March 18, 2011
A High-Level Roundtable to discuss the theme of "Financial Crisis and Sovereign Risk: Implications for Financial Stability" will take place at the IMF's Headquarters in Washington, D.C. on Friday, March 18 2011. The event will bring together senior policymakers from the ministries of finance, central banks, and financial regulatory agencies of the G20, as well as leading representatives from multilateral organizations, the private sector, and the academia. Seating is limited to pre-registered invitees, but the program, background materials, and final proceedings of the event will be available on this site.
The main objective of the Roundtable is to better understand sovereign risk and its implications for stability in the banking sector and capital markets. The linkages with the ongoing regulatory reforms will also be assessed to support the current emphasis on better supervision. To this end, the program has been divided into three sessions, each of which explores a different dimension of sovereign risk in the context of the current financial crisis: (i) spillovers between sovereign risk and banking sector stability; (ii) sovereign risk and its outlook for issuers and debt capital markets; and (iii) sovereign risk and its impact on ongoing financial regulatory reforms. Participants will also draw out innovative regulatory initiatives and practical policy recommendations to mitigate the impact of heightened sovereign risk on financial stability.
"The forceful response at the national and supranational level to address sovereign risks and strengthen confidence in the financial system, including through the provision of detailed information on bank balance sheets, helped to stabilize funding markets and mitigate risks, but conditions remain fragile." (IMF Global Financial Stability Report, October 2010).
| Financial Crisis and Sovereign Risk—Implications for Financial Stability | |
|---|---|
| Friday, March 18, 2011 | |
| 8:00–8:45 a.m. | Registration and Breakfast |
| 8:45–9:00 a.m. | Welcome by José Viñals, Financial Counsellor and Director, Monetary and Capital Markets Department, IMF Introductory Remarks: Dominique Strauss-Kahn, Managing Director, IMF |
| 9:00–9:15 a.m. | Current Fiscal Outlook: Carlo Cottarelli, Director, Fiscal Affairs Department, IMF |
| 9:15–10:45 a.m. | Session 1: Spillovers between Sovereign Risk and the Banking Sector Stability |
| The session sets the stage by exploring the linkages between sovereign risk and the banking sector, how these have evolved during the crisis, and how policy makers should deal with these linkages. Moderator: José Viñals, Financial Counsellor and Director, Monetary and Capital Markets Department, IMF Panelists:
Open Roundtable Discussion (10:15 - 10:45a.m.) |
|
| 10:45–11:15a.m. | Coffee break |
| 11:15 a.m.–12:45 p.m. | Session 2: Sovereign Risk and Its Outlook for Issuers and Debt Capital Markets |
| This session examines how the demand and the supply side of debt capital markets should adjust to conditions of heightened sovereign risk, elevated funding needs of sovereigns and corporates, and fundamental shifts in global asset allocation strategies. Moderator: Olivier Blanchard, Economic Counselor and Director, Research Department, IMF Panelists:
Open Roundtable Discussion (12:15 – 12:45 p.m.) |
|
| 12:45–2:15 p.m. | Sovereign Risk, Sustainability and Buybacks Lunch for Roundtable delegates (by invitation only) Special Speaker: Kenneth Rogoff, Thomas D. Cabot Professor of Public Policy, Harvard University |
| 2:15–3:15 p.m. | Session 3: Sovereign Risk and Its Impact on Ongoing Financial Regulatory Reforms |
| This session considers the implications of sovereign risk for the ongoing financial
regulatory reforms, and the likely effects of planned reforms on sovereign risk and its management. Moderator: Reza Moghadam, Director, Strategy, Policy, and Review Department, IMF. Panelists:
Open Roundtable Discussion (3:15 – 3:45 p.m.) |
|
| 3:45–4:00 p.m. | Key Roundtable Conclusions |
The following papers may prove useful background reading for the conference.
Allen, M., C. Rosenberg, C. Keller, B. Sester and N. Roubini (2002). “A Balance Sheet Approach to Financial Crisis,” IMF Working Paper, WP/02/210.
http://www.imf.org/external/pubs/ft/wp/2002/wp02210.pdf
Avdjiev, Stefan, Christian Upper, and Nicholas Vause (2011). “Highlights of the BIS International Statistics,” BIS Quarterly Review, March.
http://www.bis.org/publ/qtrpdf/r_qt1103.htm
Blanchard, Olivier, Giovanni Dell’Ariccia, and Paolo Mauro (2010). “Rethinking Macroeconomic Policy,” IMF Staff Position Note, SPN/10/03.
http://www.imf.org/external/pubs/ft/spn/2010/spn1003.pdf
Caceres, C., V. Guzzo and M. Segoviano (2010). “Sovereign Spreads: Global Risk Aversion, Contagion, or Fundamentals?,” IMF Working Paper, WP/10/120
http://www.imf.org/external/pubs/ft/wp/2010/wp10120.pdf
Elga Bartsch, D. Antonucci, A. Mares, and J. Fels (2011). “Sovereign Debt Crisis - A Roadmap for Investors,” Morgan Stanley Research Europe.
http://www.morganstanley.com/views/gef/archive/2011/20110209-Wed.html
Das, U., M. Papapioannou, G. Pedras, F. Ahmed, and J. Surti (2010). “Managing Public Debt and Its Financial Stability Implications,” IMF Working Paper, WP/10/280.
http://www.imf.org/external/pubs/ft/wp/2010/wp10280.pdf
De Bolle, Monica, Bjorn Rother, and Ivetta Hakobyan (2006). “The Level and Composition of Public Sector Debt in Emerging Market Crises,” IMF Working Paper, WP/06/186.
http://www.imf.org/external/pubs/ft/wp/2006/wp06186.pdf
De Broeck, Mark, and Anastasia Guscina (2011). “Government Debt Issuance in the Euro Area: The Impact of the Financial Crisis,” IMF Working Paper, WP/11/21.
http://www.imf.org/external/pubs/ft/wp/2011/wp1121.pdf
Fender, Ingo, and Patrick McGuire (2010). “European Banks’ US Dollar Funding Pressures,” BIS Quarterly Review, June. http://www.bis.org/publ/qtrpdf/r_qt1006h.pdf
Garzarelli, Francesco (2011). “EMU Sovereign Crisis: Is the End in Sight?” Goldman Sachs Global Economics, February.
International Monetary Fund (2009). “Crisis-Related Measures in the Financial System and Sovereign Balance Sheet Risks”, IMF Board Paper.
http://www.imf.org/external/np/pp/eng/2009/073109.pdf
International Monetary Fund (2010). “Fiscal Exit: From Strategy to Implementation,” Fiscal Monitor, April.
http://www.imf.org/external/pubs/ft/fm/2010/02/fmindex.htm
International Monetary Fund (2010). “Guiding Principles for Managing Sovereign Risk and High Levels of Public Debt,” Stockholm Principles, September.
http://www.imf.org/external/np/mcm/Stockholm/principles.htm
International Monetary Fund (2010). “Sovereigns, Funding, and Systemic Liquidity,” Global Financial Stability Report, October.
http://www.imf.org/external/pubs/ft/gfsr/2010/02/index.htm
McGuire, Patrick, and Peter, Götz Von (2009). “The US Dollar Shortage in Global Banking and the International Policy Response,” BIS Working Paper, No. 291.
http://www.bis.org/publ/work291.pdf
Reinhart, Carmen M., and Kenneth S. Rogoff (2009). This Time Is Different: Eight Centuries of Financial Folly. Princeton University Press.
