Event dates: 22 - 23 February 2016
Martin Taylor, member of the Financial Policy Committee, provided the opening overview of current financial stability issues in the UK at the Workshop. In addition to senior Bank of England staff, eight overseas participants provided valuable international perspectives.
The first day of the Workshop covered (i) cyber and operational resilience (ii) Basel 3 capital implementation, focusing on the new countercyclical buffer and (iii) conduct issues, led by the Director of Strategy and Competition at the Financial Conduct Authority. The significance of cyber risks for financial stability has increased markedly over the past year. The design of the countercyclical buffer allows countries considerable flexibility in implementation, including no upper bound in the UK.
The second day focused on (i) emerging market economies and global financial stability (ii) new approaches to stress testing and (iii) implementation of the Financial Stability Board's Total Loss Absorbing Capital requirements. The potential for a tail event from the global economy to threaten financial stability has increased further. Alongside heightened geopolitical concerns, the weaker global growth and inflation environment poses particular risks. International stress testing arrangements, such as across the EU, have enabled relevant authorities to continue to explore country-specific risks, using their own new scenarios and methodologies. In line with those arrangements, new approaches to stress testing in the UK, Switzerland and Germany were outlined.
Day 1: Monday 22 February
09:30-10:15 Current financial stability issues facing the Financial Policy Committee (FPC)
Mr Martin Taylor, Non-Executive Director, FPC, Bank of England
10:15-11:00 Cyber and operational resilience
Mr Andrew Lodge, Head of Resolution Division, Bank of England
11.15-12.00 Participants respond
12.00-12.45 Basel 3 capital implementation, focusing on the new countercyclical buffer
Dr David Aikman, Technical Head of Department, Macroprudential strategy and support, Bank of England
13.45-14.05 Countercyclical capital buffer: when?
Mr Piotr Banbula, Head of Macroprudential Policy Division, Financial Stability Department, National Bank of Poland
14.05-14.30 Indicators for shock-resilience and pro-cyclicality at the Central Bank of Hungary
Mr Gergely Fábián, Director, Financial System Analysis Directorate, Central Bank of Hungary
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14.30-15.30 Conduct issues affecting financial stability
Mr Christopher Woolard, Director of strategy and competition, Financial Conduct Authority
16.00-17.30 Participants respond and discussion
Day 2: Tuesday 23 February
09.30-10.15 Emerging market economy issues
Mr Fergall Shortall, Head of International Surveillance Division, Bank of England
10:15-10:30 Current risks from emerging market economies: the South African case
Dr Hendrik Nel, Head, Financial Stability, South African Reserve Bank
10:30-11:00 Participants respond
11:15-11:50 Bank of England's new approach to stress testing
Mr Amar Radia, Manager, Stress Testing Strategy Division, Bank of England
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11:50-12:10 Swiss National Bank's new approaches to stress testing
Mr Robert Bischel, Director, Deputy Head of Financial Stability, Swiss National Bank
12:10-12:30 Stress testing: a novel approach to model contagion in the interbank market
Mr Ulrich Kruger, Head of Section, Macroprudential Surveillance of Structural Risks in the Banking System, Deutsche Bundesbank
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12:30-12:45 Participants respond
13:45-14:30 Implementation of the Financial Stability Boards total loss absorbing capital requirements in the UK, through minimum requirement of eligible liabilities
Mr Peter Brierley, Senior Technical Advisor, Resolution Division, Bank of England
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14:30-14:50 Liquidity in the mortgage bond market
Mr Peter E. Stoorgard, Head of Financial Institutions, Financial Stability, National Bank of Denmark
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14:50-15:10 Network Analysis
Dr Sankaran Nair Rajagopal, Chief General Manager, Reserve Bank of India
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15:10-15.10 Participants respond
16:00-16:30 Financial stability through macroprudential policy: key challenges
Mr Gino Cateau, Assistant Chief, Financial stability, Bank of Canada
16:30-16:50 Policy interaction: unwinding the countercyclical buffer
Mr Hakkon Solheim, Deputy Director, Macroprudential Policy, Central Bank of Norway
16:50-17:30 Final general discussion