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FINANSMARK-Finansmarkedet

Central banks and international law

Awarded: NOK 55,000

The central bank is the normally highest monetary authority of monetary of a state. In the last decades, central bank policymaking has predominantly operated within a specific framework: central bank independence as the institutional set-up; stability as the primary target of its monetary policy; interest rates as the operational tools. Traditionally, the choice of monetary policy is often considered to be at the core of states' sovereignty and therefore traditionally little regulated in international law. It is therefore tempting to assume that internet law tendencies do not influence central bank's evolving policies and legal framework. However, the challenges that central banks are asked to deal with are increasingly of a global nature. In response to the global financial crisis starting in 2007, more so under the current global covid-19 pandemic crisis, as well as in response to the ongoing climate crisis, we see that central banks have gained an expanding role in crisis management. Price instability and financial instability – whether influenced by reckless subprime loan practices, wars, global pandemics or climate crisis related events such as hurricanes – are global in nature and have to be dealt with through international cooperation. The conference shed light on how international law shapes central bank policies and central banks shapes international law, including whether central banks are a clear and consistent concept under international law. It will discuss more traditional topics on central banks and sovereign immunity and topics of an increasing relevance such as sanctions against central banks. It will also explore how the expansive role of central banks is influenced by the availability of other viable crisis resolution measures in international law related to in particular the climate crisis and sovereignty debt crisis. The conference is a part of the research project Central Banks’ expanded role in financial markets (project number 315503), which is a collaboration between the faculty of law at the University of Oslo and Inland Norway University of Applied Sciences. In adition to funding from the Norwegian Research Council (the Finance Market Fund), it benefited from generous funding from Centre Universitaire de Norvège à Paris. The programme was the following: Welcome and introduction by professor Mads Andenæs, Professor at University of Oslo Panel 1: Immunity and central banks Moderator: Geir Ulfstein, Professor at the University of Oslo - The general regime of the immunity of central bank, Christian Tams, Professor at Université Paris 1 Panthéon Sorbonne / University of Glasgow - Diverging rules of immunity of central bank and sovereign debt related assets, Astrid Iversen, Associate Professor/ Postdoc at Inland Norway University of applied Sciences/ University of Oslo - Sovereign wealth funds as integrated parts of central banks and immunity, Régis Bismuth, Professor at Sciences Po Panel 2: Sanctions and central banks Moderator: Charlotte Beaucillon, Professor at Université de Lille - The role of central banks in the implementation of financial sanctions, Chiara Zilioli, Director General Legal Services the European Central Bank - Central banks as targets of sanctions, Daniel Franchini, Lecturer at the University of Sheffield - Indirect sanctions - recognition of government and freezing and seizing of central bank assets, Paolo Palchetti, Professor at Université Paris 1 Panthéon Sorbonne - Central banks in investor-State litigation, issues of jurisdiction, standing and attribution, Senior Lecturer, Filippo Fontanelli, University of Edinburg Panel 3: Informal international law making and central banks Moderator: Geneviève Bastid-Burdeau, Professor at Université Paris 1 Panthéon Sorbonne - The international legal infrastructure of central bank swap lines, Aliénor Nina Burghartz, PhD Candidate at the University of Zurich - Network for greening of the financial system and global administrative law, Jan-Henrik Hinselmann, PhD Candidate at Göettingen Universität - The emergence of a new global monetary system: the Central Bank Digital Currencies (CBDC) and the law-making of a new type of money, Camila Villard Duran, Associate Professor at ESSCA France - International Implications of CBDCs, Christos Hadjiemmanuil, Professor at Universty of Piraeus Panel 4: Complying with and implementing international obligations Moderator: Cristiane Derani, Professor at Universidade do Estado de Santa Catarina - Capital control in international law, Michael Waibel, Professor at Universität Wien - Central Banking and Sustainable Development: Swap Lines and Debt Crisis Resolution Mechanisms, Karina Patricio Lima, Lecturer at University of Leeds - Climate obligations and litigation risk, Javier Solana, Javier Solana, Senior lecturer at University of Glasgow - Central banks, anti-corruption and AML-obligations, Nicola Bonucci, Partner at Paul Hastings, former Director for Legal Affairs OECD

