About the event

The George G. Kaufman Center for Financial Policy Studies was introduced in 2022 to evaluate and contribute to the debate concerning current policy issues associated with the financial services industry. Thanks to a generous gift, the center was created to honor the role of Professor Kaufman in financial sector policy research over the past 50 years, and to continue his legacy by encouraging a critical review of public policy options going forward.

On Friday, December 2 the Center held its inaugural event: a conference to bring together researchers, policy makers, and financial industry executives to review and discuss relevant policy issues affecting the financial services sector. The event featured a keynote presentation by Federal Reserve Bank of Chicago President and Chief Executive Officer, Charles L. Evans, who has been actively involved in the Federal Reserve System policymaking process over the past 30 years.

Also featured was a presentation by newly appointed Quinlan School of Business Dean Michael Behnam at which he offered his vision for the business school.

Research presentations covered three areas:

  • Issues associated with bank capital regulation—the regulatory policy tool of choice for risk management purposes.
  • The extent of ‘bank uniqueness’ in the financial services industry and the implications for market discipline, moral hazard and industry competition.
  • The use of supervisory and rule-making tools to achieve specific social goals in the financial services industry.

The research, while backed by rigorous analysis, was presented for a broader audience with an emphasis on the implications for public policy.

Event Photos

See the event photos in the gallery below or on Flikr.

The Role and Effectiveness of Financial Regulation

Keynote Speaker

Charles L. Evans Charles L. Evans
President and CEO
Federal Reserve Bank of Chicago


9:15 a.m. Introduction
Douglas Evanoff, Director, Kaufman Center

Welcoming Comments and Keynote Speaker Introduction
Mark C. Reed, President, Loyola University Chicago
Charles L. Evans, President and CEO, Federal Reserve Bank of Chicago
10:15 a.m. Break
10:30 a.m. Session 1: Bank Capital Regulation
Moderator: Tassos Malliaris, Loyola University Chicago
  Bank Capital Buffers and Lending, Firm Financing and Spending: What Can We Learn from Five Years of Stress Test Results?
Jose M. Berrospide, Board of Governors of the Federal Reserve System
Rochelle M. Edge, Board of Governors of the Federal Reserve System
  Private Equity Investment in U.S. Banks
Robert DeYoung, University of Kansas
Michal K. Kowalik, Federal Reserve Bank of Boston
Gokhan Torna, State University of New York—Stony Brook University
  Restoring Confidence in Troubled Financial Institutions after a Financial Crisis
Charles W. Calomiris, Columbia University
Mark A. Carlson, Board of Governors of the Federal Reserve System
  Session Discussant: Mark Carey, Federal Reserve Bank of Cleveland
Noon  Luncheon
12:40 p.m. Luncheon Presentation
Michael Behnam, Dean, Loyola's Quinlan School of Business
1:00 p.m.  Session 2: Bank Uniqueness: Market Discipline, Market Competition and Moral Hazard
Moderator: Abol Jalilvand, Loyola University Chicago
  Do Financial Consumers Discipline Bad Lenders? The Role of Disclosure Awareness
Mark L. Flannery, University of Florida
K. Philip Wang, University of Florida
Cathy Zhang, University of Florida
  How Important Is Moral Hazard For Distressed Banks?
Itzhak Ben-David, Ohio State University
Ajay A. Palvia, Federal Deposit Insurance Corporation
René M. Stulz, Ohio State University
  A New Framework for Banking Competition: Protecting the Value of Bank Specialness
Allen N. Berger, University of South Carolina
Arnoud W. A. Boot, University of Amsterdam
  Session Discussant: Ramon P. DeGennaro, University of Tennessee-Knoxville
2:30 p.m. Break
2:45 p.m. Session 3: Regulatory Extensions to Achieve Social Goals—Financial Access and Market Stability in Financial Markets
Moderator: Douglas Evanoff, Loyola University Chicago 
  The Case for Regulatory Rulemaking Activities in Mortgage Markets and What Additional Research is Needed to Guide these Activities
Jane Dokko, Federal Reserve Bank of Chicago 
  Challenges for Effective Oversight of Non-Bank Financial Institutions
Nicola Cetorelli, Federal Reserve Bank of New York. 
3:45 p.m. Adjourn

Event details

Date: Friday December 2, 2022
Time: 9:15 a.m. - 3:45 p.m.
Format: In-person
Location: Lewis Towers, Regents Hall, 111 E. Pearson St., 16th floor, Chicago, IL (entrance on Pearson Street)

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