Value proposition

Sustainable Architecture for Finance in Europe

The recent financial crisis has raised serious doubts about the self-stabilizing powers of financial markets. At the same time, societies and governments are confronted with pressing problems – such as the demographic change – for whose solution operative and innovative financial markets and institutions are indispensible.

The Leibniz Institute SAFE analyzes the requirements for an optimal framework – a “sustainable architecture” – for financial markets and their agents. Because of the dynamic interplay of state regulation and market adjustments such a framework needs to be examined and improved continuously. This way, we will be able to, on the one hand, guarantee high stability and, on the other hand, stimulate the willingness and ability for innovation and competition.

Traditional research on financial markets focuses on individual agents and issues. SAFE aggregates this knowledge of what happens on different markets not only within the traditional research areas of financial economics but also across these areas – for example to better understand systemic risks.

SAFE focuses on Europe because Europe is lagging behind the U.S. with respect to research, knowledge transfer and policy advice in the area of financial markets. Financial research today includes European institutions only insufficiently. One reason for this is a shortage of European data. By creating a Data Center, that not only collects existing data but also creates new German and European data sets, SAFE is going to overcome this shortage. Its Policy Center aims at creating and maintaining a continuous dialogue with high-ranking policy makers in Germany and Europe in order to contribute to a sustainable development of financial markets, oriented on stability and growth.

Research and policy advice on financial institutions, financial markets, household finance, corporate finance, and macro finance