Financial Stability—Central Banking and Supervisory Challenges

Conference Organized by the IMF Institute and the Monetary and Financial Systems Department
Washington, D.C., September 6-7, 2005

The conference addressed key financial stability issues posing challenges to central bankers and supervisors around the world. The conference is divided in three sessions. The first and second sessions examined the risks stemming from rapid credit growth and asset price bubbles in financial and housing markets and possible monetary and prudential policy responses for addressing them. The third session discussed the institutional aspects of implementing the financial stability mandate and issues concerning supervisory gaps and preconditions. Conference participants included high-level central bank and supervisory officials from some forty member countries of the IMF.

Attendance at the conference was by invitation only. For further information please contact INS-TRAIN.

The section of the website relating to this Financial Stability — Central Banking and Supervisory Challenges conference contains papers and web links considered at the conference. The views expressed in these papers are those of the authors only, and the presence of them, or of links to them, on the IMF website does not imply that the IMF, its Executive Board, or its management endorses or shares the views expressed in the papers. This is obviously true, in particular, of papers written by authors who have no affiliation with the Fund.


Tuesday, September 6
8:30–9:00 am Registration
9:00–9:30 am Conference Opening
  Welcoming RemarksStefan Ingves, Director, Monetary and Financial Systems Department, IMF

Keynote SpeechRoger W. Ferguson Jr., Vice Chairman of the Board of Governors of the Federal Reserve System and Chairman, Financial Stability Forum
9:30–11:00 am Session I. Rapid Credit Growth and Risks to Financial Stability: Monetary and Prudential Policy Options
  Chair: Michael Deppler, Director, European Department, IMF
9:30-9:50 am
  • Charles Goodhart, Norman Sosnow Professor of Banking and Finance
    London School of Economics: Excessive Credit Growth—Causes and Consequences
9:50:10:10 am
  • Charles Enoch, Deputy Director, Monetary and Financial Systems Department, IMF: Rapid Credit Growth in Central and Eastern Europe -- Risks and Policy Responses
10:10-10:30 am
  • José M. Roldán, Director General of Banking Regulation, Banco de España: Prudential Responses to Credit Growth—the Case of Spain
10:30–11:00 am Follow-up questions and summing up by the chair
11:00–11:15 am Coffee Break
11:15 am–1:00 pm Session II. Asset Price Bubbles and Risks to Financial Stability: Monetary and Prudential Policy Options
  Chair: Gerd Häusler, Counselor and Director, International Capital Markets, IMF
11:15-11:35 am
  • Claudio Borio, Head of Research and Policy Analysis, BIS: Asset Price Bubbles—Causes, Consequences and Policy Options
11:35-11:55 pm
  • John Lipsky, Vice Chairman, JP Morgan Securities: Stock Market Risks—A Market Participant’s Perspective
11:55-12:15 pm
  • Dino Kos, Executive Vice-President of the Markets Group, Federal Reserve Bank of New York: Policy Responses to Financial Market Risks
12:15-12:35 pm
  • Lars Nyberg, Deputy Governor, Sveriges Riksbank, Sweden: Responses to Financial Risks from the Housing Market
12:35- 1:00 pm Follow-up questions and summing up by the chair
1:00–2:30 pm Lunch—Speaker: Malcolm D. Knight, General Manager of the Bank for International Settlements
2:30–5:50 pm Session III. Implementing Financial Stability Mandates—Institutional Issues
  Chair: Raghuram Rajan, Economic Counselor and Director, Research Department, IMF
2:30-3:00 pm
  • Richard Herring, Jacob Safra Professor of International Banking, The Wharton School: The Mandate for Financial Stability—Central Bankers vs. Supervisory Authorities
3:00-3:30 pm
  • Tomás Baliño, Deputy Director, Monetary and Financial Systems Department, IMF: Financial Stability Analysis in the FSAP
3:30-4:00 pm
  • Sir Callum McCarthy, Chairman, U.K. Financial Services Authority: Implementing the Financial Stability Mandate—UK
4:00–4:20 pm Coffee Break
4:20-4:50 pm
  • Alexandre Schwartsman, Deputy Governor for International Affairs, Central Bank of Brazil: Implementing the Financial Stability Mandate—Brazil
4:50-5:20 pm
  • Bandid Nijathaworn, Deputy Governor of the Bank of Thailand: Implementing the Financial Stability Mandate—Thailand
5:20–5:50 pm Follow-up questions and summing up by the chair
Wednesday, September 7
9:30 am–12:45 pm Session IV. Supervisory Gaps and Implications for Financial Stability
  Chair: Gerard Caprio, Director, Financial Sector Operations and Policy, World Bank
9:30-10:00 am
  • Stefan Ingves, Director, Monetary and Financial Systems Department, IMF: Institutional Weaknesses and Financial Stability
10:00-10:30 am
  • Jochen Sanio, President of the German Federal Financial Supervisory Authority: Cross-Sector and Cross-Border Supervisory Gaps
10:30–11:00 am Coffee Break
11:00-11:30 am
  • Guillermo Güémez García, Deputy Governor, Bank of Mexico: Supervisory Gaps and Preconditions in Emerging Markets—Lessons from Mexico
11:30-12:00 pm
  • Rasheed Mohammed Al Maraj, Governor, Bahrain Monetary Agency: Islamic Financial Institutions—Risk Management and Supervisory issues
12:00–12:30 pm Follow-up questions and summing up by the chair
12:35–12:45 pm Concluding Remarks: Agustín Carstens, Deputy Managing Director, IMF
1:00—2:00 pm Luncheon
Farewell Message: Anne Krueger, First Deputy Managing Director, IMF

List of Countries Represented
(Speakers And Participants)

Angola Korea, Republic of
Austria Malaysia
Bahrain Mexico
Bolivia Mozambique, Republic of
Botswana Nigeria
Brazil Peru
Chile Poland
China, People's Republic of Serbia and Montenegro
Germany Singapore
Hungary Slovak Republic
India Spain
Israel Sweden
Japan Thailand
Kenya Turkey
Ireland United Kingdom
Kyrgyz Republic United States