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 Financial stability risks in Europe in the post-pandemic and Russia-Ukraine conflict context: indebtedness, inflation, asset bubbles,…  

Day 3 Morning

Friday 09 September

Room :

CONGRESS HALL 2

Speakers

Chair
Madis Müller
Governor - National Bank of Estonia (Eesti Pank)
Public Authorities
Mark Branson
President - Federal Financial Supervisory Authority, Germany (BaFin)
Gerry Cross
Director Financial Regulation – Policy and Risk - Central Bank of Ireland
Alfred Kammer
Director, European Department - International Monetary Fund (IMF)
Boštjan Vasle
Governor and Member of the Governing Council of the ECB - Bank of Slovenia
Industry Representatives
Sylvain Broyer
Chief Economist EMEA, Fixed Income Analytics - S&P Global Ratings Europe Ltd.
Geert Wijnhoven
Group Treasurer - ING Group

Objectives of the session

This session will assess the financial vulnerabilities raised in Europe by the dangers of rising and persistent inflation, lasting very negative real interest rates – asset bubbles, market fragmentation, liquidity trap -, the very high level of public debt in some EU Member States, the deterioration of credit risk and persistently expansionary fiscal policies.

Then, the session will discuss the main priorities of monetary, fiscal policies to address these risks in the increasingly uncertain environment.

The session will not cover the risks related to EU non-bank financial intermediation, cyber resilience, and climate change as these will be addressed on other sessions of the Eurofi Prague Forum are focusing on these issues.

Points of discussion

  1. What are the key financial stability risks and the main vulnerabilities in the financial sector at the EU level in the current context of very high inflation, historically negative real interest rates, still accommodative fiscal policies, and deteriorating credit risk (e.g. the level of indebtedness in the public and non-financial private sectors, the widening gap in sovereign bond financing conditions, the swelling of asset bubbles, the further increasing of the sovereign – bank feedback loop, the increasing leverage in credit and financial markets, the ever more complex credit products containing market risk attributes increasing opacity in the markets…)?
  2. What should be the priorities regarding the evolution of monetary, fiscal and prudential policies in Europe to appropriately address these risks and to deal with the increasingly uncertain environment?