SYMPOSIUM ON FINANCIAL STABILITY Thursday, April 14, 2011, 5-8 p.m., Aula Magna, Romanian American University Organized by the Romanian-American University Bucharest, CFA Romania, DOFIN ASE and the Romanian Association of Financial Analysts

1. Endogenous Risk Risk Management Financial Stability Lucian Isar - DOFIN

2. Millenium Bridge, London

3. Millenium Bridge , Harry Potter’s view

5. Architects of Choice ( Sunstein and Thaler , 2008) Complex adaptive systems ( Santa Fe Institute, HBS)

7. Risk Management Market Risk VAR Dynamic Hedging Duration Covariance Credit Risk Provisions Insolvency Restructuring Deleverage Liquidity

8. Financial Stability Two categories of definitions, based on a system approach and those, which are related to the volatility of directly observable financial variables. E.g. - “ financial stability as the prevalence of a financial system, which is able to ensure in a lasting way, and without major disruptions, an efficient allocation of savings to investment opportunities” (Mishkin 1991) - “A financial system is in a range of stability whenever it is capable of facilitating (rather than impeding) the performance of an economy, and of dissipating financial imbalances that arise endogenously or as a result of significant adverse and unanticipated events.” (Schinasi 2004) - “Other, less conceptually convincing, but more directly observable definitions (and therefore frequently used in theoretical work) equate financial stability with situations without banking crisis and with asset price stability, including interest rate smoothness, relative to some benchmark.” (Issing 2004)