ECOBATE 2011

Winchester Guildhall, Thursday 29 September 2011

About this conference

The role of banks has come under increasing scrutiny. The ongoing financial crisis has thrown a spotlight on their role as creators of credit and how their investment decisions determine how economies develop.

This conference will explore the past, present and future role of banks and examine how the financial ‘operating system’ affects the economy, the labour market, asset prices and financial stability.

Renowned experts in the fields of banking and finance, monetary policy, banking practice, early warning models and novel finance mechanisms will come together to consider the policy implications of their work. One topic will be how to create a financial architecture capable of financing truly sustainable local economic development.

With keynote contributions from Lord Adair Turner, whose joint roles as Chair of the FSA and the Committee on Climate Change give him a unique perspective on the linkages between finance, the economy and the environment, this gathering will offer insights into the future of finance and a chance to participate in the development of ideas in this important field.

Who is attending?

Local government officers, local business leaders, the interested general public, policy activists, international economists, finance academics, banking practitioners, regulators, central bankers, politicians, students of the economy and finance, finance journalists, think tank members.

The conference is hosted by the Vice-Chancellor of the University of Southampton.

Attendees will:

  • Have an opportunity to engage with leading thinkers and policy-makers
  • Learn why there are recurring banking crises
  • Hear about banking crisis early warning systems
  • Examine the credit creation process and how it affects growth, employment and property prices
  • Gain insights into how banks influence local economic development
  • Be inspired by efforts to re-localise banking and develop alternative funding mechanisms
  • Witness the launch of a new book by nef explaining accessibly how the monetary system works

Key sessions include:

  1. How to avoid banking crises and how to handle them without burdening the tax payer
  2. Lessons from local banking in Europe
  3. Monetary and fiscal policies that deliver stable,
    sustainable growth
  4. Local money flows – their benefits, how to encourage
    them and make them work for you
  5. Financing the transition to a low-carbon economy
    and preventing destructive growth
  6. A government funding model for public infrastructure
    investment that does not add debt

For further information

Please contact the Event Manager, Ms Jo Hazell at J.L.Hazell@soton.ac.uk or telephone 023 8059 4858, or contact the Centre Team at cbfsd@soton.ac.uk.

All attendees are asked to kindly register.

Please go to the registration page for this purpose.

Featured Session

Reviving local banking in the UK
2 sessions:
King Alfred Conference Chamber, 1.30-3.30pm
Bapsy Hall, 3.45-4.45 pm
Admission: Free, open to the public

Why Local Banking?

In the UK, the inability to access affordable finance is hindering economic recovery. When funding cannot be obtained, businesses fail or never start, and projects are put on hold. This also sets back efforts to decarbonise the economy. Large banks often make lending decisions removed from the location of the applicant and with less local knowledge. In other countries, such as in Germany, the majority of banking relationships are still locally based. This is said to be a key cause of the strength of the German SME sector. This public session will explore the case for reviving local banking in the UK and the benefits of localising money flows. It will explore the risks and benefits to local government of supporting local banks and the audience will hear of plans for a community bank in Hampshire.

Featuring: How the German local banking system supports small firms and local communities
Niclaus Bergmann, Managing Director of the Savings Bank Foundation for International Cooperation, Germany

Local and macroeconomic benefits of Savings Banks

Wolfgang Neumann, Director, EU-Representation of the German Savings Banks Association, Brussels

Benefits to local economies of keeping spending local: the findings of the LM3 project
Tony Greenham, Head of Finance and Business, New Economics Foundation

Local views on the idea of a Community Bank in Hampshire
Alex Templeton, Director, The Farm Energy Project

Professor Neil Marriott BSc, MBA, PhD, DipM, CPFA, FHEA, Dean of Winchester Business School, University of Winchester

Chair: Professor Richard Werner, Director, Centre for Banking, Finance and Sustainable Development, University of Southampton

Thursday 29th September, 2011

TimeSubject and Location
8.25Registration and refreshments Registration Entrance Area 1st Floor, Guildhall,Tea & Coffee in adjacent Keats Room
9.00Vice-Chancellor’s Welcome King Alfred Conference ChamberProfessor Don Nutbeam
Vice-Chancellor, University of Southampton
9.10Welcome from the Centre for Banking, Finance and Sustainable Development King Alfred Conference ChamberRichard WernerProfessor of Banking, University of Southampton, Director, Centre for Banking, Finance ands Sustainable Development
9.15Parallel Academic Sessions
Stream 1: Bank Regulation 1 King Alfred Conference Chamber 
Chair: Nicolas Ryder
Stream 2: Banks & Economy Walton Suite 
Chair: Peter Szilagyi
Stream 3: Monetary Policy Wykeham Room
Chair: Eiji Okano
a) The Macroeconomic Implications of Changes in Bank Capital and Liquidity Requirements in Canada: Insights from the BoC-GEM-FIN (C. de Resende & N. Perevalov, BoC)a) The lessons from QE and other ‘unconventional’ monetary policies – evidence from the Bank of England