Hovedresultatet er gjennomføringa av konferansen om sentralbankar og internasjonal rett på Université Paris 1 Pantheon Sorbonne, 5-6 Juni 2023 (Sjå program under). Konferansen var eit fruktbart møte mellom både yngre og veletablerte juridiske forskarar og praktikarar hovudsakleg frå ulike europeiske land, men også Brasil og USA. 20 personar deltok aktivt i som panelistar og moderatorar. I tillegg var arrangementet open for deltakarar (ca 30 stk), som kom med spørsmål og deltok i diskusjonar. Konferansen har styrka norsk og europeisk kunnskap om og forskingssamarbeid kring internasjonal rett og sentralbankar på fleire plan: For det første samle konferansen panelistar, forskarar og praktikarar, til å dele og vidareutvikle kunnskap. For det andre var konferansen var open for publikum og kunnskapen vart delt med ca. 30 studentar, praktiserande juristar og statstilsette, inkluderte to juristar frå Noregs Bank, tidlegare leiar for det norske kontaktpunktet for Responsible Business Conduct (OECD) og tidlegare leiar for Etikkrådet for Noregs Pensjonsfond Utland, leiande Compliance Officer hos DNB, samt ein jurist frå sanksjonsavdelinga i det franske finansdepartementet. For det tredje har konferansen styrka samarbeid mellom viktige individ i institusjonane som bidrog til organiseringa av konferansen: Høgskolen i Innlandet, Institutt for Privatrett og PluriCourts ved Universitetet i Oslo, Univeriste Paris 1 Sorbonne og Centre Universitaire de Norvège à Paris. For det fjerde, minst to av paneldeltakarane, Astrid Iversen og Daniel Franchini, vil vidareutvikle sine presentasjonar til publikasjonar i internasjonal anerkjende tidsskrift. For det femte vil Iversen og Franchini i 2023 levere ein prosjektsøknad som byggjer vidare på konferansen sitt tema til Economic and Social Research Council i Storbritania. For det sjette, i etterkant av konferansen, den 7. juni, vart boka av Astrid Iversen, Intercreditor Equity in Sovereign Debt Restructurings, Oxford University Press 2023, lansert på Sciences-Po, på et seminar leia av professor Régis Bismuth https://www.sciencespo.fr/ecole-de-droit/en/actualites/intercreditor-equity-sovereign-debt-restructurings.html. Boka er eit av resultata under prosjektet Sentralbankar si utvida rolle i finansmarknaden (prosjektnummer 315503).

The two day seminar and the subsequent publication of papers in a special edition jounral of European business law review, forms part of the project funded by Finansmarkedsfondet “Central banks expanding role in financial markets” 315503. More specifically it is part of the implementation of the projects third pillar concerning international law drivers and hinders to central banking. Two topics will be discussed: Day one: Central banks, sanctions and immunity. The topic of sanctions and immunity of central banks is an area of law that is developing fast. The past six months after Russia’s invasion of Ukraine, we have seen comprehensive and almost global implementation sanctions against the Russian central bank. These sanctions have consequences not only for the Russian central bank, but for its domestic financial market and financial market actors globally.The legal framework at the European Union level and across jurisdiction in Europe is continuously developed and challenged. The seminar will contribute to examine these developments and discuss the legal basis, legitimacy of the legal framework and the consequences for the broader financial system. Day two: Central banks and financial supervisory authorities’ implementation of International climate obligations Central banks and financial supervisory authorities’ responsibility of implementing state’s international climate obligations is another essential topic in financial regulation. Lawsuits against central banks, amongst other in Belgium on the basis of the lack of climate considerations in their policies seems to be on the rise. The second day of the seminar will therefore analyse the central banks’ and Financial supervisory authorities’ responsibility under international law and EU law and the risk of lawsuits against said institutions.

Funding scheme:

FINANSMARK-Finansmarkedet