12th FINANCIAL RISKS INTERNATIONAL FORUM

The Institut Louis Bachelier, in cooperation with the Fondation du Risque, the Europlace Institute of Finance and the Louis Bachelier “Finance and Sustainable Growth” Laboratory, is pleased to invite you to the 12th Financial Risks International Forum. 

In the current context, this year’s forum will focus on “Low Interest Rate Environment: Search for Yield, Risk Management and Transitions” 

The aim of this 12th  Financial Risks International Forum is to highlight the methodological and regulatory challenges confronting financial players in a low interest rate environment and the transition to a ‘new normal’.  

Interest rates in major developed countries have reached historically low levels. Risk premia of traditional asset classes reduced significantly. In this environment, banks, insurance companies and institutional investors face the challenge of generating sufficient returns to meet their commitments. They are tempted to turn to alternative asset classes or riskier investment strategies. The compression of yields leads to competitive pressure on costs and the development of new, less regulated players. This exceptional situation, by historical standards, raises important questions on interest rate modeling, monetary policy effectiveness, the construction of adapted stress tests, financial institutions’ risk-taking behavior, and the impact of low rates on price trajectories and financial stability.