The FSB invites academic paper submissions for a session on the topic of ‘Evaluating the Effects of Too-Big-To-Fail Reforms’ at the 2020 Annual Meeting of CEBRA. The conference is jointly organised with the Centre For Macroeconomics at The London School of Economics and Political Science (LSE) and the Bank of England, and in association with the Leibniz Institute for Financial Research (SAFE). It will take place in London on 1-3 September 2020.

The FSB is conducting post-implementation evaluations of the effects of G20 financial regulatory reforms based on its evaluation framework. The framework guides analyses of whether the reforms are achieving their intended outcomes, and helps identify any material unintended consequences that may have to be addressed, without compromising on the objectives of the reforms.

The FSB is currently evaluating the effects of too-big-to-fail (TBTF) reforms for systemically important banks (SIBs). These reforms, agreed by the G20 in the aftermath of the global financial crisis, comprise higher loss-absorbency requirements; more intensive supervision; and policies to put in place effective resolution regimes and resolution planning to improve the resolvability of those banks’ structures and operations. The evaluation is assessing whether the implemented reforms are reducing the systemic and moral hazard risks associated with SIBs. It is also examining the broader effects of these reforms on the functioning of the financial system and the economy.

Authors are invited to submit papers that examine the effects of TBTF reforms for SIBs. In particular, papers would cover one or more of the following areas:

  1. To what extent are TBTF reforms achieving their objectives? Are they reducing the systemic and moral hazard risks associated with SIBs? Are they enhancing the ability of authorities to resolve systemic banks in an orderly manner and without exposing taxpayers to loss, while maintaining continuity of their critical economic functions?

  2. Do the effects of these reforms differ by type of bank (e.g. global vs domestic SIBs) or jurisdiction? If so, what might explain these differences?

  3. What have been the broader effects of these reforms on the resilience and structure of the financial system, the functioning of financial markets, global financial integration, or the cost and availability of financing?

Papers should be submitted via the SAFE website by Tuesday 3 March 2020.