OFR & University of Michigan: Panel 5 - What Are the Emerging Risks in the Financial System and How Might Activities-Based Macroprudential Regulation Address Them? (Day 2)

November 16, 2018 1:21:19
Kaltura Video

Traditional microprudential regulation is firm-based, by definition. But macroprudential regulation is not necessarily activities-based, nor is activities-based regulation necessarily macroprudential. This panel will explore the special challenges of applying activities-based regulation to systemic threats and macroprudential monitoring. How can we define and measure activities to support monitoring in a consistent and comparable fashion across the system? When do interactions among financial activities generate systemic problems through concentrated exposures, feedback loops, or operational bottlenecks? How might regulators exploit network models and granular data on financial transactions and positions to understand and respond to emerging systemic problems within an activities-based framework?