
Resilience of the Financial System to Natural Disasters
IESE Banking Initiative Online ConferenceMarch 17-18, 2021
Introduction
The Global Financial Crisis of 2008-2009 and others before it were caused by the endogenous instability of the financial system. The COVID-19 crisis is an entirely different crisis, one that is caused by an external shock that can be described as a natural disaster.
How resilient is the financial system to natural disasters? The COVID-19 crisis provides a large-scale natural experiment to address this question, and squarely puts natural disasters, whether they be pandemics or climate catastrophes, on the agenda of financial institutions and bank regulators.
The report to be discussed studies in what way climate and natural disaster risk is different from other more familiar forms of financial and economic risk, and how banks, asset managers and central banks can grapple with climate change and natural disasters. COVID-19 provides a test case on how to manage both ex ante and ex post disaster risk.
Note: This conference is held under Chatham House Rules. Participants are free to use the information discussed, but neither the identity nor the affiliation of the speakers, nor that of any other participant, may be revealed.
Schedule
Online Conference
March 17, 2021 – 15:00 to 18:15 (CET time)
March 18, 2021 – 15:00 to 18:00 (CET time)
Program
Wednesday, March 17, 2021
15:00 – Welcome and Opening
• Jordi Canals, IESE Business School
• Beatrice Weder di Mauro, Centre for Economic Policy Research
• Xavier Vives, IESE Business School
• Pablo Hernández de Cos, Banco de España
15:30 – Natural Disasters, Climate Change, and Central Banks
• Patrick Bolton, Columbia University
Discussant 1: Sylvie Goulard, Banque de France
Discussant 2: Sabine Mauderer, Deutsche Bundesbank
Chair: Fernando Restoy, Bank for International Settlements
16:45 Break
17:00 – Do Asset Managers Respond to Natural Disasters?
• Marcin Kacperczyk, Imperial College London
Discussant 1: Robert Eccles, Saïd Business School – Oxford
Discussant 2: Stefano Giglio, Yale School of Management
Chair: Patricia Mosser, Columbia University
18:15 – End first day
Thursday, March 18, 2021
15:00 – Welcome
• Xavier Vives, IESE Business School
15:05 – Mitigating Disaster Risks to the Financial System
• Harrison Hong, Columbia University
Discussant 1: John Hassler, IIES- Stockholm University
Discussant 2: Robert Litterman, Kepos Capital
Chair: Elena Carletti, Bocconi University
16:20 Break
16:30 – Nobel Dialogue
• Robert F. Engle, Stern School of Business NYU
• Lars P. Hansen, University of Chicago
Chair: Xavier Vives, IESE Business School
17:40 – Conclusion
• Hélène Rey, London Business School
• Xavier Vives, IESE Business School
18:00 – Close of meeting
For more information please contact: officevives@iese.edu