T20 Task Force "Financial Resilience"

Franklin Allen

Franklin Allen

  • Professor of Finance and Economics, Imperial College London
  • Director, Brevan Howard Centre
  • Nippon Life Professor Emeritus of Finance, Wharton School, University of Pennsylvania
Jan Pieter Krahnen

Jan Pieter Krahnen

  • Professor of Finance, Goethe University Frankfurt
  • Director, Research Center SAFE & Center for Financial Studies
  • Research Fellow, CEPR
Hélène Rey

Hélène Rey

  • Lord Bagri Professor of Economics, London Business School
  • Research Fellow, CEPR
  • Research Fellow, NBER

Mission Statement

Resilience of the global financial system is of crucial importance for serving the financing needs of the real economy; it helps to stimulate growth and employment by mitigating busts and financial crises. To this end, this Task Force will review what has been aspired and achieved over the past decade with respect to greater financial resilience. As a result of its work, the task force will identify incomplete projects and possibly blind spots, suggesting priorities for political action. 

Task Force Report

Financial resilience revisited: Why consistency in regulation is now paramount across sectors, regions, and over time

In this paper we propose a way forward towards increased financial resilience in times of growing disagreement concerning open borders, free trade and global regulatory standards. In light of these concerns, financial resilience remains a highly valued policy objective. We wish to contribute by suggesting an agenda of concrete, do-able steps supporting an enhanced level of resilience, combined with a deeper understanding of its relevance in the public domain:

  1. Remove inconsistencies across regulatory rules and territorial regimes, and ensure their credibility concerning implementation.
  2. Discourage the use of financial regulatory standards as means of international competition.
  3. Give more weight to pedagogically explaining the established regulatory standards in public, to strengthen their societal backing.

Download full report

Further Reading