2022 Financial Stability Conference: Financial Stability: Frontier Risks, a New Normal, and Policy Challenges

Conference dates

17 Nov 2022 - 18 Nov 2022

Location

Cleveland, Ohio

Description

Call For Papers
2022 Financial Stability Conference: Financial Stability: Frontier Risks, a New Normal, and Policy Challenges

November 17–18, 2022, Cleveland, Ohio

Organized by the Federal Reserve Bank of Cleveland and the Office of Financial Research

The Federal Reserve Bank of Cleveland and the Office of Financial Research invite the submission of research and policy-oriented papers for the 2022 Financial Stability Conference to be held in Cleveland, Ohio, and virtually in a hybrid format on November 17–18, 2022.

Rapidly evolving threats pose new financial stability challenges for practitioners, regulators, and policymakers alike. Beyond the new normal coming from changes in fiscal, monetary, and regulatory policies, markets and institutions are confronted by frontier risks borne by innovations in technology, changes in the physical environment, and global interlinkages. The growth of digital asset markets also highlights new and old challenges for financial regulators, while cybersecurity disruptions introduce a growing set of vulnerabilities to the increasingly automated and interconnected financial system. The financial stability consequences of climate risks and associated policy responses are still not well understood, though they have drawn increasing attention. And, finally, deeper real and financial links between a world being recognized as more diverse brings new risks to the forefront of policy challenges. The tenth annual Financial Stability Conference organized by the Federal Reserve Bank of Cleveland and the Office of Financial Research will explore these issues.

Keynote Speakers will be Tobias Adrian, Financial Counselor and Director of the Monetary and Capital Markets Department of the International Monetary Fund (IMF) and Gary Gorton, Frederick Frank Class of 1954 Professor of Management and Finance, Yale School of Management.

CONFERENCE FORMAT: To develop these themes, the conference will bring together a mix of policymakers, market participants, and researchers in two types of sessions:

Policy Discussions
These sessions include keynote addresses and panel discussions in which participants from industry, regulatory agencies, and academia share their insights.

Research Forums
These forums follow the format of an academic workshop and include sessions to discuss submitted papers.

TOPICS: We welcome submissions of research on topics related to potential financial stability risks faced by financial markets and institutions, sources of financial system resilience, and related public policy. Conference topics include but are not limited to the following:

Macroprudential and Monetary Policy
As monetary policy transitions from supporting markets to fighting inflation, it is crucial to understand the place of macroprudential and stability policy within that framework. What risks will arise with the shift in policy, what data will make these risks apparent, and what tools will be needed to preserve stability? Are there implications for the governance of both the private and public sectors? Irrespective of the policy environment, what frontier risks are emerging with the constant changes in technology and organizations?
- Interactions between macroprudential and monetary policy
- Inflation, macroprudential supervision, and financial stability
- Risks from rising interest rates and quantitative tightening
- Macroprudential impacts on diverse populations
- International regulatory competition and cooperation
- Financial stability councils and central banks: policy coordination with divided responsibility
- Policy uses of big data, text data, and new data
- Regtech and regulatory sandboxes
- Use and misuse of algorithms

Financial Institutions
Frontier risks represent new challenges for financial institutions. Sizing exposures to evolving risks and managing them in the face of an uncertain regulatory environment may affect the behavior of institutions and create vulnerabilities. These risks may also have interactions with existing transmission channels that affect financial stability. Under what conditions can frontier risks become systemic risks? How are institutions adapting to these risks and associated regulatory changes? How prepared are regulators and policymakers? Are existing microprudential and macroprudential toolkits sufficient?
- Risk measurement
- Effects of capital and liquidity regulation
- Transition risks arising from climate change
- Tail risks and uncertainty
- Risk management and implicit models of risk
- Resilience to supply chain, operational, and cyber disruptions
- Valuation and liquidity risks for illiquid assets
- Cybersecurity
- Resilience to financial exclusion and disintermediation

Financial Markets
Frontier risks emerge in new and evolving financial markets as institutions, technologies, and settlement practices work to keep pace with investor demands. While investors may overlook many of these risks in forming portfolios initially, as these vulnerability channels materialize, they can create strains on the evaluation of assets. The transitions that follow, typically associated with broad reallocations, form financial stability threats through which volatility spikes, fire sales, and financial contagion appear. To what extent do investors recognize these risks, and how does recognition affect their allocations? How does opacity resulting from deficiencies in reporting, risk management, and operation standards for these risks affect investor behavior?
- Tail risks and uncertainty
- Contagion, networks, and interconnectedness
- Financial links between real and financial sectors
- Payment system stress and innovations
- Distributed digital ledgers
- High-frequency trading
- CCPs, clearinghouses, and derivatives markets
- Short-term funding, securities financing, and collateralization

SCIENTIFIC COMMITTEE:
Jennie Bai, Georgetown University
Christa Bouwman, Texas A&M University
Kinda Hachem, University of Virginia Darden School of Business
Kathleen Hanley, Leigh University
Luc Laeven, Tilburg University
Elena Loutskina, University of Virginia Darden School of Business
Andreea Minca, Cornell University
Alan Taylor, University of California, Davis

PAPER SUBMISSION PROCEDURE: The deadline for submissions is Tuesday, July 5, 2022. Please submit completed papers through Conference Maker (https://editorialexpress.com/cgi-bin/conference/conference.cgi?action=login&db_name=finstab22). Notification of acceptance will be provided by Thursday, September 8, 2022. Final conference papers are due on Tuesday, November 1, 2022. In-person paper presentations are preferred; presenters will need to follow any relevant COVID-19 protocols for entry in place at the time of the conference. Questions about the call for papers or the conference should be directed to financial.stability.conference@clev.frb.org