Policy Conference 2023
Recent Turmoil in Banking Markets: Evidence, Causes, Regulatory Response, Lessons, and Future Needs
About the event
The George G. Kaufman Center for Financial Policy Studies was introduced to evaluate and contribute to the debate concerning current policy issues associated with the financial services industry. Thanks to a generous gift, the center was created to honor the role of Professor Kaufman in financial sector policy research over the past 50 years, and to continue his legacy by encouraging a critical review of public policy options going forward.
On Wednesday, November 29, 2023 the center held its annual conference, bringing together researchers, policy makers, and financial industry executives to review and discuss relevant policy issues affecting the financial services sector. The event featured keynote presentations by Sheila Bair, Former Chair of the Federal Deposit Insurance Corporation; and Loretta Mester, President and CEO of the Federal Reserve Bank of Cleveland. Both have been major contributors to the policy debates over the past three decades.
Research and policy presentations will cover three areas:
- Our lead session discussed issues associated with the recent turmoil in banking markets. What were the causes of the problems in the spring of 2023? How were they addressed? What is the current situation? What lessons were learned? What additional precautions need to be taken? The financial problems seen in recent months revitalize policy debates that have been ongoing for decades (e.g., the role of market discipline, TBTF, capital requirements, liquidity requirements, stress tests effectiveness).
- We discussed issues associated with the mortgage loan search process. There is typically an expected positive relationship between applicant credit quality and loan application acceptance. Are there exceptions? Why? What are the lessons for mortgage market policy?
- Topics emphasizing the research efforts of George Kaufman. During his career, George conducted research and generated special publications on issues associated with bank regulatory reform, the effectiveness of monetary policy, unanticipated consequences of regulatory policies, and the effectiveness of regulations imposed to achieve specific social goals in the financial services industry. Current work in these areas were discussed.
The research presented, while backed by rigorous analysis, was presented for a broader audience with an emphasis on the implications for public policy.
Agenda
| 8:30 a.m. | Registration Opens |
| 9:15 a.m. | Conference Introduction Michael Behnam, Dean, Quinlan School of Business, Loyola University Chicago Keynote Address Sheila Bair, Former Chair, Federal Deposit Insurance Corporation |
| 10:05 a.m. | Break |
| 10:20 a.m. | Session 1: Recent Turmoil in Banking Markets Moderator: Douglas Evanoff, Executive Director, Kaufman Center for Financial Policy Studies, Loyola University Chicago Gregor Matvos, Northwestern University Charles W. Calomiris, Columbia University Carl R. Tannenbaum, Northern Trust Edward Prescott, Federal Reserve Bank of Cleveland |
| Noon | Luncheon |
| 12:45 p.m. | Luncheon Presentation Loretta Mester, President and CEO, Federal Reserve Bank of Cleveland |
| 1:30 p.m. | Session 2: Accessing Credit Moderator & Discussant: Lamont Black, DePaul University Loan Product Steering in Mortgage Markets Sumit Agarwal, National University of Singapore Gene Amromin, Federal Reserve Bank of Chicago Itzhak Ben-David, Ohio State University Searching for Approval Sumit Agarwal, National University of Singapore John Grigsby, University of Chicago Ali Hortacsu, University of Chicago Gregor Matvos, Northwestern University Amit Seru, Stanford University Vincent Yao, Georgia State University Bank Branch Access: Evidence from Geolocation Data Jung Sakong, Federal Reserve Bank of Chicago
Alexander K. Zentefis, Yale School of Management
|
| 2:55 p.m. | Break |
| 3:05 p.m. | Session 3: Financial Markets Policy Research: Honoring the Research of George G. Kaufman Moderator & Discussant: Robert DeYoung, University of Kansas The Fed and its Shadow: A Historical View Charles M. Kahn, University of Illinois Stephen Quinn, Texas Christian University William Roberds, Federal Reserve Bank of Atlanta Credit for Me But Not for Thee: The Effects of the Illinois Rate Cap J. Brandon Bolen, Mississippi College Gregory Elliehausen, Board of Governors of the Federal Reserve System Thomas W. Miller, Mississippi State University Public Sector Banks—A ‘Secret Sauce’?: Understanding the Success of the State Bank of North Dakota Robert S. Chirinko, University of Illinois at Chicago |
| 4:30 p.m. | Adjourn |
Event Info
Date: Wednesday, November 29, 2023
Time: 9:15 a.m. - 4:30 p.m.
