Many different aspects of financial architecture have been associated with assorted financial stability issues, Allen says. These include the exchange rate system with currency and sovereign debt crises; financial market structures with stock market crashes; and banks versus non-bank intermediaries with non-bank runs. He goes on to chart the literature on financial architecture and offers his own insights into testing for stability.

Ansgar Walther, Allen’s co-author on the paper, then takes the podium to talk about financial architecture in non-bank intermediaries—asset managers, in particular.

A session from the 2008 Financial Crisis: A Ten-Year Review conference held on 8-9 November 2018 in New York.