Yale Program on Financial Stability; Master's Program in Systemic Risk

YPFS with a new case study on the Restructuring of Yes Bank (🇮🇳’s 4th largest private bank) in March 2020, as part of the latest Journal on Financial Crises (JFC). “Yes Bank’s rescue was the first bank-led restructuring plan in India’s history.” Case Study: https://lnkd.in/ekfMwF3D JFC: https://lnkd.in/gXFhGnaf

“I was at the Fed for years and never heard decisions being made for political reasons [...] There’s no winning on this. I think you do what you think is the right thing," YPFS's William English tells Max Zahn:

Come to our "Fighting a Financial Crisis" academic conference on August 9! We have organized a 🔥🔥🔥 lineup of papers and speakers. Full agenda and list of papers here: https://lnkd.in/eMRHab99 Register here: https://lnkd.in/eNGdBQYw

New article from YPFS Executive Fellow Susan McLaughlin — “Eliminating Discount Window Stigma: What Can We Learn from Abroad?”

Rejoined the Macro Musings podcast w/ David Beckworth to talk all the issues around the coming (and proposed) discount window reforms and their impacts on the banking system and financial stability. Transcript and audio:

A Supreme Court decision that's rocked the foundations of the how the American government regulates and oversees the economy will also unsettled how the the Federal Reserve supervises financial firms. Experts see extended uncertainty for all involved, more litigation and the possibility gun shy regulators will hold back and leave the financial system more vulnerable. But safe for now is the Fed's emergency lending power. #federalreserve #finreg #economy #monetarypolicy #regulation https://lnkd.in/e3b7Ew-k

How to manage financial crises and policy trade-offs in dealing with failing banks? 📉 Join this new course of the IMF’s Monetary and Capital Markets Department, together with the Yale Program on Financial Stability and the JVI, leveraging on topics covered in the IMF’s Bank Restructuring and Resolution Course, with additional case studies, practical exercises and attendance of the OeNB-SUERF-JVI-Yale Conference on 18 September. 📝 Apply now! 👉 https://bit.ly/3xAnntO 📅 More about the OeNB-SUERF-JVI-Yale Conference 👉 https://bit.ly/3KdBMyE International Monetary Fund Oesterreichische Nationalbank Yale Program on Financial Stability; Master's Program in Systemic Risk SUERF - The European Money & Finance Forum

YPFS Director Andrew Metrick recently gave the keynote address at the EU Single Resolution Board Legal Conference 2024. Andrew’s remarks, “Fighting Financial Crises in the 21st Century: A New Playbook,” can be viewed here:

The Federal Reserve Bank of Atlanta has published my remarks from last week: "Central Bank Liquidity Assistance: Challenges of Franchise and Asset Values in Banking Crises" I sought to cover a few big-picture issues, which have gotten less focus as we’ve zeroed in on a handful of increasingly consensus technical reforms to the discount window: - What should we actually expect from the discount window? Can it be expected to save a bank? - The elephant in the room: how to distribute sufficient emergency liquidity when collateral market value has fallen as a result of monetary policy. The BTFP has been characterized as a policy failure of the discount window. But, would a perfect-world discount window really have been able to accomplish what the discount window did? There are parallels to “dash-for-cash” episodes, where market values fall irrespective of monetary policy or credit risk. - Collateral values are partly endogenous to the central bank’s financial stability function—certainly for credit risk, but also particularly for banks who derive franchise value from funding themselves more cheaply than implied by mark-to-market pricing. This has implications for crisis facility design. The speech is also heavily footnoted to hopefully function as a one-stop-shop document and to provide further reading to those interested.

Latest from me via Central Banking: 'Getting Chiang Mai right.' In this column, I explore the recent structural changes announced by the ASEAN+3 nations, how they are likely to improve the Chiang Mai Initiative Multilateralization (and thereby the global financial safety net), and what challenges remain. Getting Chiang Mai right will be consequential in future crises. As history has shown, financial crises in emerging markets can be brutally destabilizing, and flights to safety in hard currencies is a recurring theme of financial crisis work. Given that Chiang Mai provides emergency liquidity for populations spanning from Bangkok to Seoul, its credibility, flexibility, and size could play a crucial role in the next crisis. Check it out! Special thanks to Ben Hoffner for the true legwork at Yale Program on Financial Stability; Master's Program in Systemic Risk in exploring Chiang Mai, and for his critical scholarship on central bank swap lines. https://lnkd.in/eZEs98-4