Financing the Global Economy - How Can Traditional and Non-Traditional Sources Be Integrated?

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Jun 27, 2016
by Patrick Wilson
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Financing the Global Economy - How Can Traditional and Non-Traditional Sources Be Integrated?

The Salzburg Global Forum on Finance in a Changing World convenes at Schloss Leopoldskron to discuss the financing of the global economy Sandra O'Connor, incoming chair of the advisory council of the Forum on Finance in a Changing World

Salzburg Global Seminar begins the sixth annual meeting of Salzburg Global Forum on Finance in a Changing World today.

The two-day seminar, Financing the Global Economy: How Can Traditional and Non-Traditional Sources Be Integrated? will run from June 27 to 29. The session comes against the backdrop of the fragile economic recovery and slowing growth in emerging markets in the aftermath of the financial crisis. The focus of policymakers and regulators is shifting from fixing the causes of the last crisis to stimulating growth. To this end, it’s important to look to ways non-traditional sources can be integrated with more traditional sources to stimulate this growth and protect the fragile recovery. Traditional bank intermediation is still important but technological changes seem to enable a shift to market-based, non-traditional financing models worldwide.

The session will explore how banks, non-bank intermediaries, and markets all contribute to the sound functioning of the global economy. It will evaluate current approaches to strengthening recovery and examine the shift to market-based financing. It will also examine the increase in electronic trading and use of high speed algorithms. It will identify preconditions for strong and stable capital markets, necessary policies to support their development, and methods of managing associated risks.

The Forum brings together policymakers, regulators and supervisors, financial services firms and alternative financial intermediaries, consultants and academics. Bringing together different sectors to discuss issues of global significance in a free and open setting is a cornerstone of Salzburg Global Seminar.

Key questions on financing the global economy will be raised including how can capital markets enhance finance for growth, what is the right allocation of roles between bank-based and market-based financing and how can we harness strengths and capabilities of both to serve the economy?

Fellows will also discuss what the implications of shifts towards market-based finance are for supervisors and regulators.

A special panel is to be convened examining the potential aftermath of last week's "Brexit" referendum in the UK and what will come next in an event that has already had significant impact on the financial sector and the global economy.

Since 2011, Salzburg Global Seminar has convened an annual, high-level session focused on critical challenges of financial regulation following the global financial crisis. The Forum on Finance in a Changing World facilitates critical analysis of the changing regulatory environment, comparison of practical experience and understanding of technology-driven transformations.