31st Frankfurt European Banking Congress
19 November 2021
“From Recovery to Strength”
The theme of this year’s congress is inspired by the significant challenges that our economies face in the aftermath of the pandemic. Keynote speakers and panel sessions will discuss how business and economic policy can successfully address these challenges. The forum will assess the opportunities that economic policy opens up for financial institutions and companies. It will also analyse what measures can promote economic recovery whilst ensuring fiscal and financial stability.
The Changing Future of Banking:
The pandemic has had a profound impact on the banking environment with a huge increase in liquidity needs of corporates, the accumulation of household savings, the needs for hedging risks in a very volatile market environment, etc. Some of the consequences are likely to last well into the future. Official interest rates will probably remain low for longer, rising insolvencies remain a concern but, on the other hand, the prospect of several quarters of sustained real GDP growth bodes well for credit demand. In addition, structural factors such as the role of fintechs, decentralised finance and policies and regulations to address climate change, are evolving and will force banks to adapt.
Corporate Strategy in a Post-Pandemic World:
The supply disruptions and shifting demand patterns caused by the pandemic force companies to think about how, going forward, they will produce and distribute whilst taking into account the increasing demands of their stakeholders in terms of ESG. It requires striking a balance between resilience and cost-efficiency. These factors will also influence economic policy, which in turn has implications for business decisions. Industrial policy is making a comeback, fueled by concerns about strategic autonomy in key sectors like health care and technology. However, this has global ramifications in terms of the impact on trade relations.
Macro Policy: Choosing the Right Mix for the Future:
Addressing the economic consequences of the pandemic has shifted the frontiers of monetary and fiscal policy. It has also led to a de facto coordination between both. As the recovery gathers pace, difficult questions will need to be answered. When can we afford to rebuild monetary and fiscal policy leeway? What role do concerns about corporate debt levels play in setting policy? Considering that the health crisis had profound distributional consequences – and certain policy decisions as well – how would the ambition to achieve inclusive growth influence the policy stance?
+++ Coronavirus (COVID-19) update +++
The health and safety of our participants, partners and employees are our highest priority. We are closely monitoring the developments with regard to the coronavirus (COVID-19) and cooperate with all partners involved to ensure all necessary precautionary hygiene and safety measures. We continue to directly communicate timely, relevant updates to our participants and partners as needed.