Capital requirements and loss absorbing capacity for large banks

This roundtable on capital requirements and loss absorbing instruments for large banks will analyse how regulatory measures affect strategic decisions, in terms of asset allocation, portfolio investment decisions, lending to the real economy, and in terms of reshaping the organisational structure of banking groups. Ultimately, the roundtable will investigate how capital requirements affect the relationship between financial stability and the expansion of the real economy.

On this occasion the first issue of European Economy – Banks, Regulation, and the Real Sector will be presented. This new journal and internet platform aims to encourage debate among academics, institutional representatives and bankers on the current regulatory framework and its effects on banking activity and the real economy.

Programme

16:30 - 16:40: Opening:

• Guntram Wolff, director, Bruegel
• Giuseppe Scognamiglio, executive vice president, UniCredit

16:40 - 17:00: Introduction:

• Giorgio Barba Navaretti, professor of economics, University of Milan, and chief-editor of European Economy - Bank, Regulation and the Real Sector

17:00 - 17:20: To bail-in or not to bail-in?

Lead intervention:

• Jan Pieter Krahnen, professor of finance, Goethe University’s House of Finance

17:20 - 18:20: Round Table Discussion

Chair: Nicolas Véron, senior fellow, Bruegel

Speakers:

• Andrew Gracie, executive director for resolution, Bank of England
• Mario Nava, director, European Commission
• Santiago Fernandez de Lis, chief economist, BBVA
• Waleed El-Amir, head of group strategic funding and portfolio, UniCredit

18:20 - 19:00: Open Discussion

Event Materials

• Bruegel event notes

Background materials

• Silvia Merler and Nicolas Véron's Memo to the Commissioner for Financial Services, 2014
• André Sapir and Guntram B. Wolff's Policy Brief of reforms to euro area governance, 2015