Workshop on banking crisis management

Reserve Bank of New Zealand Workshop on Banking Crisis Management held on 3 March 2005

This workshop coincided with Professor Edward J. Kane's time as the Professorial Fellow in Monetary and Financial Economics at the Reserve Bank New Zealand and Victoria University of Wellington, from January to March 2005. Professor Kane holds the James F. Cleary Chair in Finance at Boston College. He publishes extensively in the area of financial stability, in particular, financial institution and services regulation, deposit insurance, banking crises, taxation of the financial sector, the politics of policymaking and financial markets. Professor Kane also has considerable experience working with business and government.

The workshop aimed to advance the thinking on the fair and efficient prevention and management of crises involving systemically important banks. The programme covered several aspects of banking crisis management, including contingency planning, alternative approaches and techniques for dealing with a crisis, cross-border jurisdictional issues, and the role of regulatory cultures. It consisted of a combination of papers and presentations, discussant comments and academic open discussion. Workshop participants come from a variety of backgrounds and institutions within New Zealand and overseas: members of academia, of the banking and financial services industries, and of policy institutions.

Programme and papers

Workshop on Banking Crisis Management

Thursday 3 March 2005

2nd Floor, Reserve Bank of New Zealand

Chair: Adrian Orr, Deputy Governor, Reserve Bank of New Zealand

9:00-9:20 am

Arrival and coffee


9:20-9:30

Welcome


Alan Bollard, Governor, Reserve Bank of New Zealand


Session 1: Alternatives to blanket guarantees for containing a systemic crisis


9:30-10:10

Containing a Systemic Crisis: Relicensing vs Blanket Guarantees (PDF 315KB)

Ed Kane, Boston College

10:10-10:20

Discussant: Goran Lind, Riksbank
Comments on alternatives to blanket guarantees for containing a systemic crisis (PDF 27KB)

10:20-10:30

Discussant: Keith Hall, Reserve Bank of Australia

Comments (PDF 37KB) Presentation (PDF 22KB)

10:30-10:40

General discussion


Coffee break



Session 2: Contingency planning and crisis management (2 papers)


11:00-11:30

The role and approach of contingency planning for a financial crisis

Goran Lind, Riksbank

Comments (PDF 71KB) Presentation (PDF 83KB)

11.30-12:00

Management of financial crises in cross-border banks (PDF 178KB)

Thorvald Grung Moe, Financial Stability Department, Norges Bank

Presentation (PDF 173KB)

12:00-12:10

Discussant: David Lewis, Australian Prudential Regulation Authority

Presentation (PDF 135KB)

12:10-12:20

Discussant: Geof Mortlock, Reserve Bank of New Zealand

Comments (PDF 103KB)

12:20-12:30

General discussion


Lunch



Session 3: Alternative approaches to crisis management (2 papers)


2:00-2:20

Deposit insurance in New Zealand? (PDF 40KB)

David Tripe, Centre for Banking Studies, Massey University

2:20-2:50

Resolving systemically important banks (PDF 64KB)

Bruce White and Peter Ledingham, Reserve Bank of New Zealand

2:50-3:00

Discussant: Peter Hall, ASB Bank

3:00-3:30

General discussion


Coffee break



Roundtable Session: Regulatory culture and bank failure


3:50-4:20

The role of regulatory culture in the bank failure process (PDF 548KB)

Ed Kane, Boston College

4:20-5:00

Panel Discussion: Ed Kane (Boston College), Goran Lind (Riksbank), David Lewis (Australian Prudential Regulation Authority), Thorvald Grung Moe (Norges Bank), Anthony Grayson (Bank of New Zealand)

5:00-5:30

General Discussion

Contact details

Clinton Watkins
Reserve Bank of New Zealand
PO Box 2498
Wellington
New Zealand
Email: Clinton.Watkins@rbnz.govt.nz
Telephone: +64 4 471 3967
Facsimile: +64 4 473 3964