Eighth Annual International Banking Conference
International Financial Instability: Cross-Border Banking and National Regulation
Cosponsored by the Federal Reserve Bank of Chicago and the World Bank.
In conjunction with the International Association of Deposit Insurers, the Federal Reserve Bank of Chicago held its ninth annual International Banking Conference on October 5–6, 2006. This year, the theme was "International Financial Instability: Cross-Border Banking and National Regulation." Financial stability depends in large part on appropriate prudential supervision and regulation. While banking has increasingly become international and operates across borders, prudential regulation has largely remained national and its jurisdiction limited to financial institutions operating only within national borders. This conference identified implications of this mismatch for international financial stability and examined recommendations for mitigating any adverse effects without reducing gains from cross-border banking activities. The two-day conference featured keynote presentations by Stefan Ingves, Chairman of the Executive Board, Bank of Sweden/Riksbank; Raghuram G. Rajan, Economic Counselor and Director of Research, International Monetary Fund; J. P. Sabourin, Chief Executive Officer of the Malaysia Deposit Insurance Corporation, and Chair of the Executive Council and President, International Association of Deposit Insurers; and Sheila Bair, Chairman of the Federal Deposit Insurance Corporation.