Systemic liquidity and macroprudential supervision Synopsis of the 2nd Macroprudential Supervision Workshop in Vienna

This article presents a synopsis of a workshop on systemic liquidity and macroprudential supervision held at the Oesterreichische Nationalbank on October 28, 2015. We introduce the concept of systemic liquidity and argue that it can be a driving force of systemic risk. Systemic
liquidity is shown to be endogenous and cyclical, and to reflect the interaction between banks,
other financial intermediaries and financial markets. We then summarize the main conclusions
from the individual contributions to the workshop. Finally, we present key questions to be
addressed when developing a macroprudential policy to contain systemic liquidity risk.