On Friday, 17 November 2023, 02:00 PM - 03:00 PM (CET), 01:00 - 02:00 PM (UCT), the Centre for Economic Policy Research (CEPR) Research Policy Network (RPN) on European Financial Architecture (EFA), in collaboration with the Leibniz Institute for Financial Research SAFE, organized a Webinar on
Financial Resilience after SVB: Reforming Deposit Insurance and the Lender of Last Resort
Moderator: Jan Pieter Krahnen (Leibniz Institute for Financial Research SAFE, CEPR & co-RPN Leader)
Presenter: Stephen Cecchetti (Brandeis International Business Schoo & CEPR)
Discussants: Vasso Ioannidou (Professor of Finance, Bayes Business School & Fellow, CEPR) and Hugo Bänziger (Financial market expert, who previously held C-suite positions at Deutsche Bank, Lombard Odier, and Deutsche Börse).
The regulatory reforms that followed the financial crisis of 2007-09 created a financial system that is far more resilient than the one we had 15 years ago. Yet, the events of March 2023 revealed systemic deficiencies. Addressing these requires reforms. This discussion focused on two: the need to restructure existing deposit insurance systems and the desirability of modifying the lender of last resort.
Based on the NYU Stern White Paper and CEPR Rapid Response Economics: SVB and Beyond: The Banking Stress of 2023 (edited by Viral Acharya Matthew P Richardson Kermit L. Schoenholtz Bruce Tuckman), Chapters 8: Revisiting the Design of Deposit Insurance (Stephen Cecchetti Thomas Philippon Kermit L. Schoenholtz Lawrence J. White) & Chapter 9: The FHLB Role in the SVB and Related Debacles (Stephen Cecchetti Kermit L. Schoenholtz Lawrence J. White).