SAFE-CEPR RPN EFA Policy Web Seminar: The ECB Financial Stability Review May 2024 – an overview of selected analytical special features

22. Mai 2024 15:00 Uhr
22. Mai 2024 16:00 Uhr

The SAFE Policy Center and the Centre for Economic Policy Research (CEPR) Research Policy Network (RPN) European Financial Architecture (EFA) organize and cordially invite you to attend a web seminar on 
The ECB Financial Stability Review May 2024 – an overview of selected analytical special features
Cosimo Pancaro, Team Lead - Financial Stability • DGMF/SR, ECB

Jaspal Singh, Financial Stability Analyst • DGMF/FRE, ECB

Balázs Zsámboki, Senior Team Lead - Financial Stability • DGMF/FRE, ECB

Moderator: Florian Heider, SAFE, Goethe University, abd CEPR
to be held on 22 May 2024, 3:00 p.m. - 4:00 p.m. CEST, via Zoom

Geopolitical risk can be a threat to financial stability and the global economy. It can adversely affect the economy and financial markets and consequently have a negative impact on the funding, lending, solvency, asset quality and profitability of banks and non-banks alike. Recent history suggests that adverse geopolitical events alone are unlikely to cause a systemic crisis, although they may act as a trigger for systemic distress if they interact with pre-existing vulnerabilities. Looking ahead, policy authorities need to monitor geopolitical risk and assess its possible consequences for financial stability. Financial institutions should apply a combination of sound risk management and business diversification to address geopolitical risk.

The emergence of generative artificial intelligence (AI) tools represents a significant technological leap forward, with the potential to have a substantial impact on the financial system. Conceptually, AI brings both benefits and risks to the financial system. Practically, the overall impact will depend on how the challenges related to data, model development and deployment are addressed – both at the level of financial institutions and for the financial system as a whole. If new AI tools are used widely in the financial system and AI suppliers are concentrated, operational risk (including cyber risk), market concentration and too-big-to-fail externalities may increase. Furthermore, widespread AI adoption may harbour the potential for increased herding behaviour and market correlation. Should concerns arise that cannot be tackled by the current regulatory framework, targeted initiatives may need to be considered.

The policy web seminar is a part of the CEPR Research Policy Network European Financial Architecture.

The attendance is free of charge but registration is required.