(V. Lyonnet, Paris Polytechnique & R. Werner, Southampton)
a) Interaction Between Monetary Policy and Income Inequality in a Deposits Market (Aleksandr Grigoryan)  
b) Policy Paper: Financial Stability, The role and practice of financial policy (Charles Haswell, HSBC)b) World monetary discrepancies: A new macroeconomic analysis (Alvaro Cencini, Lugano)b) Monetary Policy Trade-offs in a Portfolio Model with Endogenous Asset Supply (Stefan Schueder, Goettingen)
c) Policy Paper: How to prevent bank regulators from being captured by their industry (Thierry Philipponat, FinanceWatch)c) A flow-of-funds perspective of the financial crisis: The Euro area (B. Winkler & C. Giron, ECB)d) Keep your word: Time varying inflation targets and Inflation Targeting Performance (Ishak Demir, Bilkent)  
d) The development of credit unions in the United Kingdom – a critical review of government policies since 1997

(Nicolas Ryder, UWE)
d) Bank Internationalisation during the Global Financial Crisis: U.K. and U.S. Bank Perspectives

(P. Szilagyi, Cambridge & J. Batten, HK)
b) Optimal Monetary Policy and Inflation Rate Volatility under Local Currency Pricing (Eiji Okano, Chiba Keizai)
Stream 4: Risk and Banks Eversley Room 
Chair: Stefan Jacewitz
Stream 5: Markets St. John’s House
(opposite Guildhall)
Bevero Room (1st fl.)
Chair: Gabe de Bondt
Stream 6: Bank Behaviour St. John’s House
(opposite Guildhall)
De Winton Room (1st fl.)
Chair: Jenifer Daley
a) Risk, capital buffers and bank lending: A granular approach to the adjustment of Euro area banks

(L. Maurin, ECB & M. Toivanen, BoF)
a) The Impact of the 2007-2010 Crisis on the Financial Centres

(Gunther Capelle-Blanacard & Yamina Tadjeddine, Paris1)  
a) Why Do Banks Pay Dividends? Cross Country Evidence in the Context of the Financial Crisis

(J. F. Abreu, BdePortugal & M. A. Gulamhussen, ISCTE-IUL)
b) Liquidity Risk: Penalty Rates and Liquidity Requirements (Guiseppe Maddaloni)b) Interest Rate Pass-Through in Italian Regions (Boriss Silverstovs, ETH Zurich)b) The international propagation of the financial crisis of 2008 and a comparison with 1931

(R. Moessner, BIS & Bill Allen)
c) Bank Growth and Long Term Risk (Stefan Jacewitz, FDIC)  c) Complementary or Contradictory: Combining Returns Based and Characteristics Based Investment Style Analysis

(Andrew Mason, Surrey)
c)The Quest for Growth: The Impact of Bank Strategy on Interest Margins

(Saskia van Ewijk, Nyenrode)
 d) The Predictive Content of Sectoral Stock Prices: A US-Euro Area Comparison (Gabe Jacob de Bondt, ECB)  d) Competitive conditions in the Jamaican Banking Market 1998-2009 

(K. Matthews & J. Daley, Cardiff)
11.15Refreshment break Keats Room, 1st Floor, Guildhall
11.30Plenary 1: KEYNOTE: Bank Regulation: The Role of the Macroprudential Authority King Alfred Conference ChamberCharles Goodhart Founding Member, Monetary Policy Committee, Bank of England; Prof. Emerit. LSE
12.30Lunch St. John’s House (opposite Guildhall), Assembly Hall (1st floor)
1.30Parallel Academic Sessions
Stream 7:  Local Banking King Alfred Conference Chamber
Chair: Richard Werner
Stream 8: Bank Regulation 2 Walton Suite
Chair: Andy Mullineux
Stream 9: Bank Credit Wykeham Room
Chair: Concha Artola
a) Benefits to keeping spending local: findings of the LM3 project

(Tony Greenham, nef)
a) Price Stability and Financial Imbalances: Rethinking the Macrofinancial Framework After the 2007-8 Financial Crisis (Fabio Spartaco Panzera, Fribourg)a) Do Banks Value the Eco-Friendliness of Firms in their Corporate Lending Decision? Some Empirical Evidence

(M.Nandy & S. Lodh, Radboud) 
b) The benefits of having 70% of the banking sector locally based and locally controlled

(Wolfgang Neumann, German Savings Bank Association; Richard Werner, Southampton)
b) Basel III: Is the Cure Worse than the Disease? (Alister Milne, Loughborough)  b) Credit cycles: freewheeling, driven or driving?

