video & audio recordings
In this event Guntram Wolff and Maria Demertzis were in conversation with Gabriel Makhlouf, the governor of the Central Bank of Ireland.
They focused on the implications of the changing nature of the financial system, with a particular focus on the growth in market-based finance. The financial dislocations observed at the onset of the COVID-19 shock have raised important questions around the extent to which the collective behaviour of parts of the market-based finance sector contributed to the magnitude of these stresses – and, by implication, the magnitude of the policy response that was required by authorities to mitigate the effects on the economy.
Beyond the immediate crisis response to COVID-19, it is vital that policymakers consider the resilience of non-bank financial intermediation from a macroprudential perspective, with a focus on developing and operationalising the macroprudential policy framework for market-based finance.