Speakers
Objectives
The session will discuss the interplay of two factors, which are making the life of public and private risk managers increasingly intricate.
– The first one is the difficulty to draw lessons from past trends, also due to general conditions of geopolitical and political instability. We would ask ourselves whether the feeling of a new, more ‘radical uncertainty’ is shared among panelists and how it might exacerbate more traditional risk factors, linked to growth, inflation, leverage, and liquidity perspectives.
– The second one is the increasingly different web of interconnections between financial players. Variety if also dominating Non-Bank Financial Intermediation (NBFI), which is encompassing plain vanilla, well tested and carefully regulated players together with service providers taking or offering risks in untested formats. Separate the ones for the others seems crucial.
Points of discussion
- In which way do you think that geopolitical and political uncertainties affect the private sector? How would you assess the impact of ‘radical uncertainty’ on the resilience of:
A) Financial players
B) Corporates
C) Households
D) Member States
- Is there, in your view, a multiplicative impact of above uncertainties with well-known EU macro vulnerabilities: weak growth, persistent inflation, high public and private debt and high valuations of certain financial assets (equity markets, real estate, etc.)?
- In the very large pot of Non-Bank Financial Intermediation, what are the financial activities which you would consider as generating or amplifying systemic risk, and which are those which you would consider to the contrary as risk absorbing?
- Which sectors of Non-Bank Financial Intermediation are more exposed to interest rate volatility? What type of regulatory answer should the European Union provide, during the new mandate 2022-2029, to reduce any vulnerability generated or amplified by specific players belonging to the NBFI sector?