Organisation: Manchester University, CERDI, Ferdi and the BCEAO’s West African Training Centre for Banking Studies (COFEB).
The purpose of the conference was to present the research documents prepared during the project Volatility, Macroprudential Regulation and Economic Growth in Low-Income Countries and to discuss their implications for financial policies (especially macroprudential regulation) for sub-Saharan Africa.
This research project intended to gain a better understanding of the aforementioned issues in relation to financial volatility, macroprudential regulation and economic growth in low-income countries has been conducted over the past two years by the University of Manchester, in association with the Centre for Studies and Research on International Development (CERDI) and the Foundation for Studies and Research on International Development (FERDI). The project, which is being led by Professor Pierre-Richard Agénor, has been supported by two major institutions in the United Kingdom: the Economic and Social Research Council (ESRC) and the Department for International Development (DFID). The members of the project are part of an eminent group of researchers which includes Professor Patrick Guillaumont (FERDI) and Dr. Patrick Plane (Director of Research at CNRS-CERDI). The other members of the project represent a number of other institutions, including the Central Bank of West African States (BCEAO). Programme
Prior to the conference, two training activities open to all participants were run on 8 November. The first activity, entitled Financial Stability, Macroprudential Policy and Monetary Policy: Current Issues and Debates, was led by Professor Agénor. The second activity, Methods of Analysing the Impact of Macroprudential Policies on Financial Stability and Economic Growth, was led by Dr. Neanidis and a team from FERDI.
Financial Volatility, Macroprudential Regulation and Economic Growth in Low-Income Countries
Dakar, 9 November 2016
9:00-9:15 |Welcome Ousmane Samba Mamadou (BCEAO), Aminata Haïdara (BCEAO), Prof. Pierre-Richard Agénor (Manchester) and Prof. Patrick Guillaumont (FERDI) 9:15-10:00 |Session 1: Macroprudential Regulation and Growth: Aid Volatility, Human Capital, and Growth Prof. Pierre-Richard Agénor (Manchester) 10:00-10:45|Session 2: Volatile Capital Flows and Economic Growth: The Role of Macroprudential Regulation Dr. Kyriakos Neanidis (Manchester) 10:45-11:15|Coffee break 11:15-12:00|Session 3: Economic Volatility and Inequality: Do Aid and Remittances Matter? Dr. Lisa Chauvet (DIAL, FERDI) and Dr. Laurent Wagner (FERDI) 12:00-14:00|Lunch 14:00-14:45|Session 4: Does It Pour When it Rains? Capital Flows and Economic Growth in Developing Countries Dr. Patrick Plane (Director of Research at CNRS-CERDI) 14:45-15:30|Session 5: The Growth of Lending, Information-Sharing and Macroprudential Policies Dr. Samuel Guérineau (CERDI) 15:30-16:00|Coffee break 16:00-17:00 |Case studies Prof. Patrick Guillaumont (FERDI) and Dr. Samuel Guérineau (CERDI) 17:00-17:30 |Round table discussion: Lessons Learned from the Macroprudential Regulation Project in West Africa Prof. Pierre-Richard Agénor (Manchester), Prof. Sylviane Guillaumont Jeanneney (FERDI), Ousmane Samba Mamadou (BCEAO) and Samuel Guérineau (CERDI) Closing remarks Prof. Pierre-Richard Agénor (Manchester) and Ousmane Samba Mamadou (BCEAO)
Prior to the conference, two training activities open to all participants were run on 8 November:
1. Financial Stability, Macroprudential Policy and Monetary Policy: Current Issues and Debates. This activity will be led by Professor Pierre-Richard Agénor (Manchester). It focused on a review of recent evidence regarding the use of macroprudential tools and will discuss the importance of coordination between monetary policy and macroprudential policy. The implications for the franc zone will also be discussed.
