis entails potentially huge fiscal costs. Fourth, banks are subject to taxation, and potentially constitute a major source of tax revenues. Fifth, government debt is a key asset category of banks, so that a government debt crisis can cause widespread bank distress.
Going forward, a key question is how the relation between the banking sector and the public finances can be reconfigured to bring back financial stability, including government finance stability.
TOPICS: We are inviting high quality submissions of theoretical and empirical nature. This conference aims to bring together contributions on topics including the following:
- The impact of government ownership of banks on efficiency, credit and financial stability
- Politics and banking
- Subsidies implicit in the financial safety net, and how to eliminate them?
- How to cope with the too-big-to-fail and too-complex-to-fail phenomena?
- The fiscal costs of banking crises. How can bank regulation and resolution strategies reduce these costs?
- How to backstop an international bank? Is there need for institutional reform?
- Taxation of the financial sector. What are actual tax burdens on banks, how does taxation affect bank behavior, how to appropriately tax the financial sector, and what is the interplay between taxation and regulation?
- The sovereign debt crisis and the banking sector. The role of new institutions such as the EFSF.
- Does the Basle III framework adequately address bank holdings of sovereign debt?
PAPER SUBMISSION PROCEDURE: The deadline for submissions is May 15, 2012. Papers should be submitted electronically to: firstname.lastname@example.org along with your affiliation and email address. In the email, please indicate whether or not you are willing to act as a discussant. Acceptance decisions will be made by July 15, 2012. Economy class travel and accommodation for invited participants will be covered.
FURTHER INFORMATION: The conference will be held at Tilburg University. Tentatively, the program will start on Thursday at 9:00 and will end on Friday at 14:00. The program will include 8-10 papers with their discussions, leaving ample time for comments from the audience. Presenters and discussants are kindly invited to attend for the whole duration of the conference. More details about the conference and the venue can be found at: http://www.tilburguniversity.nl/ebc/events
- Olivier De Jonghe (EBC, Tilburg University)
- Harry Huizinga (EBC, Tilburg University)
- Charles Calomiris (Columbia Business School)
- Stijn Claessens (IMF, CEPR and University of Amsterdam)
- Reint Gropp (European Business School)
- Florencio Lopez de Silanes (EDHEC Business School)
- Enrico Perotti (University of Amsterdam, CEPR)
- Andrea Sironi (Bocconi University)
- Philip Strahan (Boston College)
- Wolf Wagner (Tilburg University)