Banner image for Financial System of the Future conference - October 31-November 1, 2019

Federal Reserve Bank of Atlanta
1000 Peachtree St. NE
Atlanta, GA 30309

The Center for Financial Innovation and Stability (Federal Reserve Bank of Atlanta) and the Center for the Economic Analysis of Risk (Georgia State University) are organizing the conference Financial System of the Future, to be held at the Federal Reserve Bank of Atlanta on October 31 and November 1, 2019. The conference goal is to bring together economists, finance and risk management professionals, and regulators to discuss the financial system of the future.

The financial services business is an information technology business that operates in an environment with substantial government involvement. The state of both technology and government intervention has evolved considerable since the financial crisis that began in 2007 with potentially large implications for the future financial system. On the government involvement side, we saw first large-scale government intervention to protect financial stability and subsequently, a substantial tightening of prudential regulation to reduce the risk of a future crisis. On the technology side, we have seen an explosion of developments in a wide variety of areas, including increased availability of data to firms, new tools for managing and analyzing data, and new ways for financial services consumers to access and manage their data. These developments have the potential to change profoundly the conduct of financial intermediation. The purpose of this conference is to examine how these and related developments are changing the financial system.

Attendance is free.


Thursday, October 31, 2019
8:15 a.m. Registration and continental breakfast
8:50 Welcome
Paula Tkac, Federal Reserve Bank of Atlanta
9:00 Banks' Response to Bad News
Chair: Glenn Harrison, Georgia State University

"Why Do Banks Hide Losses?Adobe PDF file format
Thomas Flanagan, University of Michigan [Presentation Adobe PDF file format]
Amiyatosh Purnanandam, University of Michigan

"Overcoming Borrowing Stigma: The Design of Lending-of-Last-Resort PoliciesAdobe PDF file format
Yunzhi Hu, University of North Carolina at Chapel Hill [Presentation Adobe PDF file format]
Hanzhe Zhang, Michigan State University
10:30 Break
11:00 Blockchains and Digital Currency
Chair: Baozhong Yang, Georgia State University [Presentation Adobe PDF file format]

"Bitcoin's Fatal Flaw: The Limited Adoption Problem" Adobe PDF file format
Franz J. Hinzen, New York University
Kose John, New York University
Fahad Saleh, McGill University

"Designing Central Bank Digital CurrenciesAdobe PDF file format
Itai Agur, International Monetary Fund
Anil Ari, International Monetary Fund [Presentation Adobe PDF file format]
Giovanni Dell'Ariccia, International Monetary Fund
12:30 p.m. Lunch Speaker
Thoughts on Libra
Warren Weber, Federal Reserve Bank of Atlanta [Presentation Adobe PDF file format]
2:00 Retail Loan Securitizations
Chair: Larry Wall, Federal Reserve Bank of Atlanta [Presentation Adobe PDF file format]

"Shocked by Bank Funding Shocks: Evidence from 500 Million Consumer Credit Cards" Adobe PDF file format
Sudheer Chava, Georgia Institute of Technology
Rohan Ganduri, Emory University
Nikhil Paradkar, Georgia Institute of Technology
Linghang Zeng, Babson College

"The Impact of Skin in the Game on Bank Behavior in the Securitization Market" Adobe PDF file format
Martin Hibbeln, University of Duisburg-Essen [Presentation Adobe PDF file format]
Werner Osterkamp, University of Duisburg-Essen
3:30 Break
4:00 Corporate Bond and CDS Markets
Chair: Charles Kahn, University of Illinois [Presentation Adobe PDF file format]

"The Electronic Evolution of Corporate Bond DealersAdobe PDF file format
Maureen O'Hara, Cornell University
Xing (Alex) Zhou, Federal Reserve Board of Governors [Presentation Adobe PDF file format]

"Credit Default Swaps and Corporate Bond Trading" Adobe PDF file format
Robert Czech, Bank of England [Presentation Adobe PDF file format]
5:30 Reception and dinner
"Proxy Advisory Firms, Governance, Market Failure, and Regulation" Adobe PDF file format
Speaker: Chester Spatt, Carnegie Mellon University [Presentation Adobe PDF file format]
Friday, November 1, 2019
8:30 a.m. Continental breakfast
9:00 Retail Fintech Lending
Chair: Stephen Shore, Georgia State University [Presentation Adobe PDF file format]

"How Magic a Bullet Is Machine Learning for Credit Analysis? An Exploration with Fintech Lending DataAdobe PDF file format
J. Christina Wang, Federal Reserve Bank of Boston [Presentation Adobe PDF file format]
Charles B. Perkins, Federal Reserve Bank of Boston

"Marketplace Lending and Consumer Credit Outcomes: Evidence from Prosper Adobe PDF file format
Timothy Dore, Federal Reserve Board of Governors
Traci Mach, Federal Reserve Board of Governors [Presentation Adobe PDF file format]
10:30 Break
11:00 Small Banks and Fintech Lending
Chair: Joseph Hughes, Rutgers University [Presentation Adobe PDF file format]

"Small Bank Lending In the Era of Fintech and Shadow Banking: A Sideshow?" Adobe PDF file format
Taylor Begley, Washington University in St. Louis [Presentation Adobe PDF file format]
Kandarp Srinivasan, Northeastern University

"What Is Fueling the Fintech Lending Revolution? Local Banking Market Structure and Fintech Market Penetration"
Tetyana Balyuk, Emory University
Allen N. Berger, University of South Carolina
John Hackney, University of South Carolina
12:30 p.m. Lunch
1:30 Capital and Liquidity
Chair: Iftekhar Hasan, Fordham University

"Are Bank Capital Requirements Optimally Set? Evidence from Researchers' Views"
Gene Ambrocio, Bank of Finland
Iftekhar Hasan, Fordham University [Presentation Adobe PDF file format]
Esa Jokivuolle, Bank of Finland
Kim Ristolainen, University of Turku

"Macroprudential Policy with Capital Buffers" Adobe PDF file format
Josef Schroth, Bank of Canada [Presentation Adobe PDF file format]

"Bank Liquidity Creation, Systemic Risk, and Basel Liquidity Regulations" Adobe PDF file format
Daniel Roberts, Harvard University
Asani Sarkar, Federal Reserve Bank of New York
Or Shachar, Federal Reserve Bank of New York
3:30 Adjournment