Financial Stability - The future of global finance
Eight years on from the financial crisis and market conditions remain challenging. The global economy is shaky at best; ongoing reforms have fundamentally changed banks’ capital, liquidity, and resolvability -- in many ways for the better -- but specific issues and the interaction of regulations continue to generate uncertainty; higher capital requirements are limiting lending; banks’ ability to support liquid markets is limited by structural reforms (Volker, Vickers, Liikanen) as well as more stringent capital and liquidity requirements; zero per cent and even negative interest rates are challenging returns; stringent interpretations of often-vague financial crime compliance obligations are constraining correspondent banking and some payments businesses, especially in the weakest countries; supervisors require huge investments in the banks’ IT infrastructure; and, as if that were not enough, technological rivals are keenly contesting banks’ traditional activities. This climate shows no sign of changing, so what can banks do to help steer the economy in a more positive direction? Can and should non-banks step in, and what does that mean for the traditional banking sector? How can regulators maintain a level playing field without stifling innovation? How will banks face up to the challenge from non-traditional competitors, reap advantage from advances in technology and address the growing challenge of financial inclusion? To what extent can technology mitigate some of the regulatory challenges banks (especially) face? Join our panel of experts as they debate how the banks should react to these challenges, and what banks can do to bolster the world’s economy and ensure a stable and resilient financial system?