(Simon Mouatt, Southampton Solent)
c) Towards a Community Bank in Hampshire

(Alex Templeton, Farm Energy Project)
c) A Cost-Benefit Analysis of Basel III: Some Evidence from the UK (Meilan Yan, Loughborough)c) Credit Market Conditions and The Impact of Access to the Public Debt Market on Corporate Leverage

(Anna Korzhenitskaya, Middlesex)
d) Mid-wife to local banks – Exporting German know-how in local banking (Niclaus Bergmann, Sparkassen Foundation)d) Taxing Banks Fairly (Andy Mullineux, Birmingham)d) Euro Area SMEs Under Financial Constraints: Belief or Reality (Concha Artola, BoSpain, et al. ECB)
Stream 10: Bank Efficiency Eversley Room
Chair: Taufiq Choudhry
Stream 11: Interest Rates & Derivatives St. John’s House
(opposite Guildhall)
Bevero  Room (1st fl.)
Chair: Tarik Driouchi
a) Efficiency and Integration in European Banking Markets (Candida Ferreira, Lisbon Technical)      a) The Effect of Derivative Instrument Use on Capital Market Risk: Evidence from Banks in Developed and Emerging Countries (Christian de Peretti, Lyon1)
b) The Measurement and Determinants of Bank Efficiency in Central Asia (J. Khurshid Djalilov, Bournemouth)b) Nonparametric Conditional Density Estimation of Short-Term Interest Rate Movements: Procedures, Results, and Risk Management Implications

(A. Kaldar, IIT West Bengal & S. Siddiqui, Heidelberg)
c) Does Regulation Matter for Banks in the New EU Member States? (Antonios Kalyvas, Bournemouth)c) An Empirical Analysis of the Impact of the Credit Default Swap Index Market on Large Complex Financial Institutions

(Giovanni Calice, Southampton)
d) Comparison of Efficiency Characteristics Between the Banking Sectors of US and UK During the Global Financial Crisis of 2007-2011

(T. Choudhry & R. Jayasekera, Southampton)
d) The Information Content of Option Implied Volatility Surrounding the 2008 UK Banking Debacle – Evidence from High Street Institutions

(T Driouchi, King’s London)
3.30Refreshment Break At the back of Bapsy Hall, 1st Floor, Guildhall
3.40Plenary 2:  BOOK LAUNCH: New Guide: What is money, who creates it, and how? Bapsy HallChair: Richard Werner Josh Ryan-Collins
senior researcher, new economics foundation, London
3.50Plenary 3:  Seeking Local Banking Solutions: Plenary & Panel Discussion Bapsy HallChair: Professor Neil Marriott, Dean, Winchester Business School
 Insights from the World of Savings BanksNorbert BielefeldDeputy-Director, European Savings Banks Group, Brussels  
 German Views on the Advantages of Local BankingWolfgang Neumann,  Director, EU-Representation of the German Savings Banks Association, Brussels
and
Niclaus Bergmann
Sparkassen Foundation for Int’l Cooperation, Bonn
 Local Views on the Idea of a Community Bank in HampshireProfessor Neil Marriott, Dean, Winchester Business School
4.45Refreshment Break At the back of Bapsy Hall, 1st Floor, Guildhall 
5.00Vice-Chancellor’s Welcome to Evening Session Bapsy HallProfessor Don Nutbeam
Vice Chancellor, University of Southampton
5.10Plentary 4: KEYNOTE: Credit Creation and its Social Optimality  Bapsy HallLord Adair TurnerChairman, FSA and Committee on Climate Change
5.50Plenary 5: Banking and the Economy – Basic But Little-Known Facts with Far-Reaching Consequences Bapsy HallRichard Werner
Professor of Banking, University of Southampton, Director, Centre for Banking, Finance ands Sustainable Development
6.15Panel Discussion and Q&A Bapsy HallLord Adair Turner, Charles Haswell, Richard Werner 
6.50Close of conference