Journal of Financial Intermediation
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The Federal Reserve Bank of Boston,
in association with the Journal of Financial Intermediation,
jointly sponsor a conference on


THE IMPACT OF ECONOMIC SLOWDOWNS ON FINANCIAL INSTITUTIONS AND THEIR REGULATORS

Federal Reserve Bank of Boston, 600 Atlantic Avenue, Boston, MA

April 17-19, 2002

Wednesday, April 17

  5:00 PM Welcome Reception Federal Reserve Bank of Boston, 31st Floor
   
  Thursday, April 18
   
  8:00 AM Continental Breakfast New England Room
   
  8:20 AM Welcoming Remarks: Lynn E. Browne and Eric S. Rosengren
    Federal Reserve Bank of Boston
   
  SESSION I:  IMPACT OF ECONOMIC DOWNTURNS ON BANKS
  8:30 AM Miguel Angel Segoviano (London School of Economics)
  Philip Lowe (Bank of International Settlements)
    "Internal Ratings, the Business Cycle and Capital Requirements: Some Evidence from an Emerging Market Economy"
    Discussant:  Frederic S. Mishkin, Columbia University
   
  9:30 AM Eva Catarineu-Rabell (University of Pompeu Fabra and Bank of England)
  Patricia Jackson (Bank of England)
  Dimitrios P. Tsomocos (Bank of England and International Financial Stability Programme)
  "Procyclicality and the New Basel Accord -- Banks' Choices of Loan Rating System"
    Discussant:  Michael W. Klein, Tufts University
   
  10:30 AM Break
   
  11:00 AM John Jordan (Federal Reserve Bank of Boston)
  Eric Rosengren (Federal Reserve Bank of Boston)
  "Economic Cycles, Collateral Cycles and Bank Health"
  Discussant: Klaas H.W. Knot, De Nederlandsche Bank
   
  Noon Lunch
   
    SESSION II:  AFFECT OF ECONOMIC DOWNTURNS ON BANK REGULATION
  1:30 PM Anjan V. Thakor (University of Michigan)
    "Banking Stability, Reputational Rents, and the Stock Market:  Should Bank Regulators Care about Stock Prices"
    Discussant:  Arnoud W.A. Boot, University of Amsterdam
   
  2:30 PM George Pennacchi (University of Illinois)
    "Bank Deposit Insurance and Business Cycles:  Controlling the Volatility of Risk-Based Premiums"
    Discussant: George G. Kaufman, Loyola University-Chicago
   
  3:30 PM Break
   
  4:00 PM Introduction of Distinguished Speaker:   Cathy E. Minehan, Federal Reserve Bank of Boston
    Address:  E. Gerald Corrigan, Goldman, Sachs & Co.
   
  5:00 PM Reception Federal Reserve Bank of Boston, 31st Floor
  Friday, April 19
  8:00 AM Continental Breakfast New England Room
   
  SESSION III:  AUDITING BANKS DURING ECONOMIC DOWNTURNS
  8:30 AM Luc Laeven (The World Bank)
  Giovanni Majnoni (The World Bank)
  "Loan Loss Provisioning and Economic Slowdown:  Too Much Too Late?"
    Discussant:  S. P. Kothari, MIT
   
  9:30 AM Jeffery W. Gunther (Federal Reserve Bank of Dallas)
  Robert R. Moore (Federal Reserve Bank of Dallas)
  "Loss Underreporting and the Auditing Role of Bank Exams"
    Discussant:  George Plesko, MIT
   
  10:30 AM Break
   
  11:00 AM Reint Gropp (European Central Bank
  Jukka Vesala (European Central Bank
  Giuseppe Vulpes (European Central Bank
  "Equity and Bond Market Signals as Leading Indicators of Bank Fragility"
  Discussant: Christopher James, University of Florida
   
  Noon Lunch and Adjournment