As this was a vastly unexplored research area, the new working group has become one of the most research-oriented groups of the Research Task Force. Ladies and Gentlemen, this conference contributes to bringing together three groups involved with the interaction of market and credit risk: bank practitioners, regulators, and researchers. The need to make them exchange their ideas and knowledge is obvious.
The interaction of market and credit risk is simply too complex to be recognised without a proper methodological framework. Both bank practitioners and regulators therefore need input from researchers. Researchers, in turn, need to learn from regulators’ and bankers’ experiences. Finally, bank practitioners and regulators are in close contact either way, and should be so.