In the wake of the financial crisis, most developed economies find themselves with a significant part of their banking sector supported by the state. This poses significant and novel challenges for policymakers on a topic where the existing body of knowledge is under development. This conference solicits emerging research with implications for policy towards aided banks, both analysing what should be done in the current situation and drawing lessons for the future. Are policymakers doing what is necessary, and could they do better?
The organizers welcome theoretical and applied papers from a variety of areas, such as competition policy, banking, game theory, political economy, financial economics and fiscal policy. Potential topics include:
- Do bank rescue packages have adverse consequences for competition? If banks are special enough to be saved, should competition policy apply directly?
- What is the best way to save a bank? Should governments impose strict conditions?
- How should 'state-owned' banks be run?
- How should public money be repaid and how quickly?
- Are cross-border issues dealt with satisfactorily?
- How should we deal with the fiscal ramifications of public support?
Policy implications will be discussed by an expert panel with contributions from:
Wim Boonstra (Rabobank),
Eduardo Levy Yeyati (Barclays Capital and Universidad Torcuato Di Tella),
Enrico Perotti (University of Amsterdam),
Paul Seabright (University of Toulouse and member of the EC Economic Advisory Group for Competition Policy).
Karin Barth-Romp, Wilko Bolt, David-Jan Jansen and Steven Poelhekke.