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Addressing the sovereign / financial sector / Central Bank loop

Day 1 Afternoon

Wednesday 11 September

Room :

Fennia I - Roundtable

Speakers

Chair
Andreas Dombret - Senior Fellow, Columbia University
Public Authorities
Klaus Kumpfmüller - Executive Director, Austrian FMA
Akira Otani - Deputy Director-General, Bank of Japan
Industry Representatives
Bernard de Longevialle - Head of EMEA Financial Services, S&P Global Ratings
Dino Kos - Chief Regulatory Officer, CLS Bank International

Objectives of the session

The financial health of banks and sovereigns is intertwined in a sovereign-bank nexus that may multiply and accelerate vulnerabilities in each sector and lead to adverse feedback loops. Moreover, domestic sovereign risk significantly increases insurer risk. The sovereign doom loop also affects central banks with large holdings of government bonds purchased as part of QE programs.

The objective of this session is to discuss the main evolutions in the sovereign-financial sector-central banks loop in the EU and in Japan. Speakers will then be invited to express their views on the essential features of the required solutions (fiscal discipline, strengthening of the financial sector, prudential regulatory measures) for addressing the main challenges and risks related to this loop

Points of discussion

What are the main evolutions in the sovereign-bank/insurance/central banks loop in the EU and in Japan? What are the impacts on the financial sectors and economies?

How to address the main challenges and risks linked to this sovereign financial sector/central banks?