Salzburg Global Forum on Finance in a Changing World » Overview

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Global Challenges, Regional Responses - How Can We Avoid Fragmentation in the Financial System?

Seventh session of the Salzburg Global Forum on Finance in a Changing World to address emerging risks to the financial system and explore potential solutions

Nicole Bogart | 26.06.2017

Nearly a decade after the financial crisis, much has been done to strengthen financial systems around the world; however, new signs of fragmentation are emerging. Global financial markets are facing weak economic growth prospects, low interest rates, diverging policy stances among major jurisdictions, and high levels of global debt.

Although banking systems in advanced economies have been strengthened and recapitalized, adjustments to new regulations have altered banks’ business practices and affected fluidity in financial markets. Evidence of financial cutbacks, demonstrated by a sharp reduction in cross-border lending, has been seen in Europe, as some banks reduce their foreign exposure.

Regulators will need to pay close attention to the cumulative effects of various reforms in order to limit any potential negative consequences for the real economy, whereas banks will need to take a longer-term view, tackling structural challenges and communicating their positive role in society.

Starting Monday, June 26, Salzburg Global Seminar will convene a special group of senior leaders and rising specialists to address these emerging risks and explore potential solutions for an intensive two-day program, Global Challenges, Regional Responses: How Can We Avoid Fragmentation in the Financial System? This program is the seventh session of the Salzburg Global Forum on Finance in a Changing World, sponsored by Ernst & Young, HSBC, JP Morgan Chase & Co., and Oliver Wyman.

The latest session in this series will be led by two co-chairs: Ranjit Ajit Singh, Executive Chairman, Securities Commission Malaysia, and Sylvie Matherat, Chief Regulatory Officer, Deutsche Bank AG. They will be joined by a group of 60 experts, including policymakers, regulators and supervisors, financial service firms, consultants, and academics from 19 countries, through the program which will include panel-led discussions, in-depth working groups, and an Oxford-style evening debate.

During the intensive two-day program, participants will consider questions including:

  • What are the emerging risks facing global financial markets and are we prepared for a structure response?
  • What are the prospects for supporting economic growth in the future and how can central banks, policymakers, and the financial industry work together?
  • Is there a better system to coordinate global financial regulation than the one we have now?
  • What are the risks arising from the increasing fragmentation of markets? What are the implications of the fragmentation of the financial eco-system in Europe due to Brexit?

Speaking ahead of the session, Salzburg Global Program Director Tatsiana Lintouskaya said: “The topic of this year’s Forum is extremely pertinent as there is an urgent need to tackle new challenges and risks mounting in global financial markets, to maintain the progress of post-crisis regulatory changes and advance international cooperation in order to avoid further fragmentation and regulatory divergence.”


The Salzburg Global program Global Challenges, Regional Responses: How Can We Avoid Fragmentation in the Financial System? is part of the multi-year series Salzburg Global Forum on Finance in a Changing World. The session is hosted in partnership with Ernst & Young, HSBC, JP Morgan Chase & Co., Oliver Wyman and supported by Clearly Gottlieb, Davis Polk, Deutsche Bank, Buckley Sandler, The Cynosure Group, Dynex Capital Inc., and State Street. More information on the session can be found here: www.salzburgglobal.org/go/580 

26.06.2017 Category: FINANCE, SALZBURG IN THE WORLD, JUSTICE
Nicole Bogart