Location: Schreiber Center, 16 E. Pearson St., Wintrust Hall (9th floor), Chicago
Recent Turmoil in Banking Markets: Evidence, Causes, Regulatory Response, Lessons, and Future Needs
About the event
The George G. Kaufman Center for Financial Policy Studies was introduced to evaluate and contribute to the debate concerning current policy issues associated with the financial services industry. Thanks to a generous gift, the center was created to honor the role of Professor Kaufman in financial sector policy research over the past 50 years, and to continue his legacy by encouraging a critical review of public policy options going forward.
On Wednesday, November 29, 2023 the center held its annual conference, bringing together researchers, policy makers, and financial industry executives to review and discuss relevant policy issues affecting the financial services sector. The event featured keynote presentations by Sheila Bair, Former Chair of the Federal Deposit Insurance Corporation; and Loretta Mester, President and CEO of the Federal Reserve Bank of Cleveland. Both have been major contributors to the policy debates over the past three decades.
Research and policy presentations will cover three areas:
- Our lead session discussed issues associated with the recent turmoil in banking markets. What were the causes of the problems in the spring of 2023? How were they addressed? What is the current situation? What lessons were learned? What additional precautions need to be taken? The financial problems seen in recent months revitalize policy debates that have been ongoing for decades (e.g., the role of market discipline, TBTF, capital requirements, liquidity requirements, stress tests effectiveness).
- We discussed issues associated with the mortgage loan search process. There is typically an expected positive relationship between applicant credit quality and loan application acceptance. Are there exceptions? Why? What are the lessons for mortgage market policy?
- Topics emphasizing the research efforts of George Kaufman. During his career, George conducted research and generated special publications on issues associated with bank regulatory reform, the effectiveness of monetary policy, unanticipated consequences of regulatory policies, and the effectiveness of regulations imposed to achieve specific social goals in the financial services industry. Current work in these areas were discussed.
The research presented, while backed by rigorous analysis, was presented for a broader audience with an emphasis on the implications for public policy.
Agenda
| 8:30 a.m. | Registration Opens |
| 9:15 a.m. | Conference Introduction Michael Behnam, Dean, Quinlan School of Business, Loyola University Chicago Keynote Address Sheila Bair, Former Chair, Federal Deposit Insurance Corporation |
| 10:05 a.m. | Break |
| 10:20 a.m. | Session 1: Recent Turmoil in Banking Markets Moderator: Douglas Evanoff, Executive Director, Kaufman Center for Financial Policy Studies, Loyola University Chicago Gregor Matvos, Northwestern University Charles W. Calomiris, Columbia University Carl R. Tannenbaum, Northern Trust Edward Prescott, Federal Reserve Bank of Cleveland |
| Noon | Luncheon |
| 12:45 p.m. | Luncheon Presentation Loretta Mester, President and CEO, Federal Reserve Bank of Cleveland |
| 1:30 p.m. | Session 2: Accessing Credit Moderator & Discussant: Lamont Black, DePaul University Loan Product Steering in Mortgage Markets Sumit Agarwal, National University of Singapore Gene Amromin, Federal Reserve Bank of Chicago Itzhak Ben-David, Ohio State University Searching for Approval Sumit Agarwal, National University of Singapore John Grigsby, University of Chicago Ali Hortacsu, University of Chicago Gregor Matvos, Northwestern University Amit Seru, Stanford University Vincent Yao, Georgia State University Bank Branch Access: Evidence from Geolocation Data Jung Sakong, Federal Reserve Bank of Chicago
Alexander K. Zentefis, Yale School of Management
|
| 2:55 p.m. | Break |
| 3:05 p.m. | Session 3: Financial Markets Policy Research: Honoring the Research of George G. Kaufman Moderator & Discussant: Robert DeYoung, University of Kansas The Fed and its Shadow: A Historical View Charles M. Kahn, University of Illinois Stephen Quinn, Texas Christian University William Roberds, Federal Reserve Bank of Atlanta Credit for Me But Not for Thee: The Effects of the Illinois Rate Cap J. Brandon Bolen, Mississippi College Gregory Elliehausen, Board of Governors of the Federal Reserve System Thomas W. Miller, Mississippi State University Public Sector Banks—A ‘Secret Sauce’?: Understanding the Success of the State Bank of North Dakota Robert S. Chirinko, University of Illinois at Chicago |
| 4:30 p.m. | Adjourn |
Event Info
Date: Wednesday, November 29, 2023
Time: 9:15 a.m. - 4:30 p.m.
Location: Schreiber Center, 16 E. Pearson St., Wintrust Hall (9th floor), Chicago