Non-bank financial intermediation comprises almost half of the global financial sector. Since the crisis, UK private non-financial corporations have also substituted funding from banks for tradable securities. Alongside these changes, the share of electronic trading in financial markets has increased substantially over the last decades.
Therefore, the resilience of the non-bank financial sector and the evolving market infrastructure is crucial for the financial system to play its crucial role of providing funding to the real economy. Their resilience will also ensure that the financial system overall absorbs, rather than amplifies, stresses.
In order to assess the financial stability implications of these recent developments, it is important for academics and policy makers to improve their understanding of risks arising from the behaviour of non-bank financial institutions and the evolution of the supporting market infrastructure, and how to deal with those risks.
The Bank of England in partnership with the CEPR, the Brevan-Howard Centre at Imperial College and the Paul Woolley Centre at the London School of Economics are keen to attract papers that enhance the understanding of the following themes:
Theme 1 - Non-bank financial institutions, how they affect financial markets including implications for financial stability
- Contracts, incentives and portfolio choices of non-banks
- Effects of non-banks on asset markets in equilibrium
- Effects of non-banks on the real economy
- Policy interventions and macro-prudential tools for non-banks
Theme 2 - Developments in financial market infrastructure and their implications for financial stabilityDevelopments in financial market infrastructure and their implications for financial stability
- Trading activity and liquidity in dealer-intermediated markets
- Costs and benefits of high-frequency trading
- Systemic risk in derivative markets
- Dark pool markets
If you would like to submit a paper, please upload a draft on https://portal.cepr.org/boe-bch-cepr-pwc-conference-non-bank-financial-institutions-and-financial-stability by Sunday 1 July 2018. Authors of accepted papers will be notified by Wednesday 15 August 2018. Please indicate if you are able to act as a discussant. You will also be asked to specify your funding requirements.
If you do not currently have a CEPR profile, please create a new profile here https://portal.cepr.org/user/register and then click on the registration link above. If you have any difficulties registering for this meeting, please contact Mandy Chan, Events Officer at [email protected] or +44 20 7183 8804.
Scientific Committee: Franklin Allen, Jumana Saleheen, Dimitri Vayanos, Kathy Yuan, Sinem Hacioglu, Laura Silvestri, Jagdish Tripathy
