DIW Lecture on Money and Finance

Philip R. Lane

SBBS – De-risking Europe’s Financial Markets

Europe’s sovereign debt crisis has proven particularly pernicious. A key reason for that was the strong link between banks and states. Banks’ fate was inextricably mingled with their respective sovereign, what was alluded to as the doom-loop. From a euro area perspective, banks were under-diversified, exposed to too much concentration risk. One interesting answer to this issue could be the creation of a – synthetic – European, i.e. non-national, safe asset – without risk-sharing. Sovereign bond backed securities (SBBS), designed to provide diversification and thus de-risking benefits, could perform a stabilizing role. In the fall of 2016, under the chairmanship of Philip R. Lane, Governor of the Central Bank of Ireland, the European Systemic Risk Board launched a comprehensive study to assess the feasibility as well as cost and benefits of such an approach. 

To register, please confirm your participation by Monday, 21 May 2018 at the email: events@diw.de. 

  • 23.05.2018
  • 12.00 to 1.30 p.m.
  • Elinor Ostrom Hall
    Mohrenstr. 58
    10117 Berlin
  • More details
  • Christiane Zschech
    +49 30 89789 181
  • Dorothea Schäfer
    +49 30 89789 162
  • Lukas Menkhoff
    +49 30 89789 435