2. Methods of Analysing the Impact of Macroprudential Policies on Financial Stability and Economic Growth. This activity was led by Dr. Neanidis (Manchester) and Marin Ferry (Université Paris-Dauphine). It focused on econometric methods and the type of data that are used to test the impact of macroprudential tools on economic growth. The databases created for the project wer also presented and discussed. In the press
Abidjan.net, 9 novembre 2016 La politique macroprudentielle et ses effets sur les économies d’Afrique sub-sahraienne au menu d’une conférence régionale
A lire sur http://news.abidjan.net/
Conférence Université de Manchester, CERDI, FERDI et Centre Ouest Africain de Formation et d’Etudes Bancaires (COFEB)
Volatilité financière, régulation macroprudentielle et croissance économique dans les pays à faible revenu
Dakar, 9 Novembre 2016
9-9:15 |Mots de bienvenue Ousmane Samba Mamadou (BCEAO), Aminata Haïdara (BCEAO), Pr. Pierre-Richard Agénor (Manchester) et Pr. Patrick Guillaumont (FERDI)
9:15-10:00 |Session 1 : Régulation macroprudentielle et croissance ; volatilité de l’aide, capital humain et croissance Pr. Pierre-Richard Agénor (Manchester)
10:00-10:45 |Session 2: Volatilité des flux de capitaux, régulation macroprudentielle et croissance Dr. Kyriakos Neanidis (Manchester)
11:15-12:00 |Session 3 : Volatilité économique et inégalités : Rôle de l’aide et des transferts Dr. Lisa Chauvet (Dial, FERDI) et Dr. Laurent Wagner (FERDI)
12:00-14:00 |Pause déjeuner
14:00-14:45 |Session 4 : Does It Pour When it Rains? Capital Flows and Economic Growth in Developing Countries Dr. Patrick Plane (Directeur de recherche au CNRS-CERDI)
14:45-15:30 |Session 5 : Croissance du crédit, partage de l’information, et politiques macroprudentielles Dr. Samuel Guérineau (CERDI)
16:00-17:00 |Etudes de cas Pr. Patrick Guillaumont (FERDI) et Dr. Samuel Guérineau (CERDI)
17:00-17:30 |Table ronde : Leçons du projet pour la régulation macroprudentielle en Afrique de l’Ouest Pr. Pierre-Richard Agénor (Manchester), Pr. Sylviane Guillaumont Jeanneney (FERDI), Ousmane Samba Mamadou (BCEAO), et Samuel Guérineau (CERDI)
Mots de clôture Pr. Pierre-Richard Agénor (Manchester) et Ousmane Samba Mamadou (BCEAO)
The global financial crisis has sparked a new debate about the nature and effectiveness of financial regulation. According to the consensus that has emerged from it, to contain systemic risks and preserve macroeconomic and financial stability, it is essential to go beyond a microprudential approach based solely on regulation of individual institutions and instead adopt a macroprudential approach in the form of regulatory provisions to strengthen the financial system’s resilience to systemic risks, and to limit disruption of the provision of financial services which could have serious adverse consequences for the real economy. At the same time, the growing attention that is being paid to systemic risks and financial vulnerabilities has spawned a huge debate in university and political circles about how macroprudential regulation can help to lessen the procyclicality of the financial system by preventing unsustainable expansions of lending and the creation of asset price bubbles. The current international banking regulations, which were laid down in 2011 by the Basel Committee on Banking Supervision, include a number of tools which are intended to solve this problem. The focus in recent discussions on the consequences of financial volatility for short-term economic stability and the short-term advantages of financial regulations is justified, given the cost of economic and financial crises.
However, the effects of financial volatility on growth and the ways in which they can be mitigated have been ignored to a great extent in these discussions. Gaining an understanding of the longer-term effects of financial regulation is nevertheless essential given the potential negative correlation associated with the fact that regulation policies — intended to reduce procyclicality and the risks of a financial crisis — could in fact be harmful to economic growth due to their impact on risk-taking and incentives to borrow and lend. This negative correlation exists despite the fact that these policies can also encourage indirect growth by contributing to a more stable environment in which actors can assess the risks and returns associated with their investment decisions.