T20 Task Force "Financial Resilience"
- Professor of Finance and Economics, Imperial College London
- Director, Brevan Howard Centre
- Nippon Life Professor Emeritus of Finance, Wharton School, University of Pennsylvania
- Professor of Finance, Goethe University Frankfurt
- Director, Research Center SAFE & Center for Financial Studies
- Research Fellow, CEPR
- Lord Bagri Professor of Economics, London Business School
- Research Fellow, CEPR
- Research Fellow, NBER
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:
- Remove inconsistencies across regulatory rules and territorial regimes, and ensure their credibility concerning implementation.
- Discourage the use of financial regulatory standards as means of international competition.
- Give more weight to pedagogically explaining the established regulatory standards in public, to strengthen their societal backing.
30 May 2017
The recomendations of the Task Force have been included in the document “20 Solution Proposals for the G20” which was submitted to the relevant G20 policy makers, officially to Mr. Peter Altmaier, Head of the German Federal Chancellery, during the T20 Summit GLOBAL SOLUTIONS in Berlin. The report contains recommendations about how to deal with global challenges such as climate change, inequality, and economic crises – chosen for their novelty, implementability and relevance to the G20 during the German presidency. The T20 called on the G20 to follow up on the proposals by agreeing concrete steps for an implementation.
30 May 2017
The Task Force paper and topic were discussed on the Think 20 Summit GLOBAL SOLUTIONS in Berlin by a panel on "Improving Financial Resiliance", featuring Claudia Buch (Deutsche Bundesbank), Michael Heise (Allianz), Jan Pieter Krahnen (SAFE), Fabrizio Saccomanni (International Affairs Institute) and Ludger Schuknecht (German Ministry of Finance).
→ Video (3:06–3.40)
- Krahnen, J. P. and C. Wilde (2017): Skin-in-the-Game in ABS Transactions: A Critical Review of Policy Options. SAFE White Paper No. 46.
- Krahnen, J. P. and L. Pelizzon (2016): “Predatory” Margins and the Regulation and Supervision of Central Counterparty Clearing Houses (CCPs). SAFE White Paper No. 41.
- Behn, M., Haselmann, R. and V. Vig (2016): The Limits of Model-Based regulation. SAFE Working Paper No. 75, ECB Working Paper No. 1928.
- Gründl, H. (2015): Solvency II at the Gates: Benefits and Risks of the New Insurance Regulation. SAFE Policy Letter No. 48.