The Banks-NBFIs connection

Since the Global Financial Crisis, Non-bank financial institutions (NBFIs) have overshadowed banks as main players in different financial activities. Corporate funding, cross-border flows, and the administration of financial assets increasingly rely on NFBIs. However, some research highlights that the role of banks remains pivotal, and instead of a replacement, the expansion of NBFIs is part of an intricate transformation of the banking system. As a result, research and policy debates on the differential role of these institutions are expanding. However, our understanding of how these complex relationships between financial institutions operate and their intrinsic differences remains limited.

This event, organised by the YSI Financial Stability Working Group and the Economics Department of the Leeds University Business School, aims to share the latest contributions, explore knowledge gaps, and discuss the future research agenda on the NBFI-Bank connection. The workshop will combine presentations by young and senior scholars on the roles, differences, and connections between these two groups of financial institutions from a critical economic perspective.

Wednesday 2nd October: Esther Simpson SR (2.08)

To assist virtually, register here 

10:15hs | Welcoming and coffee

10:30 – 12:30hs | Session 1. Moderator:  Iván Weigandi

Yixuan Li & Xudong Zhang (Beijing Normal University) – Liquidity creation under the interaction between banks and non-bank financial intermediaries

Toby Swales (University of Leeds) – Crowding in Stability? The Role of Government Debt in Suppressing Credit Cycles in Safe Asset Dependent Economies

Kamal Tasiu Abdullahi (Istanbul University) – International Financial Stability Implications of NBFIs and Banks: A Theoretical Exploration

12:30 – 14:00hs | Lunch

14:00h – 15:30hs  | Session 2. Moderator: Toby Swales

Giuseppe Fontana (University of Leeds) – The Shadow Banking System through the Lens of the Monetary Circuit Theory

Jo Michell (UWE Bristol) – Theorising non-bank financial intermediation

Annina Kaltenbrunner (University of Leeds) & Bruno Bonizzi (University of Hertfordshire) – International financial subordination in the age of asset manager capitalism

15:30 – 16:00hs | Coffee break16:00 – 17:30hs | Session 3. Moderator: Nitin Nair

Carolyn Sissoko (UWE Bristol) – Is financial innovation market-driven or bank-driven? The case of private equity in the 1980s

Gabriel Porto  (IE-UFRJ) – What a bank wants, what a bank needs: The Political Economy of Financial Systems 

Nicole Cerpa Vielma (UC Santa Barbara) – A Liquidity Preference Theory for Banks in Emerging Capitalist Economies: A Minskyan Balance Sheet Approach