X International "Tor Vergata" Conference on Banking and Finance
Competition, Financial Integration And Risks In The Global Economy

5/7 December 2001

University of Rome “Tor Vergata”
Faculty of Economics

in collaboration with

BANCARIA
JOURNAL OF BANKING & FINANCE
JOURNAL OF INTERNATIONAL MONEY AND FINANCE

The Conference is open to the interested scholars

Programme Sessions and Papers presentation

Conference Background

During the last years changes in the system of payments and integration and globalisation of financial markets have deeply modified them, increasing their instability. More, there is a common fear that the (high) level of interdependence among different countries can enhance “contagion effects” and easily transmit unbalances across countries.

In this perspective, innovation in banking and financial sector has been identified, on the one side, as an endogenous change induced by the demand of financial traders managing financial risk (introduction of derivative instruments) and, on the other side, as a process that poses new challenges to policymakers in search of new rules for an efficient management and monitoring of financial markets.

Concerning new rules, the more waited reforms are those relative to the management of bank reserves, the mechanism of deposit insurance, the diversification of bank portfolios, the implementation in the technology of project monitoring and, finally, the corporate governance.

In this perspective the aim of this Conference it also to verify how changes in financial market regulation affect real economy growth in different countries.

With regard to the modified shape of markets, this Conference intends to focus on the introduction of derivatives and on their effects in term of volatility of the underlying assets and exposure to risk of financial intermediaries investing a relevant part of their portfolios in them . The main problem, in term of risk, arising from the use of derivatives are identified as those of transparency, information and real time monitoring of operation that can generate sudden variation of risk exposure of financial intermediary.

A further key issue on which this Conference intends to focus is how the interaction among agents with different trading strategies affect the stock markets volatility, the ratio between fundamental value and observed value of financial assets, and how this ratio is related to fiscal and monetary policies. It is in fact always more evident the role that the interaction between productivity growth of firms and the dynamics of financial markets may play on the determination of fiscal and monetary policies which, always more, are forced to accommodate dramatic changes in inflation, wealth and consumption generated by the evolution of productivity and market value in all sectors including the banking industry.