Financial innovation: A threat to financial stability?

Posted On May 6, 2022

October 6, 2022 - October 7, 2022

Georgia State University

Program 

General Information

The Center for Financial Innovation and Stability (Federal Reserve Bank of Atlanta) and the Center for the Economic Analysis of Risk (Georgia State University) are organizing a workshop on Financial innovation: A threat to financial stability? Conditions permitting, we will hold the conference in-person at Georgia State University on October 6-7, 2022. The workshop's goal is to bring together economists, finance and risk management professionals, computer scientists and regulators to discuss the long-run effect of the COVID-19 pandemic on market participants, and government authorities.

Financial innovation is sometimes viewed as a threat to financial stability, in part because of its association with some significant shocks such as the association of portfolio insurance's role with the 1987 stock market crash, and mortgage securitization role in the financial crisis of 2007-09. However, innovation can also help firms in measuring and managing risks and supervisors in evaluating the risks being taken by firms. Given the rapid development and widespread application of new technologies, how should firms and supervisors view the relationship between innovation and stability. This workshop will look backward at how innovations have contributed to or detracted from stability in the past. It will also look forward at emerging developments such as blockchains and machine learning to better understand the ways in which these technologies may affect stability in the future.

Paper/panel discussion submissions

We invite academics, professionals, and regulators to submit papers and/or ideas for panel discussions for this workshop. Long abstracts or, preferably, complete manuscripts may be submitted no later than July 25, 2022, on the full range of issues associated with whether financial innovation is a threat to financial stability. These issues include but are not limited to:

  • Analysis of the ways in which current developments in the use of artificial intelligence/machine learning could enhance financial stability and/or threaten stability.
  • Analysis of the ways in which current developments in the use of blockchains in the provision of financial services could enhance financial stability and/or threaten stability.
  • Analysis of the ways in which the growth of financial technology firms outside the prudential regulatory perimeter could pose risks for financial stability.
  • Historical examples in which innovations in financial risk measurement and management have improved financial stability.
  • Historical examples in which the overly rapid growth of immature innovations led to serious strains on financial stability.

Authors are invited to submit full papers or long abstracts through the following link (or the button at the top of this page): https://gsu.qualtrics.com/jfe/form/SV_2gJRo33gahcSYQK

The results of the selection process will be sent by August 22, 2022. Reasonable travel and accommodation expenses will be covered for the presenters of accepted papers. Please email Larry Wall with inquiries at larry.wall@atl.frb.org.

Registration is now closed for this event.

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