Conference Examines Banking Regulation, Financial Stability

SIPA hosted a research conference devoted to “Optimal Bank Capital Regulation” on February 23, co-sponsoring the event with The Clearing House Association, a trade group that represents the United States' largest commercial banks.

Over the course of a full-day program, the conference focused on the relationship between regulation and financial stability. In keynote remarks, Executive Vice President Kevin Stiroh of the Federal Reserve Bank of New York stressed the importance of financial oversight and regulation to the long-term stability of the financial system. Stiroh observed that the imposition of capital requirements can sometimes lead to short-term tradeoffs between efficiency and resilience, but also suggested that effective regulation often increases both of these in a mutually reinforcing way.

Panel discussions at the conference covered the benefits and costs of capital regulation as well as the impact of regulation on banks’ internal capital allocation. Papers were also presented on a variety of topics, including capital requirements and financial stability, unintended consequences, and models of optimal bank liability structure.

Among the speakers were representatives from central banks, universities, research institutions, global banks, and the International Money Fund.

— Matt Terry MIA ’17

Pictured: Kevin Stiroh of the Federal Reserve Bank of New York // photo by Barbara Alper