Financial resilience and bank size – are we forgetting what is most important?
Abstract: Regulatory reform in the post global financial crisis has been extensive, going deep into many micro-prudential (capital, liquidity…) and macroprudential (systemic risk buffers…) aspects. Lot of intellectual energy and negotiating power have gone into delivering today’s extensive post-crisis legislations originating from Basel. Can we say our financial system is truly more crisis-resilient? This lecture considers the key regulatory changes and argues that some potentially critical elements of regulatory reform maybe missing, and that these “elephants in the room” not simply pose systemic risks to but ultimately also provide ammunition to anti-elite populism.
Piroska Nagy-Mohacsi is a macroeconomist and Programme Director of the Institute of Global Affairs at the London School of Economics and Political Science (LSE), where she is responsible for various global policy initiatives on financial resilience, growth and migration. She was Policy Director of the European Bank for Reconstruction and Development (EBRD), overseeing strategic directions in Emerging Europe, Central Asia and North Africa as well as major policy initiatives. She was also responsible for the EBRD’s economic forecast and co-created and co-led the Vienna Initiative in 2008-15, a public-private crisis management and coordination platform in emerging Europe, and headed its Secretariat. Piroska worked in senior positions as economist for the International Monetary Fund (IMF) between 1986 and 2008 with surveillance, policy advice and program responsibilities in Europe, Africa and Asia. While on leave from the IMF, she was guest lecturer at the Hebrew University of Jerusalem in 1996/97 and Senior Adviser at Fitch Ratings in 2003/4. She has published extensively in the areas of financial stability, fiscal policy reform and structural transformation, and the rise of economic populism. She is the author of the book The Meltdown of the Russian State (Edgar Elgar, 2000).