Is the Financial System Fit for Purpose?

Second workshop: “FinTech, RegTech and digital currencies: Consequences for regulation and central banking

Date: January 24, 2019

Location: National Institute of Economic and Social Research, 2 Dean Trench Street, London

Organisers: Ekaterina Svetlova and Alistair Milne

Brief description: The latest wave of innovation in financial technology has raised concerns that financial stability might be jeopardized by induced pro-cyclical dynamics, synchronized flows on Fintech lending platforms and systemic importance of some Fintech entities. At the same time, it is argued that decentralization and diversification of financial activities could rather promote macroeconomic and financial stability. How to evaluate these positions? The workshop will particularly take account of Fintech and credit, P2P lending, the potential for intermediation shifting out of the banking system and its interest in market making for credit as well as digital currency. The consequences for regulation, central banking and financial architecture will be discussed.

A summary blog by the Finance Hub leader, Ekaterina Svetlova, discussing some of the research ideas from the meeting can be found below.


Presentations

Session 1: Financial innovations, financial stability and regulation

Dan Awrey (University of Oxford) “Mapping the Shadow Payment System”

Discussant: Rosa Lastra (Queen Mary University of London) comments on first session

Session 2: Using Fintech to develop a safer and more transparent financial architecture

Alistair Milne (University of Loughborough) “Employing Fintech and Regtech as tools for financial stability

Fabio Caccioli (UCL) “Fintech and Regtech as tools for financial stability”

Emmanuel Schizas (Cambridge Centre for Alternative Finance) “Regtech for financial stability”

Session 3: Digital currencies and their consequences for central banking

Michael Kumhof (Bank of England) “Central Bank digital currencies”

Ole Bjerg (Copenhagen Business School) “The Problem of Parity in CBDC implementation”


Agenda

9.00 – 9.30 Introduction: Introduction and initial brainstorming

9.30 – 11.00 Session 1: Financial innovations, financial stability and regulation (Are new FinTech business models stable and sustainable? Could FinTech undermine supposedly safe incumbents, e.g. ring-fenced banks? This concern has been aired by the Financial Stability Board and other regulators.)

Speaker: Dan Awrey (University of Oxford), “Mapping the Shadow Payment System”

Discussant (law): Rosa Lastra, Queen Mary University of London

Discussant (economic geography): Andrew Leyshon, University of Nottingham

11.00 – 11.30 Coffee break

11.30 – 13.00 Session 2: Using Fintech to develop a safer and more transparent financial architecture (What is the potential for ‘RegTech’ to support efficient automated regulatory compliance? Can these technologies allow near real time monitoring of financial vulnerabilities? What are the supporting requirements in terms of data and standardisation of financial record keeping? Is a shift to ‘granular data recording’ necessary? Is it sufficient? In what respects and how can these developments support prompt resolution of distressed firms and credible living wills? Are there other possibilities for using FinTech to create a safer financial architecture?)

Speaker: Alistair Milne (University of Loughborough), “Employing Fintech and Regtech as tools for financial stability

Discussant (computer science): Fabio Caccioli, UCL

Discussant (regulation/RegTech): Emmanuel Schizas, Cambridge Centre for Alternative Finance

13.00 – 14.00 Lunch break

14.00 – 15.30 Session 3: Digital currencies and their consequences for central banking (How this new form of money should co-exist and interact with existing forms of money? How have central banks reacted so far? How does our understanding of what money is changes?)

Speaker: Michael Kumhof (Bank of England), “Central Bank digital currencies”

Speaker: Ole Bjerg (Copenhagen Business School), “The Problem of Parity in CBDC implementation”

Discussant (anthropology/CoinDesk): Annaliese Milano, London School of Economics

15.30 – 16.30   Coffee break

16.30 – 17.30   Summary / Brainstorming on the promising research perspective

 


live updates on funding opportunities, you can follow us on Twitter.

Visit our finance hub today

09 August 2018

TwitterFacebookLinkedIn